DVC HARPTA Tax
If you’re selling or buying a Disney Vacation Club contract tied to a Hawaii-based resort like Aulani, you may encounter the DVC HARPTA tax. HARPTA stands for the Hawaii Real Property Tax Act, and it applies when a non-Hawaii resident sells real estate located in Hawaii. That includes resale contracts at Disney’s Aulani Resort. At DVC Sales, we help ensure your transaction meets all state requirements, and our dedicated site, www.dvcharpta.com, is designed specifically to assist sellers affected by this tax.
What Is HARPTA Tax for DVC?
HARPTA requires withholding 7.25% of the gross sales price from any seller who isn’t considered a Hawaii resident for tax purposes. This withholding is not necessarily the final tax due—it’s a prepayment of potential capital gains tax owed to the state. Whether you’re a U.S. resident or a foreign seller, if you don’t live in Hawaii, this rule can apply. HARPTA is separate from the federal FIRPTA withholding requirement and may apply even if FIRPTA does not.
Who Is Affected by DVC HARPTA?
Any non-resident of Hawaii who is selling DVC points at Aulani may be subject to HARPTA. That includes both U.S.-based and international sellers. Buyers are legally obligated to ensure the withholding occurs and is properly submitted to the Hawaii Department of Taxation. Failing to comply can result in penalties, delayed closings, or tax complications for both parties.
Resources from DVC Sales and DVCHARPTA.com
We provide a smooth process from offer to closing. Our title company partners and support staff will walk you through HARPTA withholding requirements and how to complete Form N-289 or file for a waiver when applicable. If you are a seller, www.dvcharpta.com explains exactly what to expect and how to prepare. We also link to www.dvcfirpta.com for sellers dealing with FIRPTA, the federal counterpart to HARPTA.
Why HARPTA Matters in DVC Resale
HARPTA can impact your net proceeds, closing timeline, and tax reporting. Buyers need to work with an experienced broker who understands how to handle these withholdings properly. At DVC Sales, we’ve facilitated thousands of DVC transactions and ensure that nothing gets missed—especially when Hawaii’s unique tax rules are involved.
No Buyer Fees and Total Transparency
DVC Sales never charges buyers a commission, and sellers only pay our clearly stated closing and escrow fees. If HARPTA applies, it will be fully disclosed in the closing statement and handled by the title company. With our guidance and the help of dvcharpta.com, sellers can navigate HARPTA confidently and avoid surprises at closing.