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Florida poised to strip Disney of special tax status

April 21, 2022
General views of the Walt Disney 'Partners' statue at Magic Kingdom, celebrating its 50th anniversary on April 03, 2022 in Orlando, Florida.
General views of the Walt Disney 'Partners' statue at Magic Kingdom, celebrating its 50th anniversary on April 03, 2022 in Orlando, Florida.

ORLANDO — Florida is poised to strip Walt Disney of its special self-governing status amid a political clash between the company and the governor.

The status gives Disney powers to levy tax, build roads and control utilities on the lands of its theme park.

The move is widely seen as retribution for Disney's opposition to the so-called "Don't Say Gay" law.

Signed by Governor Ron DeSantis, it bars primary school teachers from discussing sexual orientation.

On Wednesday, at the Republican's urging, the state Senate passed a bill that would rid the company of its near-total power over the special district where its theme park is based.

Known as the Reedy Creek Improvement District, it was created in a 1967 deal between the state and the Walt Disney Company.

The Republican-led House is likely to approve the measure to dismantle it on Thursday, and Governor DeSantis has made it clear he will sign it into law. If passed, Disney's special district will be dissolved on 1 June, 2023.

Disney did not respond for comment.

Its special status has effectively allowed the company to operate as its own municipal government, with its own board of supervisors and fire department, and meant Disney could even build its own airport, or nuclear power plant if desired.

It has given the entertainment giant freedom from almost all bureaucratic intervention for half a century and is thought to have saved it from tens of millions of dollars in taxes and fees.

And it is part of why Disney chose to build its theme parks in Florida, where it has become the state's largest private employer, with some 80,000 jobs.

But Disney's special relationship with the state of Florida has come under threat over its response to the Parental Rights in Education bill, which DeSantis signed last month.

Dubbed the "Don't Say Gay" law by critics, it prohibits any instruction about sexual orientation or gender identity between kindergarten and third grade - when students are roughly between five and nine years old. Opponents say the law will isolate and stigmatize LGBT youth, while supporters say it protects children from age-inappropriate content.

Disney originally remained mum on the bill, but reversed course after it came under pressure from employees to oppose the bill.

After it became law, Disney promised to push for its repeal and fight similar bills across the US.

In response, DeSantis said the company, which has made Florida its home, had "crossed the line". — BBC


April 21, 2022
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