It takes a lot of land to house Cinderella’s castle, Harry Potter World, and Epcot’s 11-country World Showcase in Florida—and a Mary Poppins-sized purse to pay taxes on all of it.
Over the past couple of years, Disney’s property taxes have shot sky high—and so have the number of lawsuits theme parks and other businesses have filed against the county’s property appraiser.
In the past, consultants at Orlando’s famous theme parks employed some creative methods to cut tax bills. Placing cows on undeveloped land in order to claim an agricultural exemption was one such trick.
But new appraiser Rick Singh isn’t buying the shenanigans. He says property values for the theme parks, resorts, and other large commercial properties are set by a team of almost two dozen seasoned appraisers. It’s “the most complex tax roll in the world” according to Singh.
The taxman also says bills go up not only from rising property values but also from new construction.
Magic Kingdom visitors know building there is constant. This year, Disneyworld will welcome a new raft attraction, several new restaurants, and an expanded pool at one of the on-site hotels.
Still, Walt Disney Parks and Resorts officials say Singh’s office isn’t using proper appraisal methods. They call the increased taxes “unreasonable and unjustified.”
Just how much are taxes rising? The company’s tax bill from Singh’s office jumped from $84.5 million (2014) to $97.2 million (2015) to $102.6 million (2016). That’s an average increase of about 10% a year.
Doug Head is chairman of an area watchdog group. He says Singh is on target with upcharging Disney. “He clearly figured out there is a lot more value than is properly being reflected,” Head says. “People accustomed to the way business was done weren’t happy.”
“It’s a matter of being fair and equitable,” Singh says. “If the single mother who is working two jobs has to be held accountable to pay her fair share, so should everybody else.”
Taxes are never popular. In Bible times, tax collectors were despised for their dishonesty. But a fair tax is necessary for operating communities. Romans 13:7 directs believers to, “Pay to all what is owed to them: taxes to whom taxes are owed.”
Disney is taking their complaint to court. Singh’s office will stand its ground. Who’s right? It will take a wise judge to wade through the murky tax law waters. But one thing is crystal clear: Ticket prices to the Magic Kingdom are headed nowhere but up.
