Zinger Key Points
- Orange and Osceola counties have balked at inheriting Disney's $1 billion bond debt.
- Changes to the state's laws are unlikely before the November elections.
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The ongoing feud between Walt Disney Co. DIS and Florida Gov. Ron DeSantis took yet another turn as the governor insisted he wants the state and not the county government to take control of Disney’s Reedy Creek Improvement District when it's scheduled to be dismantled in June 2023.
What Happened: Last month, Florida’s Republican-controlled legislature passed a DeSantis-advocated bill that dissolved Reedy Creek, a special tax district created by the state in 1967 when Disney began planning to set up theme parks in Central Florida. The dissolution of Reedy Creek followed Disney’s pledge to seek the overturning of the so-called “Don’t Say Gay” legislation that prohibits schools from teaching classes on sexual identity and orientation to students in kindergarten through third grade.
Under state law, the dissolution of a special tax district would result in the local county governments inheriting both the functions and debts of the district — in this case, Orange and Osceola counties. But Reedy Creek is carrying a nearly $1 billion bond debt and the counties said they could not inherit such a financial burden without hiking up taxes.
See Also: Is Disney Bringing Back Johnny Depp To 'Pirates Of The Caribbean' Franchise? What You Need To Know
What Happened Next: At a press conference on Monday, DeSantis acknowledged the state might have to step in to prevent the county governments from being crushed with the new costs that would be passed to them.
"More likely that the state will simply assume control and make sure that we're able to impose the law and make sure we're collecting the taxes," said DeSantis, according to CNN coverage of his press conference.
DeSantis has been vague on what a post-Reedy Creek environment would look like, and it appears there will not be any game plan approved by the state legislature until after the November elections.
Nonetheless, DeSantis continued to cast Disney – Florida’s largest private sector employer – as a political bogeyman and insisted the company will be responsible for honoring its bond debt.
"The path forward is Disney will not control its own government in the state of Florida," DeSantis added. "Disney will have to follow the same laws that every other company has to follow the state of Florida. They will pay their fair share in taxes."
Photo of Gov. Ron DeSantis by Gage Skidmore / Flickr Creative Commons
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