- Florida lawmakers have passed a bill to lift Disney’s special tax status.
- But taxpayers may have to cover the debt if the special status is revoked, CNBC reported.
- The bill is the latest development in Disney’s fight with lawmakers for the Don’t Say Gay bill.
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Tax officials and lawmakers say a law abolishing Disney’s self-governing status could burden local taxpayers with more than $ 1 billion in bond debt, CNBC reported on Thursday.
Florida Republicans on Thursday passed a bill that could repeal the company’s special enhancement area, effective June 2023. The bill comes after the company spoke out against the state’s recent bill on parental rights in education, called by activists and critics like the “Don’t Say Gay” bill.
In 1967, Florida lawmakers created a special area for taxation and governance, known as the Reedy Creek Improvement District, where landowners – mostly Walt Disney World – will fund their own municipal services such as electricity, water, roads, and emergency services. services and fire protection.
Scott Randolph, a tax collector for Orange County, told CNBC that the Reedy Creek area collects about $ 105 million a year in total revenue, in addition to more than $ 280 million that Disney pays as property taxes – making it the largest taxpayer in central Florida.
Legislation approved by lawmakers on Thursday aims to close Reedy Creek by June 2023. If dissolved, responsibility for municipal services falls on neighboring Orange and Osceola counties.
“If you disband Reedy Creek, that $ 105 million in revenue is literally gone, it’s not being transferred,” Randolph said, putting taxpayers in charge of covering some, if not all, of the costs.
However, Florida spokesman Randy Fine, who helped draft the Reedy Creek sunset bill, told CNBC that local taxpayers would actually benefit from Disney being stripped of its special tax status, saying the tax revenue generated by Disney will instead go to the local government and cover the services.
“These taxes will continue to be paid,” Fine said. “They will simply be paid to Orange and Osceola counties instead of in this special area for improvement. Taxpayers could save money because you have duplicate services provided by this special area that are already provided by these municipalities. “
Throughout Walt Disney World, all American flags lack a star or stripe. Sopa Images / Getty Images
But in addition to responsibility for municipal services, tax experts and lawmakers have warned that dissolving the district means transferring its bond obligations – totaling between $ 1 billion and $ 1.7 billion – to other local authorities, CNBC reported.
Senate Minority Leader Gary Farmer told CNBC that if the debt was transferred to Orange and Osceola counties, the debt could add another $ 1,000 to the taxpayer.
“If the counties stay in the bag, the state may have to come to their aid,” Farmer said. “So it’s not even just a tax issue for these two counties. It affects every taxpayer in Florida.”
Farmer proposed an amendment to Disney’s tax status bill to allow time to investigate bond debt, but it was removed by a vote. Finn said the bond debt will be covered by the tax revenue Disney pays.
“We should not move at a distorted speed on something that could have such far-reaching economic consequences,” Farmer said.
Representatives of Walt Disney World, Farmer and Fine did not immediately return Insider’s request for comment.
Depriving Disney of its self-governing status is the latest development in the company’s fight with GOP lawmakers for the Don’t Say Gay bill.
Disney CEO Bob Chapek hints that Disney World may soon cancel its mandate for guest mask Jeff Gritchen: MediaNews Group: Orange County Register via Getty Images
Last month, Disney CEO Bob Chapek was criticized – both internally and externally by protests in the company’s theme parks – after initially blatantly exposing controversial LGBTQ + legislation, despite the big role it plays in the economy. state owned.
The LGBTQ + law, signed by Gov. Ron DeSantis on March 28th, will generally ban discussions on sexuality and gender identity in classrooms from kindergarten to third grade and allow parents to sue schools if officials facilitate those conversations. It is expected to take effect on July 1.
On March 28, the same day that DeSantis signed the bill, Disney released its most critical statement to date against the bill, saying it “should never have been passed and should never have been signed into law.”
“Our goal as a company is to have this law repealed by the legislature or rejected in court, and we remain committed to supporting national and government organizations working to achieve this,” a company spokesman said.
In response, DeSantis criticized the company, saying it had “crossed the line” with their statement and efforts to repeal it, which he called “fundamentally dishonest”.
On Thursday, Newsmax presenter Eric Boling asked Lt. Gov. Janet Nunez if the governor would reconsider repealing Disney’s special tax status if the company dropped the “awakened” program.
“Is there a way for Disney to change its mind and say that we will ignore this whole ‘awakened’ agenda … and will the governor then say, ‘Okay, you can keep your status, but we’ll keep an eye on you.’ now? “Bolling asked, to which Nunez said,” Of course. “
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