The Disney designation gave the company control of the area including and surrounding Walt Disney World, which includes a collection of theme parks, hotels, golf courses and other entertainment venues.
Here’s what’s at stake for Disney:
What is the special tax district? And why was it created?
The Florida State Legislature created the Reedy Creek Improvement District in 1967 to promote the development of Walt Disney World on a 38.5 square mile parcel of pasture and swampland in central Florida.
What benefits does the Special Tax District provide Disney today?
Disney pays taxes to the Reedy Creek Improvement District and the two counties its resort overlaps, Orange and Osceola. The district, in turn, provides services, including firefighting, emergency medical services, water and wastewater treatment, and may issue municipal bonds to finance construction projects. infrastructure, which comes with tax benefits.
In practice, the arrangement allows Disney to control municipal services and to be autonomous regarding land use and development, exempting them from certain regulations.
What is the impact of disbanding the district on Disney? Will the company have to pay more taxes or will the park cost more to operate?
Walt Disney World paid $780.3 million in state and local taxes in 2021. Dissolving the district would mean the company could no longer fund improvements through municipal bonds, which carry tax advantages. It’s unclear what that would mean for Disney’s operating costs.
What is the impact on Florida counties and taxpayers? Can Disney appeal the decision?
The legislation could end up increasing the tax burden on Orange and Osceola residents, who would have to foot the bill for all the services Disney pays for through the special district, including roads, fire departments and l ‘water. They may also have to foot the $58 million debt service bill.
Why does the Governor of Florida and the Republican-controlled Legislature want to dismantle the district?
The move marks the culmination of a feud between the company and DeSantis, who began targeting Disney after she criticized legislation that bans any classroom discussion of sexual orientation or gender identity in schools. state primary schools and prohibits “age-inappropriate” instruction for other grades.