Tallahassee, Apr 22: Walt Disney Co is set to lose its special tax status in Florida after the state’s legislature signed a new bill scrapping the company’s self-governing status in its Orlando theme park.
The bill is expected to be signed into law by Florida Governor Ron DeSantis, who has criticized Disney for its opposition to a bill banning discussions on sexual orientation and gender identity for students under age 9. DeSantis is a member of the Republican Party.
The bill has been labeled the “Don’t Say Gay” law by critics.
Why is Disney’s special status being revoked?
In March, Florida’s government passed a law banning discussions on sexual orientation and gender identity for small children. Disney initially avoided taking a stand on the legislation, but later halted political donations in Florida following pressure from some of the company’s employees and LGBTQ rights groups.
In the 2020 election cycle, Disney donated $4.8 million (€4.4 million) in total to political campaigns. This included campaign funds for Florida legislative members, some of who sponsored the legislation removing Disney’s special status.
The company donated more than $900,000 to Florida’s branch of the Republican party, $550,000 to the Republican senatorial campaign committee and $50,000 to DeSantis. Disney also donated $300,000 to Florida Democrats.
— Walt Disney Company (@WaltDisneyCo) March 11, 2022
CEO Bob Chapek openly criticized the law before the company halted its donations, explaining his change of stance in a letter to Disney employees.
“Speaking to you, reading your messages, and meeting with you have helped me better understand how painful our silence was. It is clear that this is not just an issue about a bill in Florida, but instead yet another challenge to basic human rights,” Chapek said, apologizing for the fact that Disney had not sooner adopted any position on the issue.
“If Disney wants to pick a fight, they chose the wrong guy,” DeSantis recently wrote in a fundraising email.
BREAKING: Disney is a guest in Florida. Today, we remind them. @GovDeSantis just expanded the Special Session so I could file HB3C which eliminates Reedy Creek Improvement District, a 50 yr-old special statute that makes Disney to exempt from laws faced by regular Floridians.
— Rep. Randy Fine (@VoteRandyFine) April 19, 2022
“Disney is a guest in Florida. Today we remind them,” Republican lawmaker Randy Fine tweeted.
Disney doesn’t say a word about the dictatorship in #China because it would cost them billions of $’s
— Marco Rubio (@marcorubio) April 21, 2022
“Disney doesn’t say a word about the dictatorship in China because it would cost them billions of dollars,” Republican Senator Marco Rubio said in a tweet. “But they have no problem using their corporate power to lie about laws passed by democratically elected legislators in Florida.”
What was the special status conferred to Disney?
The southeastern US state of Florida declared a special area, the Reedy Creek Improvement District, in 1967 to facilitate the construction of the Disney World theme park near the city of Orlando. The city of Orlando grew rapidly on the back of the tourism brought to the area.
The Disney district covers 100 square kilometers and includes the cities of Bay Lake and Lake Buena Vista as well as land in Orange and Osceola counties in central Florida.
Disney runs the district and is responsible for collecting taxes and guaranteeing municipal services such as fire-fighting, energy, garbage collection, water treatment and road maintenance. In exchange, the company has been exempted from paying taxes in the territory.
Under Florida law, if the district is dissolved its assets and debts could be transferred to local governments that surround the area.
I voted to oppose Gov DeSantis’ bill & culture war w/Walt Disney World abolishing #ReedyCreek district. Bill passed senate 23-16.
Removing district could transfer Billion debt from Disney to taxpayers & could potential have an enormous impact on Orange & Osceola residents!
— Linda Stewart (@LindaStewartFL) April 20, 2022
“Removing the district could transfer $2 billion (€1.85 billion) debt from Disney to taxpayers,” Democratic Senator Linda Stewart argued.
sdi/msh (AFP, Reuters)
Denial of responsibility! Planetconcerns is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.