Skip to Content

Hotel Ruling Could Save Disney World Millions in Taxes
July 01, 2020
The Walt Disney World Resort has won its latest legal battle that will save the company — and potentially many other big hotel owners — millions of dollars in property taxes.

The years-long dispute began in 2015 when the Orange County Property Appraiser increased its assessment of Disney’s Yacht & Beach Club Resort by 118%, resulting in an assessed value of nearly $340 million and an annual property tax bill of more than $4 million.

Disney challenged the assessment, and on June 19, 2020, Florida’s Fifth District Court of Appeal concluded that by following the popular “Rushmore method” of appraisal, the property appraiser “impermissibly included the value of Disney’s intangible business assets in its assessment.” The court ultimately concluded that the widely used Rushmore methodology violates Florida law.

This decision will likely prompt other hotel companies to file appeals in an attempt to receive similar treatment. According to the Orlando Sentinel, Disney is already challenging the appraisals of 10 of its other hotels.

Although a huge win for the lodging industry, the ruling will negatively impact the tax rolls for local governments and school districts, as property taxes are their greatest revenue source.

It is unclear whether the appraiser’s office will request a rehearing or appeal to the Florida Supreme Court. If the ruling stands, we expect to see many other hotel owners challenging their tax appraisals.
Related Practices
Real Estate Development Government Law & Consulting Real Property Litigation
Related Industries
Real Estate
©2026 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.