Florida House hands control of Disney tax district to Gov. DeSantis [Video]

WHAT YOU NEED TO KNOW:

• A measure stripping Disney’s control over its special tax district in Florida has been passed in the Florida House.
• The legislation aims to rename the district and install new overseers while still holding the company responsible for its debt.
• The rift between the company and DeSantis started when Disney opposed the governor’s so-called “Don’t Say Gay” law.

The Florida House of Representatives has approved legislation that would remove Walt Disney World‘s control of its special tax district and hand the reins over to Gov. Ron DeSantis.

Disney had a rift with DeSantis when the entertainment giant publicly opposed the governor’s so-called “Don’t Say Gay” law, which barred the discussion of gender identity and sexual orientation for kids in kindergarten through the third grade.

Supporters of the law said that it aimed to protect kids from age-inappropriate subject matter, while Disney condemned it as anti-LGBTQ. The disagreement prompted DeSantis to consider dissolving Disney’s special tax district altogether.

The legislation would keep the Reedy Creek Improvement District intact, but rename it and replace its current oversight board with DeSantis appointees. There will also be new limitations on its power.

The House passed the measure on a party-line vote of 82-31. The measure is also expected to pass in the Florida Senate on Friday.

Under the current model, Disney is allowed to administer its own fire and police forces, levy taxes, and assert eminent domain claims even outside of its 39-square-mile parcel of land. The new model will block the company from using state tax dollars for advertising and approving certain large-scale projects like airports and stadiums.

Some critics pointed out that completely dissolving the district could shift Disney’s estimated $1 billion in debt to taxpayers. But DeSantis said that the move would still hold Disney accountable for its debt.

Speaking to reporters on Wednesday, DeSantis announced, “Disney is no longer going to have self-government; they’re not going to have their own government. Disney’s going to pay its fair share of taxes and Disney’s going to honor the debt and that’s exactly what this proposed piece of legislation will do.”

Disney officials said that they are discussing the law’s implications.

This week, Walt Disney World Resort president Jeff Vahle stated, “We are monitoring the progression of the draft legislation, which is complex given the long history of the Reedy Creek Improvement District.” He noted that Disney “works under a number of different models and jurisdictions around the world.”

Vahle added, “Regardless of the outcome, we remain committed to providing the highest quality experience for the millions of guests who visit each year.”

Source: New York Post