FLORIDA – As IRS cracks down on The Villages, Disney World watches
Orlando Sentinel: As IRS cracks down on The Villages, Disney World watches
“We believe that an entity that is organized and operated in a manner intended to perpetuate private control, and to avoid indefinitely responsibility to a public electorate, cannot be a political subdivision of a state,” the IRS wrote in its ruling.
By Jason Garcia July 13, 2013
The federal government recently cracked down on a lucrative tax break used by the developer of The Villages, the sprawling community northwest of Orlando that has been called Disney World for retirees. That could be an ominous sign for the real Walt Disney World. In a scathing decision issued in May, the Internal Revenue Service ruled that The Villages did not have the right to use tax-free debt to finance golf courses, swimming pools and other assets. The reason: The Villages sold the debt through an obscure government district whose leaders were ultimately controlled by the developer, rather than the general public, and therefore couldn’t be considered real governments. Read more: