Posted on Apr 27, 2022
Florida actually dissolving Disney's special status unlikely since 'consequences too dire,'...
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As Disney (DIS) grapples with the aftermath of Florida Governor Ron DeSantis revoking the company's special tax district, some experts say the dissolution might not even happen.
Still, the bill was signed into law by Governor DeSantis on Friday and, barring any major backpedaling on the part of lawmakers, will go into effect in June 2023. Disney could also sue Florida for retaliation in an attempt to thwart the legislation, although experts say it is more likely that the media giant will enter into negotiations to alter the terms of the district.
That means Disney controls all of its utilities and infrastructure, sets building codes, operates its own police and fire departments, and can expand and grow whenever it wishes — all without local or state government interference.
"I call it a Vatican with mouse ears, because it's essentially the same kind of authority that the Vatican has in Rome in the state of Italy," the historian said.
Consequently, the district (in addition to providing immense control and flexibility) saves the company tens of millions of dollars every year in certain taxes and fees.
Still, the bill was signed into law by Governor DeSantis on Friday and, barring any major backpedaling on the part of lawmakers, will go into effect in June 2023. Disney could also sue Florida for retaliation in an attempt to thwart the legislation, although experts say it is more likely that the media giant will enter into negotiations to alter the terms of the district.
That means Disney controls all of its utilities and infrastructure, sets building codes, operates its own police and fire departments, and can expand and grow whenever it wishes — all without local or state government interference.
"I call it a Vatican with mouse ears, because it's essentially the same kind of authority that the Vatican has in Rome in the state of Italy," the historian said.
Consequently, the district (in addition to providing immense control and flexibility) saves the company tens of millions of dollars every year in certain taxes and fees.
Florida actually dissolving Disney's special status unlikely since 'consequences too dire,'...
Posted from aol.com
State of Florida
Orlando
Law
Edited 2 y ago
Posted 2 y ago
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When this was in the News I wondered how this was going to affect Roads, Water and Sewage, etc for either the State or Local community.
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The dissolution doesn't take effect for over a year.
As DeSantis has stated, legislation will be passed to ensure that Disney takes care of its debts, pays its taxes, etc.
As the primary entity and beneficiary of the special taxing district that allowed Disney to raise taxes and issue bonds for repairs, building, roads, fire fighters, security, and more, it is in Disney's interest to ensure business remails as close to usual as possible.
I see a couple of possibilities here:
1) Disney negotiates with the State of Florida to reconstitute the special tax district or as much as possible. If this happens, Disney will have to compromise with Florida. This could be the ouster of the CEO and change of recent policies regarding liberal activism.
2) Disney tries to fight it and the State enacts new laws requiring Disney to pay higher taxes, assume it's bond burden, require it to either provide its own services such as fire, or contract through the County. If this occurs, Disney would be hurting. They would have to go through the County for any road or building improvements, new structures, code enforcement, etc. In other words, there operations would be impacted considerably.
As DeSantis has stated, legislation will be passed to ensure that Disney takes care of its debts, pays its taxes, etc.
As the primary entity and beneficiary of the special taxing district that allowed Disney to raise taxes and issue bonds for repairs, building, roads, fire fighters, security, and more, it is in Disney's interest to ensure business remails as close to usual as possible.
I see a couple of possibilities here:
1) Disney negotiates with the State of Florida to reconstitute the special tax district or as much as possible. If this happens, Disney will have to compromise with Florida. This could be the ouster of the CEO and change of recent policies regarding liberal activism.
2) Disney tries to fight it and the State enacts new laws requiring Disney to pay higher taxes, assume it's bond burden, require it to either provide its own services such as fire, or contract through the County. If this occurs, Disney would be hurting. They would have to go through the County for any road or building improvements, new structures, code enforcement, etc. In other words, there operations would be impacted considerably.
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