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Here’s Why Taxpayers Could Lose If Florida Punishes Disney: NPR

Disney operates like its own county government in Florida — but that could change, if Governor Ron DeSantis signs a new bill passed by lawmakers this week. Here, tourists walk through Disney Springs at Walt Disney World in Orlando, Fla., last month.

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Disney operates like its own county government in Florida — but that could change, if Governor Ron DeSantis signs a new bill passed by lawmakers this week. Here, tourists walk through Disney Springs at Walt Disney World in Orlando, Fla., last month.

Octavio Jones / Getty Images

The Florida legislature sent Governor Ron DeSantis a bill stripping Disney World of Disney World’s status as an “independent special district,” responding to the governor’s request to sanction the Disney company for its stance in the United States. social and educational issues.

The bill would cut Disney’s autonomy, but it could impose high costs on Orange and Osceola counties, where theme parks are located. The two counties will inherit Disney county debts, which officials say will result in higher taxes.

Here’s a quick recap of the situation:

Does Disney really have its own government in Florida?

Disney gained almost complete control over its theme parks and other attractions in 1967, when the state designated the area as Reedy Creek Improvement Area. The 25,000-acre site – almost 40 square miles – in Central Florida.

Disney acts like a county government, building and maintaining city services such as electricity, water, and roads, and providing police and fire protection. It even taxes itself. The setup is intended to give Disney autonomy while reducing the need for counties to pay for new services and infrastructure in what was once a rural and remote area.

But Reedy Creek’s status is poised to change if DeSantis signs Senate Bill 4-Ctargets it and five other independent special zones established before 1968. The governor has a May 6 deadline to act on the bill he is expected to sign.

Why would Disney transfer debt?

Own by the Florida Senate financial impact analysis of the bill states that in most cases when a county takes over a special district, it “will also shoulder all the debts of the pre-existing district.” In Disney’s case, that could leave local governments with about $1 billion in bond debt.

The analysis by the state senate concluded that the bill would have “unspecified fiscal impact” on residents and businesses in the special zones, as well as on local governments that would shoulder the debt and financial burden of the state. produce.

According to Scott Randolph, a Democrat and Orange County tax collector, the change promises to shake up the local tax picture.

“If Reedy Creek goes away, the $105 million it raised to operate the services will disappear,” Randolph said. via Twitter. “That doesn’t just move to Orange County because it’s an independent taxing county. However, Orange County then inherits all the debts and obligations with no additional funds.”

According to Randolph, Disney also taxes itself about $53 million a year to pay its debt obligations.

The situation quickly led to warnings that the county’s property taxes would rise sharply. Quote from interview with Randolph, Danielle Prieur of WMFE affiliate station in Orlando report“Homeowners here could see a 20% property tax increase to make up the difference. And even then, it probably won’t be enough to make up for all the money that will be lost.”

Why is Florida taking action now?

The Florida Legislature needed just three days to introduce and pass the bill, which DeSantis requested on Tuesday as part of a special session originally called to address the state’s problem. attempt to redistribute.

Disney has a big influence in Florida, and it donate to DeSantis during the 2020 election cycle, but the company disagrees with his policies on Requirements for the COVID-19 vaccine, or face covering. The rift deepened this spring, when DeSantis accused the entertainment giant of embracing “wake-up” views.

“In recent weeks, stress rises when Disney CEO Bob Chapek said he would support the repeal of Florida’s Parental Rights in Education Act, a measure critics called ‘Don’t Say Gay,’ “like NPR’s Greg Allen reported. “At the time, DeSantis said he believed Disney had ‘crossed the line’.”

What will the bill mean for Disney and Florida counties?

The new bill will officially go into effect on July 1. But its sweeping changes won’t come into effect until next summer, on June 1, 2023. That’s when the six special zones that won’t come into effect. Targeted legislators are expected to be dissolved, giving Orange and Osceola counties new accountability.

Prieur of WMFE reports: “Disney is in charge of ambulance and fire services. “So if someone has a heart attack or a car accident, now the county is going to figure out how to handle that – and how to pay the bills.

“Also, Disney will now need approval before expanding across all of the great theme parks, hotels, restaurants and new rides. There’s a lot of red tape involved.”

Questions remain as to how the new bill will work and how it will affect local governments. It’s also possible that Disney’s and other affected independent counties will be able to strike a new deal before officially transitioning: The law explicitly states that counties can “be re-established on or after June 1.” 2023″ – the date they will be dissolved – as long as it complies with state law.

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