NEWS: DeSantis' Reedy Creek Board Accuses Disney of Bribery and "Egregious Corporate Cronyism"

Florida Governor Ron DeSantis’ personally appointed board of the Central Florida Tourism Oversight District is not quite ready to give up the fight against Disney.

©Central Florida Tourism Oversight Board Livestream

Since DeSantis appointed the new Central Florida Tourism Oversight District Board (CFTOD), we’ve seen multiple changes in the district that governs Disney World, including a mass exodus of employees, the removal of certain benefits, and a hefty tax bill to boot. Now, a new report from the CFTOD is accusing Disney of previously providing benefits that were “akin to bribes.” Here’s what we know.

The Central Florida Tourism Oversight District has released a new report accusing Disney of previously providing employee benefits they claim were “akin to bribes.” Outside experts hired by the CFTOD examined past practices of the former Disney-controlled Reedy Creek Improvement District (RCID).

Disney vs. DeSantis

The main practice in question is Reedy Creek’s purchasing of Disney World annual passes for employees and retirees, something that has been a major factor in RCID employee life for years.

Following the Reedy Creek Improvement District’s dissolution earlier this year, employees of the district lost perks like park tickets and covered discounts. After backlash over this change, the CFTOD approved stipends for employees instead.

©Central Florida Tourism Oversight Board | Glen Gilzean

“For years, the company treated district employees like Disney employees by, for instance, providing complimentary annual passes and steep discounts—benefits and perks that were akin to bribes,” the report says.

The report also indicated that employees should have had to pay taxes on the cash value of the passes — leaving them owing the government a whopping $2 million in back taxes.

“(Reedy Creek) should have treated that fringe benefit as part of the employee’s taxable income and either withheld taxes from the employee’s paychecks based on that value or paid such taxes on the employee’s behalf,” the report continues.

Magic Kingdom

It’s because of this, per the report, that Disney-operated RCID was “the most egregious exhibition of corporate cronyism in modern American history.”

As far as the outstanding tax bill goes, the responsibility could fall on both the district and its employees, who could face tax implications if the IRS finds taxes were never paid on the Disney World park passes. If the resolution that is being worked out with the IRS results in the district paying the tax liability, that means the taxpayers would be footing the bill. It should also be noted that Disney and its affiliates pay about 86% of the district’s property taxes currently.

EPCOT

A hearing is scheduled for next week in the federal lawsuit against DeSantis and the CFTOD. We’ll be keeping on eye on this situation and the latest news, so be sure to stay tuned to DFB for more.

For the latest updates on the Central Florida Tourism Oversight District and Disney World, check out the links below:

And don’t forget to stay tuned to DFB for more Disney news.

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