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disney special tax status explained

Florida Governor Ron DeSantis signed a bill into law Friday. NICK PAPANTONIS: The way to think about a special district is like thinking about it like a city. There's a lot of red tape now involved.". Distribution and use of this material are governed by Florida Gov. In an aerial view, Walt Disney World's iconic Cinderella Castle is seen on the grounds of the theme park this February. USA TODAY. A portion of the property taxes paid by Universal that would normally go toward general government are used to pay for public infrastructure improvements near the park. A huge benefit of special districts is making tax-exempt purchases for the services they provide and issuing municipal bonds for major infrastructure projects at a much lower interest rate, said Chris Lyon, an attorney who deals with special districts. Have we seen any lawsuits on this yet? Ron DeSantis' battle with the Walt Disney Co. intensified after he pushed state lawmakers to strip the California-based entertainment giant of a special status that. David D. Stewart: When should we expect to see the changes from this law go into effect? Ron DeSantis took control of Disney's special tax district. Opponents say it's simply censorship. Could Floridas clampdown on Disney have a ripple effect in your neighborhood? Florida is home to more than 1,800 special districts of all shapes, sizes and flavors, from housing and community development districts to quasi-governmental agencies. DeSantis says that the special district surrounding Disney World has enabled the park to unfairly skirt local rules and building codes. There are more than 500 active special districts in the eight-county greater Tampa Bay region that includes Hillsborough, Pinellas, Pasco, Hernando, Citrus, Manatee, Polk and Sarasota counties. After it became law, Disney promised to push for its repeal and fight similar bills across the US. But getting rid of these districts can be tricky. Disney's Special Tax District, Explained [Video] - AOL Does it affect other districts? The Florida Legislature allowed Mr. DeSantis to take away Disney's special status in 2022 until it realized that the abolishment of the district set for June 1, 2023 would require. The Florida legislature led by Republicans on Thursday passed a bill to cancel the special tax district of Walt Disney World in the state, a decision with billion-dollar implications for the . Benjamin Valdez: Yes. DeSantis and Disney have been feuding for months over Floridas Parental Rights in Education bill. Disney to lose special tax status for opposing Florida's 'don't say gay Disney's special tax district in Florida, explained - The Washington Post The bill will undercut Disney's autonomy, but it could impose a steep cost on Orange and Osceola counties, where the theme park is located. See here for a complete list of exchanges and delays. Ron DeSantis Strips Disney of Special Tax Status - Newsweek "In recent weeks, the tensions heightened when Disney CEO Bob Chapek said he'd support the repeal of Florida's Parental Rights in Education Act, a measure critics call 'Don't Say Gay,' " as NPR's Greg Allen reported. Fla. lawmakers pass bill revoking Disney's special tax status It even taxes itself. And its unique structure has helped the Walt Disney Co. develop the property into the top theme park destination in the world. The land measures 25,000 acres nearly 40 square miles in Central Florida. .css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;}Ron DeSantis signed into law a bill that would terminate a special tax district that has allowed Walt Disney Co. to self-govern the land that houses its Orlando-area theme parks, hotels and resorts. Visit our website terms of use and permissions pages at www.npr.org for further information. They might also have to pick up the tab for $58 million in debt service. But the move by DeSantis, a likely 2024 contender, and the Republican Legislature represents a major escalation in the fight. after a petition accusing it of "stereotypical racist tropes" gained 21,000 signatures. WHAT IS THE SPECIAL TAXING DISTRICT AND WHY WAS IT SET UP? SHAPIRO: So if that gets undone and suddenly the surrounding counties, Osceola and Orange counties, are responsible for everything from sewer to permitting to filling potholes, what does that actually mean? Hillsborough has more than 170. This text may not be in its final form and may be updated or revised in the future. Why is it there? That tax currently amounts to . The law became the newest development in a public feud between DeSantis and Disney, who have clashed for weeks ever since the entertainment giant spoke out against a controversial piece of DeSantis-backed legislation commonly referred to as the "Don't Say Gay" law by critics. Disney operates like a county government, building and maintaining municipal services like electricity, water and roads, and providing police and fire protection. Overwhelmingly, though, this is not a popular move in the counties itself. Its unclear what this could mean for the millions of Floridians served by special tax districts. Disney to lose special Florida tax status - Yahoo News June of 2023, that's 15 months from now. Heres a different strategy | Column, Redistricting wrangling goes to Florida Supreme Court. Florida Gov. DeSantis signs bill revoking Disney's special district status In practice, the arrangement gives Disney control over municipal services and autonomy when it comes to how the land is used and developed, exempting it from some regulations. And we also don't have insight into the minds of every single legislator. Factbox: What is the special tax designation Disney might lose? It seems like they are sort of considering these districts and Reedy Creek in particular to be a unique sort of benefit that doesn't