Walt Disney World has filed 13 lawsuits against Orange County Property Appraiser Amy Mercado, claiming their 2024 property taxes were too high.
Walt Disney World Property Tax Lawsuits
In addition to Mercado, Disney named Orange County Tax Collector Scott Randolph and Executive Director Jim Zingale of the Florida Department of Revenue as defendants in the suits, filed with the Ninth Judicial Circuit Court of Florida.
The properties listed in the lawsuits were assessed at almost $3 billion. Disney was required to pay property taxes of over $98 million this tax year.
Disney and other Central Florida hospitality businesses file such lawsuits every year. This time last year, Disney filed 12 suits. The filings cover various Walt Disney World Resort properties.
Disney previously won a lawsuit regarding Disney’s Yacht & Beach Club Resort property taxes. Judge Thomas W. Turner wrote in his September 2024 decision that the appraiser’s assessment of the resort for tax years 2015 and 2016 was “unconstitutional and invalid” and that the “appraiser substantially increased the amount of Disney’s tax bill by unlawfully including value attributable to Disney’s intangible property.” That case has gone to mediation.
Attorney Kevin Roe, who specializes in property tax challenges and is not involved in these lawsuits, told Orlando Business Journal that Judge Turner’s decision rejects the “Rushmore Approach,” which includes income from operations like restaurants and shops in the property’s valuation, inflating the value of the real estate.
“The proper way to value these properties is to figure out what the income would be for the rental value of that space,” Roe said, “and that rental value would be the income that you capitalize as opposed to the retail sales.”
The Walt Disney World Swan and Dolphin, which are on Walt Disney World property but operated by Dolphin Hotel Associates, also have ongoing lawsuits against Mercado. The properties were assessed at $433.8 million in 2022 and their taxes totaled about $12.2 million.
Three Universal Orlando Resort hotels — The Hard Rock Hotel, Loews Royal Pacific Resort, and Loews Portofino Bay Hotel — are pursuing lawsuits against Mercado for similar reasons.
The lawsuits all regard the interpretation of section 193.011 of Florida Statute Title XIV: Taxation and Finance. The statute aims to make property assessments fair and consistent. Appraisers are required to take into consideration the cash value of the property, the “highest and best use” of the property, location, size, cost, condition, income, and net proceeds of the sale of the property.
Here is a breakdown (via Orlando Business Journal) of how the properties Disney listed in their lawsuits, how they were assessed, and the taxes Disney paid:
- Magic Kingdom: assessed at $565.2 million, $15.04 million in taxes.
- EPCOT: assessed at $713.6 million, $19.5 million in taxes.
- Disney’s Hollywood Studios: assessed at $583.1 million, $15.5 million in taxes.
- Disney’s Animal Kingdom: assessed at $464.5 million, $12.29 million in taxes.
- Blizzard Beach: assessed at $69.8 million, tax amount unspecified.
- Typhoon Lagoon: assessed at $50.4 million, $1.33 million in taxes.
- Disney’s Yacht & Beach Club Resort: assessed value unspecified, $9.9 million in taxes.
- Disney’s Saratoga Springs Resort & Spa: assessed at $337.5 million, $8.9 million in taxes.
- Disney’s Wilderness Lodge: assessed at $85.6 million, $2.37 million in taxes.
- Disney’s Caribbean Beach Resort: assessed at $226 million, $6.1 million in taxes.
- Administrative areas: assessed at $66.6 million, $1.9 million in taxes.
- Magic Kingdom parking lot: assessed at $63.3 million, $1.69 million in taxes.
- Walt Disney World Speedway (Indy 200 race track): assessed at $8.48 million, $224,499.48 in taxes.
- Ticket & Transportation Center: assessed at $27 million, $715,239.02 in taxes.
- Magic Kingdom bus drop-off and boat docks: assessed at $20.7 million, $548,100.04 in taxes.
- Car Care Center: assessed at $9.59 million, $273,603.31 in taxes.
- Team Disney Building and Casting Building: assessed value unspecified, $1.9 million in taxes.
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would orange county even exist if not for di$ney? it is time for government to quit picking our pockets to support their dreams!