Legal Issues

Disney Sues DeSantis, Escalating Fight In Florida

Disney Sues DeSantis, Escalating Fight In Florida

The Walt Disney Company has sued Florida Governor Ron DeSantis (R), escalating the ongoing situation between the company and the state government regarding Disney's special tax status and other benefits. 

The Reedy Creek Special Tax District encompasses the entirety of Walt Disney World Resort, overseeing land use and environmental protections, and providing fire protection, emergency medical services, potable water production, treatment, storage, pumping & distribution, reclaimed water distribution, chilled and hot water systems, wastewater services, drainage and flood control, electric power generation & distribution, and waste disposal.

disney-skyliner-gondolas
Credit: TaxBuzz

The District also regulates the EPCOT Building Code.

The District’sofficial websiteshares the following information about its operations:

“ …[Reedy Creek is] a progressive form of government, created in 1967 by a special Act of the Florida Legislature, the purpose of which is to support and administer certain aspects of the economic development and tourism within District boundaries. ”

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In April 2022, Florida Governor Ron DeSantis signed a bill that would dismantle Disney’s special tax district. At the time, The Washington Post noted that “Disney said its goal as a company was for the law to be repealed or struck down — a statement that infuriated DeSantis.”

In his latest public remarks about the situation last week, DeSantis announced that the Florida Legislature would attempt to "void" a development agreement Disney constructed to nullify the Governor’s potential takeover of Reedy Creek.

Additionally, per Tallahassee.com, DeSantis named several other measures he intends to implement in order to exert more state control over Disney’s properties and business operations.

GettyImages-2063749_resized_Disney
Credit: Chris Livingston/Getty Images

Disney -- once again helmed by CEO Bob Iger after Bob Chapek stepped down in November 2022 -- has vowed to fight back, and now they have.

Per a new CNBC report, the company today filed a lawsuit that states, in part, that DeSantis "has waged a relentless campaign to weaponize government power" against the entertainment giant. The outlet noted that this "dramatically escalates" the battle between the Republican Presidential hopeful and one of the world's most powerful companies. 

With over 70,000 employees, Disney is the largest employer in the Sunshine State. 

Stay tuned to TaxBuzz for additional updates, as this is breaking news.

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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