amount to the same kind of corporate tax break that we might see otherwise. He said during a West Palm Beach press conference shortly after signing "Don't Say Gay" into law late last month that Disney "has alienated a lot of people now.". Why DeSantis wants to end Disney World's special tax - POLITICO But Disney's special relationship with the state of Florida came under threat over its response to a gender and sexuality education bill signed by Mr DeSantis last month. DIS Dependent special districts have local oversight. Disney will continue to pay taxes. Every special district should be evaluated., While noting the number of special districts in Florida last week, DeSantis said there is nothing wrong with a special district. But after signing legislation last month stripping Disney of its district, the governor also said he would support rules for special districts that ensure transparency and an even playing field under the law.. Benjamin Valdez: Yeah. Ron DeSantis has signed a new bill lawmakers approved this week. In an aerial view, Walt Disney World's iconic Cinderella Castle is seen on the grounds of the theme park this February. SHAPIRO: That's Nick Papantonis, reporter with WFTV in Orlando. David D. Stewart: Well, I know in general, whenever legislation gets rushed, we usually see litigation soon after. The political skies are cloudy in the Sunshine State, and it could be the smoke from the culture wars below. | Florida travel warning | Amsterdam says stay away | Orlando haters guide | Real-life White Lotus | Misbehavior at national parks | Scariest places | Disney prices, Airbnb: Is there an Airbnbust?' DeSantis' previous pledge to strip Disney of its special tax status sparked fears that local taxpayers would be left on the hook, which would, in turn, spark a significant spike in local tax rates. GAINESVILLE, Fla. Gov. But its sweeping changes wouldn't come into force until next summer, on June 1, 2023. The Complicated Future of Student Loans - The New York Times Photo: AP . Ron DeSantis signed a bill on Monday to take control of municipal services and development for the special zone encompassing Walt Disney World. Above, a general view of the Walt Disney World 'Partners' statue is seen at Magic Kingdom, celebrating its 50th anniversary on April 3, 2022. DeSantis want a trial with Disney until 2025? Florida lawmakers have voted to strip Walt Disney of its special self-governing status amid a political clash between the company and the governor. "At the time, DeSantis said he believed Disney had 'crossed the line.' But one of the possible changes is that Disney will now have to go through the local counties to do things, to build projects, to pay for things that it normally would do on its own. Disney's Special Tax District in Florida, Explained | WSJ Last week, the Supreme Court struck down President Biden's sweeping plan to cancel billions of dollars in student loan debt. In 2021, the governor's staff reportedly worked with Disney to give it an exemption from a law designed to crack down on big tech companies. Can France prevent tensions igniting again? Ron DeSantis signed into law a bill that would terminate a special tax district that has allowed Walt Disney Co. to self-govern the land that houses its Orlando-area. Once a remote and rural area, the Reedy Creek Improvement District received electricity, water, roads and police thanks to Disney's investments. The measure lawmakers are considering would not permanently terminate the Reedy Creek Improvement District, but it would phase it out on June 1, 2023, and allow the special district to reestablish on or after that date. Some local officials, including Orange County Mayor Jerry Deming expressed concern that assuming control of the district's assets might result in the need for additional taxes or tax increases. Florida-based Disney is only the latest target in his crosshairs, and the so-called "Don't Say Gay" bill just one of a string of conservative laws with Tallahassee origins grabbing national headlines. This leaves some time for the DeSantis administration and lawmakers to gather a more formal plan on how they want it to take effect and then what might happen. Lori Rozsa, Beth Reinhard 4/28/2022 Florida Gov. A local official said taxpayers could now be on the hook for a roughly $163 million bill. our Subscriber Agreement and by copyright law. The newly appointed board will have the ability to raise revenue to fund services and pay off Disney's debts. Republicans in Florida decided to revoke it after Disney criticized the new law that limits discussion of LGBTQ issues in the classroom, the law that opponents describe as Don't Say Gay. It has the states permission to build a nuclear power plant. They got rid of the First Amendment allegation and they added a little bit more of a state-level context to it to hopefully take it to that level. opposing an education bill that restricts classroom discussion around gender identity and sexual orientation, a news conference announcing the move on Monday, DeSantis wanted to punish Disney. The district, in turn, provides services, including fire response, emergency medical services, water and sewage treatment, and can issue municipal bonds to finance infrastructure projects, which comes with tax advantages. These districts have the power to issue bonds, levy assessments or charge fees to pay for infrastructure, services or improvements. Governor Ron DeSantis is leading a charge, with a general's eagerness for combat and a politician's eye for opportunity. Disney World's special status dealt another blow by Florida Gov. Ron SeaWorld also sits within a special district. Governor Ron DeSantis signed it into law today. The heart of the bill is the appointment of a five-person state board to oversee municipal services, such as fire protection and road maintenance, where Disney World