Gabrielle Russon
Disney is continuing its annual holiday tradition of suing over its property taxes.
Walt Disney Parks and Resorts filed about a dozen lawsuits in Orange Circuit Court to contest the assessments done at its four major theme parks, as well as several hotels, the water parks and other properties.
Disney has successfully argued in court that a hotel’s past property assessments were unfair. A Judge earlier ruled that property assessments were “unconstitutional and invalid” for Disney’s Yacht and Beach Club Resort in 2015 and 2016.
“The appraiser substantially increased the amount of Disney’s tax bill by unlawfully including value attributable to Disney’s intangible property — namely the value of the Disney brand, its managerial skills and workforce,” the Orlando Sentinel reported in September, noting Disney’s victory for the single hotel could have bigger implications on its other ongoing tax lawsuits.
In the latest round of complaints filed Friday, Disney accused Property Appraiser Amy Mercado of improper appraising methods to come up with assessments that Disney claimed did not represent the just value.
Disney already paid the 2024 tax bills and is asking for those bills to be canceled so the Mouse can get reimbursed and be issued new tax bills. Disney doesn’t say in court documents what it thinks the right amount should be.
The Magic Kingdom — the world’s No. 1 visited theme park — has a market value of $577 million and an assessed value of $565 million, according to one of Disney’s lawsuits. Disney paid $14.4 million in taxes for the Magic Kingdom this year.
Meanwhile, Epcot’s market value was about $739 million, with an assessed value of nearly $714 million that came with a $18.3 million tax bill.
The market value for Hollywood Studios, home of Star Wars land, was about $593 million. It had an assessment value of $583 million and Disney paid $14.9 million in taxes
And Animal Kingdom’s market and assessed value came in at $464 million with a $11.8 million tax bill.
“As we have commented in prior years, these properties have been the subject of litigation since 2015 and were inherited by Ms. Mercado when she took office in 2021. It is common practice for a plaintiff to file suit in subsequent years to preserve their litigation rights,” Mercado’s General Counsel, Ana Torres, said when reached for comment Monday.
Many of Disney’s hotel competitors in Central Florida have filed similar property assessment lawsuits against Mercado this year, arguing the appraisals are incorrect.
For instance, Marriott-owned Renaissance Orlando at SeaWorld is contesting its $50 million tax bill.
“The assessments do not represent the just value of the Subject Property as of the lien date because they exceed the market value and therefore violate article VII, section 4 of the Florida Constitution,” according to the lawsuit filed in May by Sunstone Westwood LLC regarding the hotel, which was assessed at $145 million.
And Universal Orlando’s three properties run by Loews Hotel are also fighting over its nearly $11 million tax bill this year. The Royal Pacific Resort’s assessed value was listed at $233 million, Portofino Bay Hotel at $173 million and Hard Rock Hotel at $160 million, according to the lawsuit filed in May.
Tampa law firm Hill, Ward and Henderson is handling the litigation for Disney’s lawsuits, as well as for the Universal hotels and hotel next to SeaWorld Orlando. The lawyers did not immediately respond for comment Monday afternoon.
The Walt Disney Co.’s Experiences division, which includes the theme parks, posted nearly $1.7 billion in operating income in the most recent quarter, the company said in November.
The Central Florida Tourism Oversight District’s General Counsel, Daniel Langley, said last year that Disney is aggressively fighting its property taxes, which is hurting the School District.
“I received public records from the Orange County Tax Collector indicating that Disney’s property assessment lawsuits could cost our Orange County Public School System anywhere between $52 million and $105 million for just the seven years that they’re suing on,” Langley said at a CFTOD meeting in April 2023.
“These impacts to the public school system have not deterred Disney from attempting to get large tax refunds from the school system from Orange County or from this District. In addition to potentially triggering a large tax refund, a lower property assessment would result in lower tax collection in future years. We’re not talking about a one-time hit. We’re talking about a hit for years to come.”
At the time Langley spoke, CFTOD’s relationship with Disney was hostile. Both Disney and CFTOD sued each other at one point. Gov. Ron DeSantis targeted Disney in a culture war and the Republican-controlled Legislature passed a new law to let DeSantis appoint members for CFTOD, which had previously been in control by Disney. The special taxing district CFTOD provides the infrastructure, including roads and emergency services, for Walt Disney World Resort.
CFTOD Chair Martin Garcia, an outspoken critic of Disney, said last year that Disney’s governing board sided with Orange and Osceola counties in the Disney property tax litigation.
The District sent out a statement a year ago when Disney sued over its 2023 property taxes that said, “This is just the latest in Disney‘s decades-long campaign to avoid being a good neighbor and paying its fair share.”
However, Garcia has since left the board and the animosity between CFTOD and Disney died down. Disney and CFTOD settled the litigation this year and vowed to work together.
CFTOD did not respond to a request for comment Monday on its latest stance. The school system declined to comment Monday because it’s not a party to Disney’s tax lawsuit.
Disney declined to comment for this story, but the company regularly touts its value to the community for being an economic driver and giving donations to local groups.
Historians and Disney fans would certainly agree: Disney put Orlando on the map.
Millions of people who visit Disney World every year fly in to Orlando’s airport, stay in hotels and eat at restaurants which generates economic development — including for the tourism development tax on hotel rooms that Orange County uses to fund entertainment complexes like the Dr. Phillips Center for the Performing Arts and the Orange County Convention Center. Disney is also considered the largest single-site employer in the country so tens of thousands of people get their paychecks from the Mouse.
“Disney is an economic catalyst to the state of Florida generating billions in economic activity, either directly, or indirectly through its supply chain and the spending of employees,” said Adam Sacks, President of Tourism Economics when Disney funded a study that found it has a $40 billion impact on Florida’s economy. “Disney is also vital to the funding of public services, as it generated taxes of $6.6 billion in 2022, including state and local taxes of $3.1 billion.”
