News Reedy Creek Improvement District and the Central Florida Tourism Oversight District

[mmascari]

There should be a value assigned to them. Using my company vehicle example in my previous post, the amount is either $3 dollars a day or keeping the mileage log and any none company miles are at .655 cents per mile.

Because you're giving "use of the car" and not "the car" to the employee. You're effectively saying it costs the company $3 a day to provide that use. So, that's the taxable benefit to the employee.

If you gave them the car. Not just to use, but to keep, transferred ownership. Then, the cost to the company would be the cost to acquire the car. That full cost of the car would be the taxable benefit. At least in years employees got new cars.

In this case, the District gave employees a pass. I've been assuming they bought a pass and then transferred that to the employee. In that model, the cost of the pass would be the taxable benefit. If instead, Disney billed them as it was used, so the cost was directly usage based, then the taxable benefit would also be usage based.

Assuming this is a taxable benefit, which does seem to be the current case.

If the employee derives more value out of the pass than that cost, it's a good deal for them and even if taxed would be tax advantageous.

 

[PsylockeSmythe]

Because you're giving "use of the car" and not "the car" to the employee. You're effectively saying it costs the company $3 a day to provide that use. So, that's the taxable benefit to the employee.

If you gave them the car. Not just to use, but to keep, transferred ownership. Then, the cost to the company would be the cost to acquire the car. That full cost of the car would be the taxable benefit. At least in years employees got new cars.

In this case, the District gave employees a pass. I've been assuming they bought a pass and then transferred that to the employee. In that model, the cost of the pass would be the taxable benefit. If instead, Disney billed them as it was used, so the cost was directly usage based, then the taxable benefit would also be usage based.

Assuming this is a taxable benefit, which does seem to be the current case.

If the employee derives more value out of the pass than that cost, it's a good deal for them and even if taxed would be tax advantageous.

For our employee's the vehicle use, falls under the Commuting Rule.

As for the point on the value of the pass, per the IRS from Publication 15-B:

General Valuation Rule​

You must use the general valuation rule to determine the value of most fringe benefits. Under this rule, the value of a fringe benefit is its fair market value.

Fair market value (FMV).

The FMV of a fringe benefit is the amount an employee would have to pay a third party in an arm's-length transaction to buy or lease the benefit. Determine this amount on the basis of all the facts and circumstances.
Neither the amount the employee considers to be the value of the fringe benefit nor the cost you incur to provide the benefit determines its FMV.

Psy

 

[mikejs78]

At the end of the day though, this hardly represents a case of gross corruption/mismanagement. It was a bad decision on behalf of the district not to withhold or disclose on W-2s that these benefits should be taxed. This type of situation is one that companies find themselves in all the time - our tax code is complex, and sometimes mistakes are made or some people try to stretch the loopholes. Yes, it was wrong, but again this is a failing of the district, not a failing of the relationship between the district and Disney.

Looking at the forensic financial report, there really wasn't much else in the way of findings. A lot of nothing, and nothing that impunes the relationship or separation between Reedy Creek and Disney.

 

[tissandtully]

At the end of the day though, this hardly represents a case of gross corruption/mismanagement. It was a bad decision on behalf of the district not to withhold or disclose on W-2s that these benefits should be taxed. This type of situation is one that companies find themselves in all the time - our tax code is complex, and sometimes mistakes are made or some people try to stretch the loopholes. Yes, it was wrong, but again this is a failing of the district, not a failing of the relationship between the district and Disney.

Looking at the forensic financial report, there really wasn't much else in the way of findings. A lot of nothing, and nothing that impunes the relationship or separation between Reedy Creek and Disney.

Not even sure it was wrong, I'd like to see this argued in judicial setting, because I can definitely see the argument of the passes being a work expense. Plenty of people expense stuff for work (how many Disney bloggers do this for APs??) It's up to them to prove the use and that's only if they get audited.

 

[Twirlnhurl]

I wouldn't blame anyone if it were the board or the staff of the district who wrote this report, given their proclivity for embellishments and even willful misstatements. But that's not what happened. It was written by outside counsel, with major portions being written by experts in their fields. This is addressed starting on page five. While I'm not familiar enough with these matters to authoritatively say that the authors are unimpeachable, it would seem they have plenty of credibility.

Consultants write things to flatter their clients all the time. As long as you don't lie about substance, you can frame things any way you like.

It doesn't sound like this report has much to damn Disney's relationship with RCID beyond some minor issues like the employee pass income tax thing.

Honestly, as a person with generally positive feelings towards RCID and negative feelings towards the governor, I am surprised at how little substance there is here. Most local governments in Florida of this size that I would not consider particularly poorly run have more skeletons in their closets.

Since the report found so little of substance, the consultant decided to fill the report with lots of hyperbole to distract the new board from the lack of standing. That the sound bites play well to people who don't know what is going on here is a bonus. The consultant is probably pretty confident they will be paid in full.

 

[Haymarket]

Pretty good granular analysis of some key findings of the report.

'MAGIC BEHIND THE MAGIC': Florida Government Reveals Massive Disney Corruption Scheme

Disney captured the local government, the Reedy Creek Improvement District, with various kinds of "bribes," report says.

www.dailysignal.com

 

[mkt]

Pretty good granular analysis of some key findings of the report.

