Florida wants to revoke Disney's ability to self-govern

Republican state lawmakers introduced a bill that would see Disney lose power over its "special tax district."

Walt Disney World Resort /David Aughinbaugh II - Flickr.

Published by

7 de febrero, 2023

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Disney's dominance in Florida could be coming to an end, at least in the Reedy Creek Improvement District, the territory owned by the entertainment giant. As explained by The Wall Street Journal, the company has a "special tax district" and is essentially able to "self-govern" on this land, where Walt Disney World Resort is located.

Republican lawmakers in the Florida House of Representatives could wipe out the territory if the bill they introduced on Monday passes. This legislation would change the name of the Reedy Creek Improvement District to the Central Florida Tourism Oversight District.

This change would give Governor Ron DeSantis the power to appoint members to its governing body, a five-member board of supervisors. This authority previously held by Disney would now be given to the governor, although these appointments would need the approval of the Florida State Senate, explains WSJ.

DeSantis is compensated for the change because his office assured, in statements picked up by DailyWire, that Disney's special tax district (in effect since 1967) turned the theme park into an "an unaccountable Corporate Kingdom:"

Florida is dissolving the Corporate Kingdom and beginning a new era of accountability and transparency. These actions ensure a state-controlled district accountable to the people instead of a corporate-controlled kingdom.

Disney loses tax advantages

The DeSantis administration explained that, with the legislation, Disney would permanently lose self-governance status in the territory. DailyWire also explains that the bill would impose a state-controlled, term-limited board, with members appointed by the governor. In addition, no person or family that worked for Disney or other theme park operators in the past three years could serve on the board, reports Variety.

Other measures that would affect Disney would be Florida taxing Disney for potential projects outside the district's boundaries, ensuring that the entertainment giant pays the more than $700 million it has in unsecured debt and, most importantly, it would impose Florida law whereby Disney would no longer be able to receive preferential treatment.

Avoiding a "corporate-controlled kingdom"

DeSantis' press secretary, Bryan Griffin, assured in a press release received by WPTV, that the law would also cut Disney's other privileges on the land, e.g. building an airport or a nuclear power plant, land acquisition by eminent domain, and getting construction contracts without bidding: "These actions ensure a state-controlled district, accountable to the people instead of a corporate-controlled kingdom," he said.

The bill is of particular concern to the company. According to a statement from Jeff Vahle, president of Walt Disney World Resort, they are keeping a close eye on any changes to the legislation:

We are monitoring the progression of the draft legislation, which is complex given the long history of the Reedy Creek Improvement District. Disney works under a number of different models and jurisdictions around the world, and regardless of the outcome, we remain committed to providing the highest quality experience for the millions of guests who visit each year.