JACKSONVILLE, Fla. — Florida Gov. Ron DeSantis announced Tuesday he’ll seek to eliminate Disney’s special taxing district when the Legislature meets this week, a move that follows the theme park giant’s criticism of a new state ban on sex education for early elementary grades.
Mr. DeSantis told supporters at an event in The Villages that he plans to call on the state Legislature to terminate all special districts enacted in Florida before 1968.
State lawmakers are meeting this week to consider the realignment of congressional districts.
Mr. DeSantis’ announcement specifically targets Disney’s one-of-a-kind special taxing and governing district. It was approved in 1967 at the behest of Walt Disney, who sought independence from state and local governance in order to build and expand his theme park empire.
The district enjoys special autonomy and authority over 39 square miles in Orange and Osceola counties, including the Disney theme parks and resorts, more than 170 miles of roads, and the cities of Bay Lake and Lake Buena Vista.
It’s governed by an independent board of supervisors chosen by landowners in the district and is not subject to oversight from county governments.
The effort to end the special district follows vocal opposition by Disney executives to the DeSantis-backed Parental Rights in Education law, which bans schools from teaching sex education to students in kindergarten through third grade.
Following protests by theme park employees against the bill, Disney announced public opposition to the legislation, which critics have labeled the “Don’t say gay” bill, even though the legislation only references sex education. Disney executives urged Mr. DeSantis not to sign it into law.
Mr. DeSantis accused Disney of “demagoguing” the legislation and questioned the existence of the company’s autonomous district at a press conference earlier this month. He told a crowd of supporters that Disney has “special perks” and that “as a matter of principle, I don’t support special privileges in law just because a company is powerful and they’ve been able to wield a lot of power.”
Florida House member Spencer Roach, a Republican, said state lawmakers have met twice to discuss eliminating the Reedy Creek district, posting on Twitter: “If Disney wants to embrace woke ideology, it seems fitting that they should be regulated by Orange County.”
A Disney spokesperson did not immediately respond to a request for comment.
The Reedy Creek Improvement District, which encompasses Disney, is considered a one-of-kind arrangement in the U.S.
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It operates as an independent tax district, and its status as an improvement district has provided the company with millions of dollars in tax breaks on development and construction over the years that it would otherwise have had to pay to Orange County and Osceola County.
The special district does not exempt Disney from paying property taxes — the theme park giant paid nearly $300 million in property taxes between 2015 and 2020. The park contested the tax bill in court, arguing the county overvalued the property. Orange County settled with Disney and plans to issue an $8 million refund.
The district includes two cities — Bay Lake, which includes the four Disney theme parks, and Lake Buena Vista, which incorporates the Downtown Disney shopping area and surrounding hotels.
There are only a few dozen residents who live in Reedy Creek. They are hand-selected by the company and are Disney workers or Disney retirees who purchase trailers to live in on the property.
These residents, according to the Orlando Sentinel, provide the votes needed for Disney improvement bonds and other development and operational matters.
Two city councils made up of residents vote on pollution-control board appointments, hours for alcohol sales during special events at the theme parks, and other issues. The district levies taxes on landowners and provides many services, including road maintenance, water management and a fire department, but it does not have a police department.
The two city councils oversee a contract with the Orange County Sheriff’s Office to patrol the district and theme parks.
The district’s independent status allows Disney to avoid state and local oversight and regulations on construction, which Walt Disney believed was critical for the development of the original park more than 50 years ago.
Disney is authorized to build nearly anything. State GOP lawmakers skeptical of the arrangement said the park conceivably could build a nuclear power plant or an airport.
If the independent district is repealed, Disney would be subject to Osceola and Orange County planning and zoning laws, as well as building inspections, and would be required to pay new fees and taxes that it is exempted from paying under its status as an improvement district when it expands or builds on the property.
• Susan Ferrechio can be reached at sferrechio@washingtontimes.com.
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