Walt Disney World Settles Lawsuits Over Hotels Worth Hundreds of Millions
Walt Disney World’s legal battles over property taxes have been an ongoing story for years, and this week brought a major update. Disney has settled six lawsuits and voluntarily dismissed five others with the Orange County Property Appraiser, wrapping up 11 property tax cases tied to some of its most famous hotels. The lawsuits involved Disney’s Grand Floridian Resort & Spa, Disney’s Polynesian Village Resort, and Disney’s Contemporary Resort, the three resorts that sit right along the monorail loop near Magic Kingdom.
These resorts are some of the most iconic places to stay at Walt Disney World. The Grand Floridian is Disney’s flagship Victorian-style hotel, the Polynesian brings South Pacific vibes to Seven Seas Lagoon, and the Contemporary is famous for the monorail gliding right through its A-frame building. Because they’re so close to Magic Kingdom and so popular with guests, their property values have a big effect on how much Disney pays in taxes.
Disney files lawsuits over hotel property values every year, and these cases have become a hot-button issue in Central Florida. Local teachers and Cast Members have spoken out against them, and Orange County Public Schools has even set money aside in case refunds are owed. Here’s a look at what was decided, what happens next, and why these lawsuits matter to the community.
Six Lawsuits Settled
Six of the lawsuits were settled, and those settlements set new “just values” for the Grand Floridian and the Polynesian for the years 2015 through 2020. Just value is the market value used as the starting point for property taxes.
Grand Floridian Just Values
- 2015: $356,290,945
- 2016: $371,533,205
- 2017: $395,326,403
- 2018: $416,030,191
- 2019: $371,153,374
- 2020: $395,365,019
Polynesian Just Values
- 2015: $155,623,556
- 2016: $161,051,633
- 2017: $164,885,974
- 2018: $168,034,456
- 2019: $176,097,099
- 2020: $158,692,884
The assessed values for both resorts remain unchanged.
No Change for the Contemporary
The settlements also determined that the just and assessed values for Disney’s Contemporary Resort should not change. So while the Grand Floridian and Polynesian received newly determined values, the Contemporary’s numbers stay the same.
Five Lawsuits Dismissed
The other five lawsuits were voluntarily dismissed. These cases covered:
- The Grand Floridian, Polynesian, and Contemporary for 2021, 2022, and 2023
- The Grand Floridian and Contemporary for 2024
The lawsuits were dismissed with prejudice. That means Disney chose to drop them, and they cannot be reopened.
What Happens Next
With the new values in place, there’s a set process for updating Disney’s tax bills.
- Certificate of Correction: Property Appraiser Amy Mercado must issue a Certificate of Correction to the Tax Collector and the Central Florida Tourism Oversight District within 30 days.
- Recalculation: The Tax Collector and the District will recalculate how much Disney owes based on the new values.
- Revised bills: If Disney owes more, revised bills will be sent within 30 days of receiving the Certificate of Correction.
- Payment: Disney then has 30 days from receiving the bill to pay without penalty.
If Disney is owed a refund instead, the Tax Collector and District will send a check to Disney’s attorney.
Disney Files These Lawsuits Every Year
These 11 cases are part of a much larger pattern. Disney challenges the Orange County Property Appraiser’s hotel values every year, arguing over how much its properties should be worth for tax purposes.
Several other cases were settled earlier this year, including lawsuits over:
- Disney’s Art of Animation Resort
- Disney’s Animal Kingdom Lodge
- Disney’s Wilderness Lodge
Why These Lawsuits Are So Controversial
Property taxes help fund local services, including public schools. That’s why Disney’s lawsuits have drawn pushback from the community.
In July, members of the Orange County Classroom Teachers Association and Disney Cast Members represented by UNITE HERE delivered petitions calling on Disney to drop the lawsuits.
Orange County Public Schools set aside $119 million to cover any refunds that might be owed to Disney. Superintendent Dr. Maria Vazquez said any money left over after the lawsuits could go toward teacher salaries. That’s a big reason why many locals are paying close attention to how these cases turn out.
Why the Monorail Resorts Matter
The Grand Floridian, Polynesian, and Contemporary are some of the most valuable properties at Walt Disney World. Their location on the monorail loop, just a short ride from Magic Kingdom, makes them some of the most in-demand hotels on property.
Because their values are so high, even small changes in how they’re assessed can make a noticeable difference in taxes. That’s why lawsuits over these resorts get extra attention from both Disney and the county.
What This Means Going Forward
With six cases settled and five dismissed, Disney has closed the book on 11 property tax lawsuits involving its monorail resorts. But since Disney files these challenges every year, this likely isn’t the end of the story.
For Orange County, the next steps will be recalculating taxes based on the new values and seeing whether Disney owes more or is owed a refund. For teachers and Cast Members who have pushed back against the lawsuits, the outcome could affect the money set aside by the school district.
What do you think about Disney’s property tax lawsuits?