Higher taxes coming?

[zavandor]

Today DeSantis said:

The board will also look into property values, as Disney previously appraised its own land values and thus would have an incentive to assess its own values lower. The board will look into appraising those independently.

Will this apply to DVC resorts as well?

 

[dioxide45]

Today DeSantis said:

The board will also look into property values, as Disney previously appraised its own land values and thus would have an incentive to assess its own values lower. The board will look into appraising those independently.

Will this apply to DVC resorts as well?

I beleive the properties are appraised by the Orange and Osceola County tax collectors. Something that is more likely to impact taxes will be in 2025 when reserve funding changes kick in under Senate Bill 4-D.

 

[tjkraz]

Today DeSantis said:

The board will also look into property values, as Disney previously appraised its own land values and thus would have an incentive to assess its own values lower. The board will look into appraising those independently.

Will this apply to DVC resorts as well?

I haven't watched all of his comments today but taking your post at face value, I don't think there's much truth to that. Disney (and other property owners) famously battled with Orange County appraiser Rick Singh as he applied his own methods to drive up property values and taxes. This occurred over roughly 2016-2019. Disney won several court battles along the way. Singh failed in his reelection bid in 2020 and the new appraiser quickly came to a settlement with Disney and others.

DeSantis is determined to make a nuisance of himself and some of that may trickle down to DVC members. But for the most part, I believe a couple things are true:
- State and county taxes would be applied to Disney at the same rate as every other taxpayer
- Monies taxed specifically for the Disney district have to actually be spent on appropriate projects within the district. If Tourism Oversight board ends up having some actual authority (still TBD), and wants to do things like build more roads or increase emergency services funding, that may fall within their rights. And DVC owners would pay a share. But they can't arbitrarily extort money from Disney and route it to other pet projects unrelated to the Disney district.

EDIT: One other thing that conceivably could cause taxes to rise is if the Tourism Oversight board enters into a protracted legal battle with Disney. Disney (+ our dues) effectively funded RCID and now the CFTOD. If the Oversight District raises its budget to cover legal costs, district taxes would go up. In theory, Disney (+ DVC) could end up paying the lawyers fighting against Disney. I'm not entirely clear on whether the governor / state / board actually has power to make things play out in this manner, or if some other entity would have to put up monies. Willing to listen if others know more.

 

[Sandisw]

Gentle reminder to keep this thread only about the impacts to DVC and taxes, and not get into topics that could be seen as political remarks.

 

[mz-s]

Well if taxes go up, yes of course our dues will go up.

 

[supersnoop]

Today DeSantis said:

The board will also look into property values, as Disney previously appraised its own land values and thus would have an incentive to assess its own values lower. The board will look into appraising those independently.

Will this apply to DVC resorts as well?

It won't be that dramatic, because that's not how property taxes work. Disney controls over 60% of the taxing districts that affect it. The taxing district figures out how much money they need, and then calculates the rate necessary based on the assessed value. If the values double, the rate gets cut in half. It's not like RCID is suddenly going to tell Disney that they have to have more fire stations or roads; Disney has done well to properly fund their own supporting infrastructure. That's what I mean by "controls;" even if someone else is in charge of the district, it still pays for the same infrastructure.

Where it could cost us more is for the districts other than RCID, if Disney has been paying a disproportionate lower amount to the county, schools, or library district. So, if the appraised value for Disney property DOUBLED, it would increase the tax burden by about 25%.

 

[OKW Lover]

if Disney has been paying a disproportionate lower amount to the county, schools, or library district.

I didn't think there was a differentiation in property taxes for what services are provided.

 

[supersnoop]

I didn't think there was a differentiation in property taxes for what services are provided.

Here are the current taxing districts that cover Disney property. I've highlighted the ones that Disney "controls," which are the majority. If the assessed value increases, those rates would simply drop and the net effect would be the same. The other taxing districts; the county, schools, library, and conservation districts, would likely stay the same (or drop only slightly), resulting in Disney paying more for those line items, but it would be very subtle.

 

[OKW Lover]

Here are the current taxing districts that cover Disney property. I've highlighted the ones that Disney "controls," which are the majority. If the assessed value increases, those rates would simply drop and the net effect would be the same. The other taxing districts; the county, schools, library, and conservation districts, would likely stay the same (or drop only slightly), resulting in Disney paying more for those line items, but it would be very subtle.

View attachment 754177

Well, I guess I still don't understand. I thought the original point was that Disney would no longer pay for certain parts of the parts tax. But I don't believe that's the case. The entire tax is still due - right?

On a personal basis, I live in Orange County. I don't have the option not to pay the part of my taxes that pertains to schools even though I don't have children in the school system.

 

[supersnoop]

On a personal basis, I live in Orange County. I don't have the option not to pay the part of my taxes that pertains to schools even though I don't have children in the school system.

The entire purpose of the RCID, and, for all intents and purposes, the City of Lake Buena Vista, is for Disney to pay taxes to fund infrastructure, maintenance, and operations that specifically benefit themselves. The Reedy Creek Fire Department is funded entirely by the taxes that Disney pays and services only the area that Disney owns. The same goes for roads, water, and sewer utilities.

It's kind of like if you were able to form your own school district that covered just your own house, and then voted for yourself, set your own tax rate, and paid yourself to run your own school. The corollary would be, like in your situation where you don't have children in the school system, you could choose what services to provide and how much to spend, therefore controlling how much you pay in taxes to that entity.

In Disney's situation, if the new district, controlled by state appointees, chooses to no longer fund Disney infrastructure, then they'll no longer collect taxes to pay for it. If they no longer fund the fire department, they won't collect taxes to pay for it.

If the appraisal on Disney property increases dramatically, that doesn't change the amount of money required to pay for roads or fire fighters. Disney will still need to pay the same amount of money to fund those services. If the property is worth $100 and the district needs $2, then the rate is 2%. If the property is worth twice; $200, the district still needs $2, so the rate drops to 1%. These districts account for 60% of Disney's tax burden, so messing with appraisals won't change the amount Disney pays to those districts because they already control expenses.

The other 40% of their tax burden could be impacted if appraisals increase, but how big of an impact could that really make? What's the likely increase in value; could it double, or would it be more likely to increase 10%? It cold certainly cause an increase in taxes, but not a huge change. Between the likelihood of a change, and the impact of a change, it's not something I'd waste energy worrying about.