Tax wars - did 'we' win?

[Pluto777]

An article I saw on DVC:

https://dvcnews.com/index.php/dvc-p...-county?utm_source=dlvr.it&utm_medium=twitter

The part I couldn't understand was near the end of the article:

"...It is important to note that Disney Vacation Club Condominium Assocaitions are separate legal entities from their sister hotels. Although Disney won an important victory in this case related to the Yacht and Beach Club, it is not known if owners at Disney's Beach Club Villas will realize any benefit..."

Anyone know why that is?

 

[aoconnor]

DVC units are condominiums which are treated as separate fee simple estates. Technically each unit is assessed for taxes individually, but in reality a uniform value per square foot is probably applied across each unit. If they applied the same relative value to the DVC units as the hotel side then there may be a reduction, but that's probably unlikely as the DVC units don't contain retail or F&B and are therefore less valuable.

 

[erionm]

I don't believe that DVD was included as a plaintiff on the Yacht/Beach lawsuit. As @aoconnor noted in the PP, BCV doesn't have any merchandise or Food/Beverage in the actual BCV building. So it's quite possible that any reduction will not affect the BCV valuations.

DVD is included as a plaintiff on at least 3 tax related lawsuits regarding the BoardWalk Resort (per the linked article).

 

[disneynutz]

Even if the valuation goes down, the tax rate can increase. What I find interesting is that Reedy Creek gets some of the tax money. Who is Reedy Creek controlled by? Disney!

Bill

 

[supersnoop]

I wonder...

The basis of the suit was that the valuation method was inappropriate. That method was based on revenue. Since DVC doesn’t necessarily have any revenue after the initial sale, perhaps that method wasn’t being used to start with.

 

[CarolMN]

Until all of the appeals are exhausted, nobody "wins" anything. Could take years to settle, IMO.

 

[miTnosnhoJ]

I wonder...

The basis of the suit was that the valuation method was inappropriate. That method was based on revenue. Since DVC doesn’t necessarily have any revenue after the initial sale, perhaps that method wasn’t being used to start with.

i agree. Unlike hotel rooms, there is a readily available market for valuing DVC. Retail sales for new resorts, and resale’s for older resorts. Unfortunately, based on this criteria, VGF might go up substantially. I suspect others will too.

 

[OKW Lover]

What I find interesting is that Reedy Creek gets some of the tax money.

They get tax money to fund "county" services. They don't make a "profit" from this tax money.

 

[supersnoop]

They get tax money to fund "county" services. They don't make a "profit" from this tax money.

True, but they fund the county sheriff department, which provides an awful lot of security and services for Disney. I’m sure there’s a fine line between what they can off-load onto the county and what they have to pay for out of operations.

 

[disneynutz]

They get tax money to fund "county" services. They don't make a "profit" from this tax money.

They set the tax rate, they set the budget, they set their salaries and bonuses and fees paid by Disney to Reedy Creek. I wouldn't think that profit comes into it but they sure can work the numbers to their advantage and Disney is a master at doing so.

Bill

 

[icc2515]

I wouldn't think that profit comes into it but they sure can work the numbers to their advantage and Disney is a master at doing so.

You are 100% right on this. Like when they added a 5th bed to BWV studios. It wasn't because they were being nice to the DVC members with 5 guests. I notice that there are a lot more DVC resorts with good old thermostats than the new digital, we won't let you set the temp below uncomfortably warm even though you are paying $500+ for this room, ones.

 

[DenLo]

They get tax money to fund "county" services. They don't make a "profit" from this tax money.

True, but they fund the county sheriff department, which provides an awful lot of security and services for Disney. I’m sure there’s a fine line between what they can off-load onto the county and what they have to pay for out f operations.

I am pretty sure that Disney pays money to the county for those sheriff's services. Communities and companies do that where we live in Texas, just like airports and sporting venues pay for sheriffs or police services.

Plus Disney pays for the Reedy Creek infrastructure, streets and highways with all those taxes.

 

[The Jackal]

True, but they fund the county sheriff department, which provides an awful lot of security and services for Disney. I’m sure there’s a fine line between what they can off-load onto the county and what they have to pay for out of operations.

I don’t think the sheriffs are there on straight time. Disney is paying them to be there for everyone’s safety.

 

[DenLo]

I don’t think the sheriffs are there on straight time. Disney is paying them to be there for everyone’s safety.

I expect you are the one that has it right. The policeman at our airports in Houston are off duty police who are picking up addition money by working for the airport. Unlike those sheriffs at WDW, our policeman are still working for the city and the work still counts towards their retirement. So for Orange County it would work out better if they are paid directly by Disney but representing the county if anything criminal occurs.

 

[wdrl]

The DVC resorts of Old Key West and Saratoga Springs are within the jurisdiction of the City of Lake Buena Vista. In its FY 2018 budget, payment to the Orange County Sheriff for the line item of "Public Safety" is, by far, the largest expenditure at $3,798,963. Lake Buena Vista's total operating revenue in 2018 is projected to be $4,108,429.

The cost of "Public Safety" has increased significantly in recent years. In its FY 2016 budget, the City of Lake Buena Vista allocated only $2,186,361 for this budget line item.

The City of Bay Lake, which is home to the other eight DVC resorts, has budgeted $11,984,016 in FY 2018 to pay the Orange County Sheriff for "Public Safety." Like its sister city, Public Safety is, by far, the single most expensive item in the City of Bay Lake's budget that has $14,371,861 in total operating revenue for FY 2018.