'MAGIC BEHIND THE MAGIC': Florida Government Reveals Massive Disney Corruption Scheme

Disney captured the local government, the Reedy Creek Improvement District, with various kinds of "bribes," report says.

www.dailysignal.com

It's literally not.

There was nothing in that report that wasn't already public knowledge.

 

[MR.Dis]

We all know whats really happening. Disney is suing because their first amendment was violated. But wait, the old board was corrupt. So now we are going to have the courts make the decision which is worse, first amendment violation or corruption?? This makes me sick, but just par for the course in this very toxic times.

 

[Lilofan]

We all know whats really happening. Disney is suing because their first amendment was violated. But wait, the old board was corrupt. So now we are going to have the courts make the decision which is worse, first amendment violation or corruption?? This makes me sick, but just par for the course in this very toxic times.

The winners laughing all the way to the bank are the lawyers.

 

[mkt]

The winners laughing all the way to the bank are the lawyers.

They're not. Most of the lawyers actually doing the work are drawing a salary. Meanwhile the lawyers doing the CFTOD's/DeSantis's work are likely annoyed at having to devise legal arguments that won't stand up to scrutiny.

The only people making money are the partners who will later funnel part of it as political contributions back towards DeSantis.

 

[mkt]

We all know whats really happening. Disney is suing because their first amendment was violated. But wait, the old board was corrupt. So now we are going to have the courts make the decision which is worse, first amendment violation or corruption?? This makes me sick, but just par for the course in this very toxic times.

First amendment violation for sure, especially since most of the allegations of corruption aren't illegal, unethical, or even corruption.

 

[flynnibus]

someone should FOIA the district to find out who they sent the report to early...

Something tells me that list is gonna be a bit skewed

 

[Brian]

There is still a huge gap between skew.. and outright distortion.

No one is claiming purity - but there is a point where absurdity isn't even worth the time to read.

Again, the same can be said of the aforementioned mainstream outlets, which have been caught red-handed spreading outright lies, in addition to their other sketchy practices.

 

[Stripes]

The fact of the matter is that whatever power RCID supposedly abused, none of which hold a candle to the corruption of other government entities in Florida, all of it could have been addressed without stripping the consent of the governed.

But, it seems people no longer hold the ideals that go straight to the foundations of this country anymore. It’s all about tribalism and whether this is a win for their side.

Sickening.

 

[tissandtully]

Again, the same can be said of the aforementioned mainstream outlets, which have been caught red-handed spreading outright lies, in addition to their other sketchy practices.

Examples?

 

[tissandtully]

The fact of the matter is that whatever power RCID supposedly abused, none of which hold a candle to the corruption of other government entities in Florida, all of of it could have been addressed without stripping the consent of the governed.

But, it seems people no longer hold the ideals that go straight to the foundations of this country anymore. It’s all about tribalism and whether this is a win for their side.

Sickening.

It's definitely sickening that we've got people on this thread who contort themselves all different ways just to make it known that they are OK with government retaliation of protected speech.

 

[WoundedDreamer]

There's some good analysis here as well:

Independent Audit Blasts Disney For Pulling ‘Bait And Switch’ On Florida: ‘A Mousetrap’

Disney secured the ability to effectively govern itself in Florida for more than half a century by performing a “bait and switch” on the state, and used its “complete and unaccountable governmental power” to “maximize its profits” at “the expense of the public good,” according to an independent...

www.dailywire.com

The implication in this article is that Walt Disney knowingly lied about his aim to build Progress City. You can criticize Walt Disney for whatever you want. But questioning his sincerity when it relates to EPCOT will rightly earn the scorn of anyone who knows anything about Walt Disney. Walt Disney Productions was still experimenting with how to implement the EPCOT vision for decades after Walt's death. The fact nothing came to fruition was not a bait and switch. It was the result of the company losing its two visionary founders.

If the RCID was an exploitative and undemocratic institution, it wasn't Disney's fault. The culpability rests with the Florida Legislature. They were the ones who created the RCID, allowed the RCID to function for decades, and ultimately ended the RCID. Insofar as Disney had unfair advantages, that was the Florida Legislature's fault for not eliminating them.

As I mentioned before, I am not inherently opposed to reforming/eliminating the RCID or reevaluating Walt Disney World's benefits. There are legitimate points raised by critics of the RCID. It's unfortunate that a worthwhile conversation has become the realm of grandstanding and sloganeering.

 

[Stripes]

Statement from Disney Spokesperson:

This report is an exercise in revisionist history. It is neither objective nor credible, and only seeks to advance CFTOD’s interests in its wasteful litigation that could derail investment within the district. Further, it does not change the fact that the CFTOD board was appointed by the governor to punish Disney for exercising its Constitutional right to free speech. This report also comes on the heels of numerous reports in the media which have raised legitimate concerns around the governance of the district under its new leadership. While the board may wish to undermine Disney’s ability to continue investing in the region, we are extremely proud of our impact on the Central Florida economy over the past half-century and we remain committed to maintaining the highest quality experience for the tens of millions of guests who visit Walt Disney World each year.

Source: https://blogmickey.com/2023/12/desa...-calls-report-neither-objective-nor-credible/

 

[lazyboy97o]

Statement from Disney Spokesperson:



Source: https://blogmickey.com/2023/12/desa...-calls-report-neither-objective-nor-credible/

This is the sort of stance they should have taken in the first place.

 

[Brian]

Love that. "Do what we say or we won't invest in WDW anymore."

What a joke.