Florida Gov. DeSantis signs bill revoking Disney’s special district status

View of the Walt Disney statue in front of Cinderella Castle inside the Magic Kingdom Park at Walt Disney World Resort in Lake Buena Vista, Florida.

The bill revoking the Disney Company's special district status in Florida was signed into law by the governor on Friday.

The bill, which would see the Reedy Creek Improvement District dissolved, passed the state Senate on Wednesday with a vote of 23-16 and through the state House of Representatives on Thursday with a vote of 70-38.

Disney has declined to comment on the legislation, but the dispute is likely to end up in court.

Disney has been able to make additions to its resort area without interference from local counties for more than five decades. The bill has been signed into law and it will change in June of 2023.

The entertainment giant is locked in a bitter and public feud with the congressman over the company's denouncement of Florida's House Bill 1557 law. Proponents of the bill have denied that it is a revenge act against Disney, but critics think it is.

The Florida legislature created Reedy Creek in order for Disney to develop the infrastructure for Walt Disney World at no cost to Florida taxpayers. Disney maintains more than 130 miles of roadway and 67 miles of waterways as well as government services such as fire protection, emergency services, water, utilities and sewage.

Legislators and tax experts say that eliminating the district could have consequences. Disney's special tax district status allows the company to impose an additional tax on itself to pay for municipal services, something other counties cannot do. The tax in Orange County is currently around 105 million dollars a year. Reedy Creek gets additional revenue from Disney to pay its debt.

Without special status in place, local counties will begin paying for those services. Pot holes and emergency services will be paid for by taxpayers.

Reedy Creek's debt would also be absorbed by the counties. According to its financial reports, the district has a loss of $5 million to $10 million each year. Disney's debt doesn't have much impact on its bottom line because it subsidizes its own operations with theme park revenue.

Taxpayers would be responsible for $1 billion in debt on the balance sheet if the special district is absorbed.

It won't be easy to save those budgets. State law prohibits counties from raising sales taxes or impact fees to cover costs, and they must tax all areas equally. Whatever they do will apply to everyone.

The county will have to raise property taxes by 20% to 25%.