Two things you can depend on yearly from Disney. The first is price increases at the Walt Disney World Resort. The second is Disney suing to fight their property tax bill. Disney has been doing this for almost ten years now. Finally, a case from 2016 has ended in a win for them that could result in up to $80 million being refunded from Orange County Schools.
In 2016 Disney filed a lawsuit over their property tax assessments for The Yacht and Beach Club Resorts near EPCOT, claiming that their bill was raised 118%. At the time, they complained that they were appraised for their brand name, which was not legal.
Disney charges ridiculous amounts of money for resort hotel rooms based on the “Disney” brand, but I digress.
When all of this was going on back in 2016, Rick Singh had used an appraisal method that the state later changed. Since 2016 the Walt Disney Company still complains annually about their tax assessment, even when the methods have been changed and they haven’t been billed on their “brand.”
How does Disney’s win cost the schools up to $80 million dollars?
The tax money collected goes to fund things like the local school district. Judge Thomas W. Turner ruled that the assessment was “unconstitutional and invalid.” saying,
“The appraiser substantially increased the amount of Disney’s tax bill by unlawfully including value attributable to Disney’s intangible property.”
As a result, the Orange County School District would have to reimburse Walt Disney World for $2 million. However, Disney could then use this ruling to challenge all its assessments for that time frame, which could cost the school district $80 million.
The school has already set aside the funds, but Orange County Tax Collector Scott Randolph said that $80 million would be enough to fund almost three new elementary schools.
It’s unclear if Disney will try to take all that money, but given how litigious the company tends to be, it wouldn’t surprise me. Just last December, they filed several suits fighting their assessment on all four theme parks, several hotels, and other property.
How much did they spend on their campaign to keep Nelson Peltz and Jay Rusulo off the Walt Disney Board?
How much did they spend suing the Florida Governor and members of the CFTOD board over them losing Reedy Creek and trying to grant themselves power before the improvement district was restructured? Then, they had to settle anyway.
They draw the line at paying for their “brand,” for which they charge guests a premium, resulting in the schools losing out.
Not that it will matter. All the assessments could be done in a way they like, and Disney would likely still fight them while charging guests more.
What do you think? Comment and let us know!
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