The Walt Disney Company is no stranger to lawsuits.
We recently saw Disney dish out $9.5 million to Disneyland Magic Key Passholders after settling a lawsuit, and there’s another wrongful death lawsuit Disney is involved with due to a possible allergy-related death at Disney World. It’s something that businesses like Disney deal with all the time, but this time, the latest string of lawsuits has come from the House of Mouse itself.
Walt Disney Parks and Resorts filed 13 lawsuits against Orange County Property Appraiser Amy Mercado on December 13th, according to the Orlando Business Journal. The suits allege that she has “significantly inflated” the value of Disney’s properties for the 2024 tax year. Similar lawsuits have been filed by several other local properties including Universal Orlando Resort against Mercado, though the cases are unrelated.
While Mercado is the main defendant named in the lawsuits, Orange County Tax Collector Scott Randolph and Executive Director Jim Zingale from the Florida Department of Revenue have also been named as defendants. Each filing covered multiple Disney properties including theme parks, resorts, administrative areas, and more.
The cases will be heard in the Ninth Judicial Circuit of Florida and could pose a significant challenge to the county’s property tax system as it pertains to local government funding — especially for local public schools. This isn’t the first time Disney has filed suits like this, as others have been filed in the past for similar reasons.
A September 23rd ruling from appellate Judge Thomas Turner ended an eight-year legal battle after the judge ruled in favor of Disney in a Yacht & Beach Club property assessment case.
In his ruling, Judge Turner said, “The appraiser substantially increased the amount of Disney’s tax bill by unlawfully including value attributable to Disney’s intangible property.”
Kevin Roe, an attorney who specializes in property tax challenges in New York, said the judge essentially rejected the “Rushmore Approach” to valuation. According to the Journal, “The controversial method includes income from operations (like restaurants and merchandise shops) in the valuation.”
Disney’s filings lay out its case by individual property, which combined, were assessed at just under $3 billion. The company was required to pay property taxes of more than $98 million in 2024, court records show. Disney is requesting a resolution similar to the decision made by Turner earlier this year.
But, the judges who hear these new cases will not be able to use Turner’s logic, as his decision has been appealed and since gone to mediation.
As far as other local property tax cases are concerned, here are just some of the hotels involved:
- The Hard Rock Hotel, Loews Royal Pacific Resort and Loews Portofino Bay Hotel — three Universal Orlando Resort hotels: The three hotels were assessed in 2021 at a combined $467.5 million, with total property taxes paid at more than $3.5 million.
- Hilton Orlando Bonnet Creek and Waldorf Astoria Orlando: The two hotels were assessed in 2021 at almost $300 million, with total property taxes paid at $4.7 million.
- Renaissance Orlando at SeaWorld: The hotel was assessed in 2023 at $136.8 million, with total property taxes paid at almost $2.3 million
- JW Marriott and Ritz-Carlton Grande Lakes: The two hotels were assessed in 2022 at a combined $415.2 million, with total property taxes paid at $6.5 million.
- Rosen Shingle Creek Resort: The hotel was assessed in 2022 at $227.7 million, with total property taxes due at over $3.6 million.
- Marriott World Center: The hotel was assessed in 2022 at $317.6 million, with total property taxes due at over $5 million.
- Walt Disney World Swan and Dolphin: The two properties in 2022 were assessed at a combined $433.8 million, and the property’s due taxes came in at around $12.2 million.
We’ll continue to monitor this situation as the suits were just filed and updates are sure to follow. In the meantime, make sure you stay tuned to the Disney Food Blog as we keep an eye on the latest theme park news from Disney and more!
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