Employees of the Central Florida Tourism Oversight District (CFTOD) reportedly owe the Internal Revenue Service more than $2 million in back taxes, according to the Orlando Sentinel.
- The tax issue stems from the free Disney passes employees and retirees received for years as part of their benefits, according to district administrator Glen Gilzean explained the situation to employees in an email on Friday.
- “[I]t has come to the attention of the district administration that the previous leadership chose not to inform staff about their IRS obligations to pay legally owed taxes on season pass benefits. This has resulted in our employees owing over $2 million in income back taxes.”
- Gilzean also explained that the CFTOD is working to resolve the issues and is awaiting a response from the IRS.
- District spokesman Matthew Oberly said district employees were unaware of the tax liability surrounding the Disney passes they had received.
- Disney did not reply to a request for comment on the matter.
- The CFTOD has roughly 400 employees and their Disney perks reportedly cost $2.5 million in 2022.
- The CFTOD is working to pay the tax liability for its employees, which would mean the taxpayers would foot that bill. Disney and affiliates pay roughly 86% of the district’s property taxes.
What they’re saying:
- Charlotte A. Erdmann, the founding attorney of Orlando Tax Law: “The Disney passes were likely a taxable benefit, similar to wages or bonuses. Due to the nature of the benefit, they were unlike cafeteria plans, medical benefits and other pre-tax benefits. They are also of substantial value.”