What Does Repealing the Reedy Creek Improvement Act Mean to Disney Vacation Club Members
I’m sure many if not all of you have been following along with the Governor of Florida dissolving the Reedy Creek Improvement District. If this does in fact happen, Disney will lose all of its self governor rights. Meaning Disney won’t be able to act with the same authority and responsibility as a county government as they have been doing since 1967.
So what does this mean for Disney Vacation Club Members? DVCNews.com has broken it down for us.
Specific to Disney Vacation Club, members would appear to be headed for a reduction in property tax liability should Reedy Creek Improvement District be dissolved in June 2023. Taxes on the Walt Disney World-based properties came in at a millage rate of 27.5 in 2021, of which just under half—13.57 mills—was earmarked for Reedy Creek Improvement District. See Wil Lovato’s prior story for DVCNews with details on the tax breakdown.
Using one resort to illustrate, the 2021 tax assessment to owners of Bay Lake Tower at Disney’s Contemporary Resort was $8.514 million or $1.48 per point. Of that, approximately $4.202 million or $.73 per point was used to fund Reedy Creek Improvement District. That obligation appears set to tend in June 2023.
The same percent applies to all other DVC resorts at Walt Disney World, with the RCID assessment representing just under half of their ad valorem taxes.
Without Reedy Creek Improvement District, DVC owners may see a nearly 50% reduction in their property tax liability. That is unlikely to be the end of the story, given that it leaves Orange and Osceola Counties with a $163 million budget shortfall to overcome. A combination of increasing taxes on all residents and slashing services in the Walt Disney World area are the most direct ways of closing the gap. Florida officials may be able to construct some manner of maintaining the RCID tax structure while still limiting Disney’s control over the region. If they have some specific plan in mind, it has not yet been outlined.
So DVC owners may see this as a good thing as far as their contracts and taxes on the annual dues go, but only time will tell.
Governor Ron DeSantis does not want Disney to have all of the rights and special privileges it currently has.
“The state should be governed by the best interests of the people,” he said. “You should not have one organization that is able to dictate policy in all these different realms, and they have done that for many, many years. And if that stops now, which it should, that would be a good thing for Florida.”
DeSantis goes on to say “I would say any special privileges that are in law I would like to get rid of generally,” “But I think in this particular case with Disney, I just don’t think you have very many people in the legislature anymore who are going to be able to defend a lot of what has been done over many, many years to have them almost govern themselves over so many things.”
The Reedy Creek Improvement District covers 175 lanes of highway, 67 miles of waterways, Disney’s four theme parks and 2 water parks,the cities of Bay Lake and Lake Buena Vista, an environmental science laboratory, an electric power-generating and distribution facility, a natural gas distribution system, water and wastewater collection and treatment facilities, a solid waste and recyclables collection and transfer system and over 40,000 hotel rooms and hundreds of restaurants and retail stores.
Stay tuned as we follow this situation closely.
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Source: Fox Business