Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Rather than having the district brought under the control of nearby municipalities, he said hed like to see the state assume jurisdiction over the district. They are now going to have to go through the same process as Reedy Creek if it all comes to pass. Florida Republican Gov. A month later, he introduced legislation on revoking Disney's special tax status. The district has a sewer plant. DeSantis on Tuesday announced that Floridas GOP-controlled Legislature would be considering legislation that would sunset special districts formed in the state prior to 1968. Some state officials have long eyed tightening control over those districts. The entertainment conglomerate did not respond to a request for comment. The district, in turn, provides services, including fire response, emergency medical services, water and sewage treatment, and can issue municipal bonds to finance infrastructure projects, which comes with tax advantages. Benjamin Valdez: As of now, it seems that Disney's other tax breaks in the state, which actually includes tax incentives for a new office complex, haven't been targeted. The Republican-led state house in Florida voted 70-38 to do away with a special tax district created by a 1967 law that allows Disney to self-govern the roughly 25,000-acre Orlando area where its . Within the counties, it's hard to get a gauge, obviously, on every single citizen's opinion. Tax Notes reporter Benjamin Valdez discusses the Florida legislation eliminating Disney's special tax district, what led to its passage, and what to expect in the future. Florida Legislature votes to strip Disney of special tax status in a Florida Gov. Ron DeSantis' feud with Disney World, explained This copy is for your personal, non-commercial use only. Florida Governor Ron DeSantis signed a bill into law Friday. If legislators approve the bill, as is expected, Disney would be able to go to the state Legislature in Tallahassee next year and request it be reestablished, likely under more limited capabilities and powers. In the case of Disney, some conservative leaders have said their motivation for dissolving the special district is not political. Ron DeSantis (R) signed a bill into law Friday that would dismantle the special taxing district where the Walt Disney World Resort operates, effectively weaponizing a hastily. On Monday, Florida Gov. David D. Stewart: Looking out into the future, what should we be keeping an eye on in the near future regarding this law? Travel tips you can trust. I think people are just now realizing how many there are across the country, and that they're something that states have been allowing for quite a long time. TALLAHASSEE The standoff between Gov. Since 1967, the Florida land housing Disney's theme parks has been governed by the . Walt Disney Co. proposed the Reedy Creek Improvement District in the mid-1960s in a remote area of Orange and Osceola counties. Florida is home to more than 1,800 special districts of all shapes, sizes and flavors, from housing and community development districts to quasi-governmental agencies. At the same time, Disney was increasingly drawing criticism from conservatives for making changes to its parks and films to increase inclusivity. Thank you for being here. - The Washington Post By The Way Disney's special tax district in Florida, explained What you need to know about the. (Photo by Matt Stroshane/Walt Disney World Resort via Getty Images), Walt Disney World Resort via Getty Images, JACKSONVILLE, FLORIDA - APRIL 09: Florida governor, Ron DeSantis is seen in attendance during the UFC 273 event at VyStar Veterans Memorial Arena on April 09, 2022 in Jacksonville, Florida. Shortly after Disney criticized the controversial state classroom bill derided as "Don't Say Gay" by critics, DeSantis and his Republican allies targeted the special tax district that has allowed . Factbox: What is the special tax designation Disney might lose? Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Local governments have given some special privileges to Disneys theme park competitors. Others have been more upfront about wanting to punish the company for taking a stand against a bill banning instruction about sexual orientation and gender identity in younger school grades, and limiting the instruction in others. Florida set to strip Disney of self-governing status in dispute over He's also recently told reporters that it's possible that the state will assume control of the district rather than the counties so that they can definitely make sure that there are no tax increases. According to a local tax collector, Disney has taxed itself roughly $53 million each year to pay off the debts from that development. Heres a quick breakdown of what the district is, why Floridas Republican-led legislature voted to get rid of it and what that might mean. Disney's special tax district in Florida, explained Florida lawmakers have been busy this week in a special legislative session. Florida legislature approves end of Disney's special status - CNN The situation quickly prompted warnings that county property taxes will sharply rise. The district itself has the ability to levy ad valorem taxes at a higher millage rate than the neighboring counties and to issue bonds to fund construction and other kind of projects within the boundaries. Every special district should be evaluated., While noting the number of special districts in Florida last week, DeSantis said there is nothing wrong with a special district. But after signing legislation last month stripping Disney of its district, the governor also said he would support rules for special districts that ensure transparency and an even playing field under the law.. .