When a Walt Disney World resort in Orange County, Florida, received an appraisal that appeared excessive, Walt Disney Parks decided to challenge the number in court. RealAdvice founder Todd D. Jones and colleague Mike Mard prepared and presented a counter valuation, which separated $161.9 million of non-taxable intangible assets inside the $337 million resort. The courts agreed with the separation, resulting in more than $4 million a year in property tax savings for the resort.
The county’s assessment of a Disney resort included intangible value that wasn’t real estate. Florida law taxes real property, “land, buildings, fixtures, and all other improvements to land,” and bars counties from taxing intangible personal property. The question was how much of the resort’s value was taxable real estate.
RealAdvice founder Todd D. Jones and colleague Mike Mard prepared and presented the valuation, documenting $161.9 million of intangible assets inside the $337 million resort. The allocation saved more than $4 million a year in property tax.
The trial court, the Ninth Judicial Circuit in Orange County, ruled on July 3, 2018. The appellate decision is Singh v. Walt Disney Parks and Resorts U.S., Inc., 325 So. 3d 124 (Fla. 5th DCA 2020).
The Florida Department of Revenue approved our methodology in 1991, and it was vetted in federal bankruptcy court in 2022. Our team teaches it through continuing legal education (CLE) programs for The Florida Bar.
Courts upheld separating a Disney resort’s intangible value from its taxable real estate for Florida property tax. The appellate decision is Singh v. Walt Disney Parks and Resorts U.S., Inc., 325 So. 3d 124 (Fla. 5th DCA 2020).
The allocation saved more than $4 million a year in property tax on that property.
The rulings interpret Florida law. Other states have their own rules, and courts elsewhere, including in California, have also excluded intangible value from assessments.