Widely seen as a contender for the 2024 GOP presidential nomination, DeSantis is locked in a bitter and public feud with the entertainment giant over the company’s denouncement of Florida’s HB 1557 law last month. While proponents of the bill have denied that it is a retaliatory act against Disney, critics see it as retribution for publicly quarreling with the governor.
Reedy Creek was created in 1967 by the Florida legislature so Disney could develop the infrastructure for Walt Disney World at no cost to Florida taxpayers. Disney established and continues to maintain more than 130 miles of roadways and 67 miles of waterways as well as government services such as fire protection, emergency services, water, utilities and sewage.
Tax experts and legislators say eliminating the district could have unintended consequences for county taxpayers. Disney’s special tax district status allows the company to levy an additional tax on itself to pay for municipal services, something that other counties cannot do. That tax currently amounts to $105 million per year, said Orange County tax collector Scott Randolph. Reedy Creek also receives additional revenue of nearly $60 million from Disney to pay its bond debt.
Sunsetting Reedy Creek means that local counties will begin paying for those services without that special status in place. Taxpayers will likely be left to foot the bill for potholes and emergency services.
The counties would also absorb Reedy Creek’s debt. The district historically operates at a loss of around $5 million to $10 million each year, according to its financial reports. But since Disney can subsidize its own operations with theme park revenue, that debt doesn’t have much impact on its bottom line.
According to lawmakers, there’s around $1 billion in debt on the balance sheet that taxpayers would become responsible for should the special district get absorbed, leading to higher taxes.
And salvaging those budgets won’t be easy. State law prohibits counties from raising sales taxes or impact fees to cover costs, and they must tax all areas of the county equally. So, whatever they enact will apply to everyone.
Randolph said the county will likely have to raise property taxes by 20% to 25% to make up the difference.
Saw some Florida professor on Smerconish. He said Orange and Osceola counties (updated: Disney is in both) don’t want this. Disney does a great job of managing the property, and that takes a lot of work that would now fall to the counties. He pointed out that this law doesn't go into effect until 2023, unlike every other law passed in the state during the current session. Those will go into effect in July 2022.
He mentioned the possibility that the counties might create a special taxing district and give Disney back its powers. I wasn't following closely and missed the details.
I very much doubt that this bill was in the works until shortly after Disney took its stand, so it's pretty obvious it's retaliatory. And since corporations are people, what about Disney's 1st Amendment rights to free speech?
This all sucks.
-------------------------------- When the world wearies and society ceases to satisfy, there is always the garden - Minnie Aumônier
Posts: 38226 | Location: Somewhere in the middle | Registered: 19 January 2010
Disney gonna do what's in Disney's best interest. They're not going to sacrifice long run profits to keep little motels and area restaurants in business. Nor should they.
On the other hand, I suspect they're not yet close to the margin of leaving. The fixed costs of rebuilding that infrastructure elsewhere is huge, and they would only do it if that rebuilding effort allowed them to position themselves better for the next fifty years relative to staying in Orlando.
Posts: 12759 | Location: Williamsburg, VA | Registered: 19 July 2005
Never imagined that Disney would do anything to save the businesses around it. No doubt many of those businesses backed DeSantis.
No doubt the cost of rebuilding will estimated and discarded. Disney and many Floridians will probably increase their efforts to rid the state of the DeSantis pestilence.
-------------------------------- Several people have eaten my cooking and survived.
Posts: 25850 | Location: Still living at 9000 feet in the High Rockies of Colorado | Registered: 20 April 2005
Good for Disney