In April of this year, Florida’s House of Representatives stripped Disney of its special tax status. As it stood before, Disney’s theme park in Orlando, Florida, was taxed under different rules than the other theme parks throughout the state. They essentially collected most of the tax revenue in the Reedy Creek district where the theme park was located. They used this money to cover the District governing expenses and the salaries of the roughly 500 employees that work for the district.
The Original Bill
Under the bill lawmakers passed in April, any special district that was established before the ratification of the Florida Constitution in 1968 and has not renewed its status since then, was eradicated as of June 1, 2023. Reedy Creek meets all the criteria to be dissolved which means Disney may no longer have a special district.
Disney Getting its Tax Magic Back?
The lawmakers in Florida are reportedly working, and expected, to reverse this law that was previously set to strip the Media Giant of its special tax status in the state. The bill that was signed in April, would have ended a 55-year agreement the company had with the state of Florida in 2023. This bill effectively allowed Disney to form a mini-government for the 25,000-acre area around the theme park. They were able to tax themselves to fund services like water, power, and emergency services. This law reversal comes after a Feud between Florida’s Governor Ron DeSantis and former Disney CEO, Bob Chapek.
Wrap Up
This is most likely a relief to Disney as it now looks like they will be able to keep their special tax status in Florida, they were set to lose in about seven months.