Florida Gov. Ron DeSantis on Monday canceled a $1.2 billion tax increase for Central Florida residents that was inadvertently imposed a year ago in a bill rushed to punish Walt Disney Co for criticizing the so-called “Don’t Talk About Gay” law.
“Corporate empire is over,” the Republican said, taking the lectern at a firehouse on Disney property.
Monday’s law unscheduled the dissolution of a special tax district for 25,000 acres owned by Disney south of Orlando, which lawmakers and DeSantis signed into law over three days last April.
A month earlier, Disney CEO Bob Chepak told company employees he regretted not vocally opposing the Parental Rights in Education Act and said he would suspend political donations in Florida.
The law, dubbed the “Don’t Talk Gay” law, prohibits teachers in early grades from discussing sexuality or gender. Critics argue that it prevents teachers in same-sex marriage, for example, from mentioning their spouses.
DeSantis and his allies say Disney will not be granted the privilege. But an unintended consequence of last April’s law was transferring outstanding Disney debt to 700,000 homeowners and businesses in Orange and Osceola counties.
If the law takes effect on June 1 as scheduled, the tax bill will increase by thousands of dollars each year until 2038, when Reedy Creek Improvement District bonds issued to pay for roads and other public works on Disney property will be paid off. dead.
The tax hike would be a political disaster for DeSantis, who is expected to announce a presidential bid this spring. The urgency to resolve the issue was reflected in his decision to include it in a special legislative session this month instead of waiting for the start of the regular session in early March. Florida’s governor has historically had more control over legislation during a special session than a regular 60-day session, where bills are often muddled with foreign language and caught in horse-trading.
DeSantis’ bill signed into law Monday repeals last April’s Disney law and gives him and future governors the task of appointing a board for Disney’s taxing district, named the Central Florida Tourism Control District. Otherwise, the district’s ability to issue bonds to pay for improvements on Disney properties.
DeSantis said he plans to officially elect a new five-person board later Monday. While those people had previously been chosen by Disney, they will now be DeSantis’ allies – including Bridget Ziegler, the wife of the state Republican Party chairman.
During Monday’s 45-minute bill signing, DeSantis used repeated misrepresentations and falsehoods to describe Disney’s previous and new tax and regulatory framework.
For example, DeSantis claims that Disney will eventually be forced to pay its “fair share” that it has avoided in the past. “You have the infrastructure that feeds into the theme park that all the residents of Central Florida pay for, and Disney is basically getting free rides. Now they can pay taxes,” he said.
In fact, Disney properties have one of the highest total tax rates in the country. It pays all taxes due to the district and school board for its acres, and then pays additional “plants” for roads, water and sewage, utilities, and fire and police protection on its own property.
At other times, DeSantis suggested that Disney’s spending on its own infrastructure has burdened Florida taxpayers. “They can get a lot of benefits without paying taxes, and they even get $700 million in municipal debt,” he said.
In reality, Disney’s bond debt is paid only by taxpayers within the boundaries of the Reedy Creek Improvement District – in other words, Disney itself, except for a few small parcels that have been sold to hotels.
Gaelen Morse, Marco Bello/Reuters
DeSantis said the new law puts Disney on par with all other Central Florida attractions: “Disney will be treated like SeaWorld is treated or like anything else.”
That’s not true either. While in the renamed space, Disney still has its own tax district, which Universal Studios and SeaWorld, for example, do not. And because the district is a tax-exempt entity, parking garages on Disney properties don’t have to collect sales tax, while those at other theme parks do.
DeSantis accused local governments of trying to take advantage of last year’s legislation to raise taxes. “It will prevent local governments dominated by leftist politicians from using this situation to raise local taxes,” he said of the new law.
But passing Disney’s accumulated debt to Orange and Osceola county taxpayers is not an option for county officials if Reedy Creek is dissolved. However, it is required under state law governing special districts.
DeSantis’ press office did not respond to HuffPost’s inquiries. As he has done throughout his tenure, DeSantis did not publicly announce the signing of the bill Monday morning until two hours before it began — making it impossible for reporters from the Tallahassee capital press corps who follow Disney’s legislation closely.
However, DeSantis called on firefighter union leaders who complained that Disney wasn’t paying them enough; a local mother who rejects Disney because she believes it no longer provides sane entertainment; and Disney World employees who used their time on the microphone to spread various falsehoods about the COVID vaccine.
DeSantis is widely expected in Florida to announce his candidacy for the Republican presidential nomination in 2024, challenging former President Donald Trump’s attempted coup.
Critics have criticized him for adopting Trump’s personality traits to win over voters. DeSantis on Monday fed the crowd even more by holding up the bill to show his signature to the audience and cameras — just as Trump usually does when he signs bills.