Due increases for next year

[SL6827]

When are the increases on dues for the following year released by Disney?

 

[LisaS]

The budget statements for each resort are sent out prior to the annual meeting that occurs in early December each year. Looking back at the discussion thread from last year, it looks like the budget statements for 2017 were released on Nov 6, 2016, about a month before the meeting.

Here is the link to that thread, in case you're interested: https://www.disboards.com/threads/2017-dvc-dues-announced-prior-to-annual-meeting.3559447/

 

[SL6827]

The budget statements for each resort are sent out prior to the annual meeting that occurs in early December each year. Looking back at the discussion thread from last year, it looks like the budget statements for 2017 were released on Nov 6, 2016, about a month before the meeting.

Here is the link to that thread, in case you're interested: https://www.disboards.com/threads/2017-dvc-dues-announced-prior-to-annual-meeting.3559447/

Ok, so it is like my home property taxes then, the dues you pay in early 2018 are for your 2017 use year?

 

[LisaS]

The dues we will pay in Jan 2018 are for the 2018 calendar year. The dues cover the cost to operate the resort, fund Member Services, transportation, property taxes, etc. for 2018. If you pay in full in January, you are paying in advance for the coming year. If you pay by monthly debit from a US checking account, you are paying "as you go".

Speaking of property taxes, the resort budgets released in November will include an estimate of the 2018 property taxes for each resort because they will not have the actual figures until some time in 2018. There will also be an adjustment (positive or negative) for the difference between the actual 2017 property taxes and the estimate that we paid as part of our 2017 dues. If the actual 2017 property tax was higher than the estimate, the additional amount due will be included in the 2018 dues. For those who pay monthly, that additional amount will be added to the January 2018 payment. If the actual 2017 property tax was lower than the estimate, the difference will be credited towards the 2018 dues.

We all pay our dues on an annual basis, regardless of UY. This leads some to think that for a UY late in the year, you are paying dues now for points you don't get until late in the year. This is not true. I have an October Use Year so the dues I will pay in January 2018 for calendar year 2018 cover the last 9 months of my Oct 2017 UY and the first 3 months of my Oct 2018 UY. In terms of points, the dues I pay in Jan 2018 cover 9/12ths of my Oct 2017 points and 3/12ths of my Oct 2018 points.

 

[miTnosnhoJ]

Ok, so it is like my home property taxes then, the dues you pay in early 2018 are for your 2017 use year?

Dues are for the calendar year. Not related to use year.

 

[LisaS]

Another thing re: property taxes, depending on your personal situation you may be able to deduct your DVC resort property taxes on your tax return. In late December/early January, you will receive your actual dues bill. It will also be available online in your DVC account. Somewhere on that statement will be a line item "2017 Actual Property Taxes" or similar wording. You will need that actual dollar amount when you do your 2017 taxes.

 

[DisneyDenis]

Objectively, Membership dues are calendar year based and not Use Year related. That said, subjectively I personally think of dues as associated with the use year of my trip. For example, I am going to AKV Jambo the last week of Feb 2018. If I were to use my Dec UY SSR points, then I would be using Dec 2017 points and would cost based on SSR dues for 2017. If I were to use my Feb UY BLT points, then I would cost based on BLT dues for 2018. This costing is just a game of mine that I compare to the "cash rate" with any discounts offered. Sort of makes me feel good about being in DVC.

 

[SL6827]

Dues are for the calendar year. Not related to use year.

Oh, ok. Gotcha. Another question, if you don't mind or anyone out there can reply. When a contract becomes available say with the following points availability of, (example only) 0/2017, 50/2018, 50/2019, will your first dues be due for payment in early 2019, for the 2018 points? Sorry, I still have lots to learn. I think if someone was to become a DVC tutor for potential first time buyers, they might could earn themselves some extra cash there.

 

[SL6827]

Finished typing the above question before the previous answers.

 

[SL6827]

The dues we will pay in Jan 2018 are for the 2018 calendar year. The dues cover the cost to operate the resort, fund Member Services, transportation, property taxes, etc. for 2018. If you pay in full in January, you are paying in advance for the coming year. If you pay by monthly debit from a US checking account, you are paying "as you go".

Ok, so its a pay forward, not like my property taxes as pay backwards.

 

[SL6827]

Oh, ok. Gotcha. Another question, if you don't mind or anyone out there can reply. When a contract becomes available say with the following points availability of, (example only) 0/2017, 50/2018, 50/2019, will your first dues be due for payment in early 2019, for the 2018 points? Sorry, I still have lots to learn. I think if someone was to become a DVC tutor for potential first time buyers, they might could earn themselves some extra cash there.

So the dues for the 2018 points will most likely be included in the initial purchase price?

 

[SL6827]

I have an October Use Year so the dues I will pay in January 2018 for calendar year 2018 cover the last 9 months of my Oct 2017 UY and the first 3 months of my Oct 2018 UY. In terms of points, the dues I pay in Jan 2018 cover 9/12ths of my Oct 2017 points and 3/12ths of my Oct 2018 points.

Ya, I have to get this part figured out as well. Just not right at the moment though. But thanks for the advice!

 

[miTnosnhoJ]

Oh, ok. Gotcha. Another question, if you don't mind or anyone out there can reply. When a contract becomes available say with the following points availability of, (example only) 0/2017, 50/2018, 50/2019, will your first dues be due for payment in early 2019, for the 2018 points? Sorry, I still have lots to learn. I think if someone was to become a DVC tutor for potential first time buyers, they might could earn themselves some extra cash there.

Your first dues payment to Disney would be January 2018 for calendar year 2018. Then you pay every January after that.
Your seller may try to get you to pay prorated 2017 dues, since you are buying mid-year, but in my view, this is not reasonable since you get no 2017 points. You did not say which use year applies for your example, so the answer could change a bit based on use year. Use year would not impact what you owe Disney, but might impact the negotiations with the seller.

 

[SL6827]

Your first dues payment to Disney would be January 2018 for calendar year 2018. Then you pay every January after that.
Your seller may try to get you to pay prorated 2017 dues, since you are buying mid-year, but in my view, this is not reasonable since you get no 2017 points. You did not say which use year applies for your example, so the answer could change a bit based on use year.

Ok, so it is not wise to pay dues on years that you get no points. I was already thinking that way, but I was just assuming that most sellers would think the same way. Are there certain contracts that are in such demand that the sellers can get dues paid for years there are no points available?

 

[miTnosnhoJ]

Ok, so it is not wise to pay dues on years that you get no points. I was already thinking that way, but I was just assuming that most sellers would think the same way. Are there certain contracts that are in such demand that the sellers can get dues paid for years there are no points available?

Some brokers will try. It is best to think about your total out of pocket expense to buy a certain contract. This would generally be the sum of $ per point, closing costs, and pro-rated maintenance fees. All are negotiable. Also, MF may not be huge in the scheme of things. If I wanted to make a low offer, I might include MF to soften the blow. If they are asking a very high price, and it was stripped, I would not offer to pay MF. It all depends, but keep an eye on the total cash leaving your pocket. It is not so important how it is divided up.
When Disney considers whether to exercise ROFR, they will also consider the total deal.

 

[SL6827]

Ya, well I have pretty much made up mind that I am not going to pay dues on points that I won't be getting. I learned a bit today. Thanks!!!