Florida Republican Gov. Ron DeSantis signed legislation transferring sovereignty of the special tax and governance district previously run by Disney to the state last Monday.
In 1967, Florida lawmakers established the Reedy Creek Improvement District, which reportedly saved Disney tens of millions of dollars each year in taxes and fees. The measure enacted by DeSantis creates the Central Florida Tourist Oversight District, a new state-controlled administrative zone.
Part of the statement from Governor Ron DeSantis says:
“Allowing a corporation to control its own government is bad policy, especially when the corporation makes decisions that impact an entire region,”(…) “This legislation ends Disney’s self-governing status, makes Disney live under the same laws as everybody else, and ensures that Disney pays its debts and fair share of taxes.”
The statement continues:
“HB 9-B ends Disney’s self-governing status and imposes a five-member state control board that is appointed by the Governor and subject to Senate confirmation.
This legislation amends the Reedy Creek Improvement District charter which:
- ENDS Disney’s self-governing status.
- ENDS Disney’s exemption from the Florida Building Code and Florida Fire Prevention Code.
- ENDS Disney’s exemption from state regulatory reviews and approvals.
- ENDS Disney’s secrecy by ensuring transparency.
- ENSURES that Disney will pay its fair share of taxes.
- PREVENTS leftist local governments from using the situation to raise local taxes.
- IMPOSES Florida law so that Disney is no longer given preferential treatment.
- ENSURES that Disney’s municipal debt will be paid by Disney, not Florida taxpayers.”
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Throughout the early 1960s, Disney used various shell firms to buy tens of thousands of acres in central Florida. As a result, the land that would become Disney World was acquired at an average cost of $180 per acre. Reedy Creek Improvement District was granted the authority to charge taxes, issue bonds, and draft its own building and wastewater management legislation, avoiding the regulatory problems that other businesses in the state faced.
Disney’s exemption from the Florida Building Code and the Florida Fire Prevention Code is likewise repealed under the new law. The measure was approved by the Florida House 82-31 and the Florida Senate 26-9; both houses having large Republican majorities following the party’s sweeping victory in the state’s midterm elections.
DeSantis originally sought to revoke Disney’s special treatment last year, after the business openly opposed a parental rights measure that was subsequently enacted into law, which forbids teaching children in kindergarten through third grade about sexual orientation and gender identity. According to a Daily Wire survey, 64% of Americans backed the Florida bill, including 62% of Democrats and 57% of independents.
Disney CEO Bob Iger expressed sadness that the corporation had lost unique regulatory and tax protections, promising that management will listen to customers more closely in the future.
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The terms of the bill went into effect on Monday, although the legislation enables the district to continue conducting business as Reedy Creek for up to two years throughout the transition.
Existing board members’ tenure would expire as soon as the bill takes effect, and DeSantis said he will publicly pick their successors later that day, citing five allies he intends to appoint, including Florida business people, DeSantis contributors, and a member of the Sarasota school board. According to DeSantis, the board will convene for the first time next week.
What the expected redesign of the special district will entail for Disney and visitors to Walt Disney World is still unclear. Rep. Anna Eskamani, a Democrat from Orlando, called the measure a “power grab” by DeSantis.
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In the same clip from Fox 35, Aubrey Jewett, a political science professor at the University of Central Florida, says that the influence would be primarily determined by DeSantis’ appointees. Board members would have the authority to reject theme park building projects, which might have an impact on customers’ experiences.
The arrangement, according to Jewett, would likely make Disney much more reliant to DeSantis when he controls the destiny of their business in his hands, and the board’s composition of his appointments puts “some pressure on Disney not to criticize Gov. DeSantis.”
Independent Writer. Marketing and communications strategist for politicians, artists, public figures & corporate brands for more than 10 years. Contact: @alejandrosbasso (Twitter)
Escritor independiente. Consultor en marketing y comunicaciones de políticos, artistas, figuras públicas y marcas por más de 10 años. Contacto: @alejandrosbasso (Twitter)