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;}Sign In, Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved, bill that would terminate a special tax district, Save up to $15 with TurboTax coupon May 2023, Epic Bundle - 3x Expert Stock Recommendations, 15% OFF DIY Online Tax Filing Services | H&R Block Coupon, 10% TopResume Discount Code for expert resume-writing services, Groupon Deal of the Day - July: Up to 91% OFF w/ Groupon Coupon. Benjamin Valdez: That's one of the bigger issues that's come out of this. At the end of the day though, had we done nothing, I-4 would just be a parking lot around Universal Studios.. Benjamin Valdez: The official end of Reedy Creek is set to take effect in June 2023. Have we heard anything about removing corporate tax breaks for Disney or other big companies in Florida? On average, Democratic states' residents see a lifespan of more than two years longer than those living in Republican ones, according to a Newsweek analysis. Its complicated. But the relationship between the two started to sour that same year after Disney took a stricter stance on preventing the spread of COVID-19, mandating its workers show proof of vaccination and its theme park guests continue to wear face coverings. The district also has the power to create conservation areas, build its own airport, create water and sewage systems, build its own public utilities the list goes on. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Florida lawmakers have voted to strip Walt Disney of its special self-governing status amid a political clash between the company and the governor. On Monday, Florida Gov. What led to its passage? There are more than 500 active special districts in the eight-county greater Tampa Bay region that includes Hillsborough, Pinellas, Pasco, Hernando, Citrus, Manatee, Polk and Sarasota counties. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. I'm expecting that we're going to see more lawsuits like this potentially even from Disney within the next year. Governor Ron DeSantis signed it into law today. Many are defined by geography, such as a community or residential development. Disney operates like its own county government in Florida but that could change, now that Gov. Why DeSantis wants to end Disney World's special tax - POLITICO It's also possible Disney's and other affected independent districts will be able to work out a new arrangement before the formal changeover: The legislation expressly states that the districts can be "reestablished on or after June 1, 2023" the date that they would be dissolved as long as they comply with state laws. The federal judge took issue with ruling on that sort of a state-level contract. So hearing that when the consequences of this hearing, that the property taxes for Orange County, for example, might have to go up 20% to 25% next year, nobody wants that. This week: the most magical tax break on earth. It allows Disney to operate like its own county government and is responsible for municipal services such as power, water, fire prevention and road maintenance. Breaking Disney World Losing Its Special District Status Could Be 'Catastrophic' For Local Taxpayers Alison Durkee Forbes Staff Apr 22, 2022,11:24am EDT Listen to article Updated Apr 25,. They got rid of the First Amendment allegation and they added a little bit more of a state-level context to it to hopefully take it to that level. Other LGBTQ supporters have also denounced the bill, including President Joe Biden, and have said it could leave students open to bullying and even suicide. It can seize land via eminent domain even if the land falls outside the districts boundaries. DeSantis stressed on Monday that under the new structure, Disney would still be responsible for its municipal debts and local governments would not raise taxes. That tax currently amounts to . David D. Stewart: Let's start with some background. So, they set up a board of DeSantis . DeSantis revoked Disney's special status. Florida taxpayers may - NPR Florida Republican Gov. So it gets to ask itself for permission to do things, and it gets to direct itself, in a sense, for other things. Some local officials, including Orange County Mayor Jerry Deming expressed concern that assuming control of the district's assets might result in the need for additional taxes or tax increases. David D. Stewart: Welcome to the podcast. Ron DeSantis signed into law a bill that would terminate a special tax district that has allowed Walt Disney Co. to self-govern the land that houses its Orlando-area. Dissolving the district would mean the company could no longer finance improvements through municipal bonds, which carry tax advantages. Above, a general view of the Walt Disney World 'Partners' statue is seen at Magic Kingdom, celebrating its 50th anniversary on April 3, 2022. 5 min read As Disney ( DIS) grapples with the aftermath of Florida Governor Ron DeSantis revoking the company's special tax district, some experts say the. Following the vote, Disney's special district will be dissolved on 1 June, 2023. Ron DeSantis wants out of his legal battle with Disney, according to court records filed by his attorneys this week. Benjamin Valdez: Yes. In April, Florida Governor Ron DeSantis (R) signed legislation that will eliminate the Walt Disney Could Floridas clampdown on Disney have a ripple effect in your neighborhood? But I would say that they're certainly a lot more common. David D. Stewart: What kind of reactions have we seen on both sides of the aisle to this law? Benjamin Valdez: The main thing we want to watch for is a detailed plan regarding how the district's going to break down and how this is going to affect local taxpayers. The legislation might 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 service and water. It even taxes itself. Can France prevent tensions igniting again? DeSantis and the GOP legislature originally tried to end Disney's special tax status in the state, but it risked being too costly for local taxpayers. The Florida Legislature allowed Mr. DeSantis to take away Disney's special status in 2022 until it realized that the abolishment of the district set for June 1, 2023 would require. In 2021, the governor's staff reportedly worked with Disney to give it an exemption from a law designed to crack down on big tech companies. It had 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. If the district is dissolved, Florida state law specifies that the assets and debt from the district will be transferred to neighboring localities. Disney also said in a statement after "Don't Say Gay" was signed into law that it "should never have passed and should never have been signed into law."

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