operates. The status gave Disney powers to levy tax, build . Walt Disney World paid $780.3 million in state and local taxes in 2021. There's a lot more of them than people might realize, especially now that this one has been in the limelight. Does Universal benefit from those infrastructure improvements? David D. Stewart: Let's start with some background. Disney's special tax district status allows the company to levy an additional tax on itself to pay for municipal services, something that other counties cannot do. Benjamin Valdez: Certainly it's going to affect their Orlando operations if the district is dissolved as planned. Florida Republican Gov. Amid outcry from critics over the "Don't Say Gay" legislation, Disney also came under fire for initially refusing to publicly condemn the law when it was still a bill, and after it was discovered that the company had donated at least $250,000 to senators that voted for it. This week: the most magical tax break on earth. Letsgetstarted. Disney even controls who sits on the five-member board that governs the district. The situation quickly prompted warnings that county property taxes will sharply rise. The U.S. Attorney's Office has announced two Louisville nursing homes will close after multiple violations were found amid a nationwide backlog of inspections. David D. Stewart: How will this law affect Disney's operations in Florida? In response, Mr DeSantis said the company, which has made Florida its home, had "crossed the line". Florida Gov. DeSantis revokes Disney's special tax status Rather than having the district brought under the control of nearby municipalities, he said hed like to see the state assume jurisdiction over the district. Yes, because they can get more visitors and a better experience for their tourists, said Chris McCullion, the City of Orlandos chief financial officer. A special district is a unit of local government, according to the Florida Constitution, created by the Legislature or another branch of local government, like a city or county, for a specific purpose. Benjamin Valdez: That's one of the bigger issues that's come out of this. Florida lawmakers have voted to strip Walt Disney of its special self-governing status amid a political clash between the company and the governor. This extra layer of tax that the district has is illegal outside of the district, and the counties can't replace it. Opponents say the law will isolate and stigmatise LGBT youth, while supporters say it protects children from age-inappropriate content. Local governments have given some special privileges to Disneys theme park competitors. The lawsuit had also alleged that given the contract of Reedy Creek requiring the state to pay off its bond debt that it wasn't allowed to happen. I'm David Stewart, editor in chief of Tax Notes Today International. It also means Disney doesnt need approval from local planning commissions if it wants to build new structures. But well do our best to answer six questions you might have. The BBC is not responsible for the content of external sites. Ron DeSantis battle with the Walt Disney Co. intensified after he pushed state lawmakers to strip the California-based entertainment giant of a special status that allows the company to essentially operate its own government in Central Florida. Stacy Cowley, a finance reporter for The New York Times, explains . So hearing that when the consequences of this hearing, that the property taxes for Orange County, for example, might have to go up 20% to 25% next year, nobody wants that. Ben, this has been great. The flurry of bills aimed at exciting conservative voters boils down to one important date: 5 November, 2024 - the next US presidential election day. Walt Disney Co. proposed the Reedy Creek Improvement District in the mid-1960s in a remote area of Orange and Osceola counties. Its seven-member board includes five gubernatorial appointees, along with Tampas mayor and one Hillsborough County commissioner. David D. Stewart: How does the law change the surrounding counties and local governments? Heres a quick breakdown of what the district is, why Floridas Republican-led legislature voted to get rid of it and what that might mean. But the relationship between the two started to sour that same year after Disney took a stricter stance on preventing the spread of COVID-19, mandating its workers show proof of vaccination and its theme park guests continue to wear face coverings. The bill bans classroom instruction on gender identity and sexual orientation from kindergarten through third grade. Local officials created the Universal portion of Orlandos community redevelopment area in the 1990s to ease congestion around Interstate 4. In the case of Disney, some conservative leaders have said their motivation for dissolving the special district is not political. Ron DeSantis signed a bill Friday nixing the Walt Disney Company's sweet tax deal with the state after the entertainment giant opposed its so-called " Don't Say Gay" law. Theyre state entities, subject to the same transparency and public records laws as other branches of government. Within the counties, it's hard to get a gauge, obviously, on every single citizen's opinion. The evidence DeSantis retaliated against Disney - The Washington Post By Winston Cho February 7, 2023 4:46pm Walt Disney World Mark Ashman/Disney Parks/Getty Images Despite a Florida bill empowering Gov. And so the question is, why would you want to have special privileges in the law at all? The legislation might end up increasing the tax burden on Orange and Osceola residents, who would have to foot the bill for all the services Disney pays for through the special district, including roads, fire service and water. Ron DeSantis signed a law Friday stripping Disney of its special self-governing tax district, known as the Reedy Creek Improvement District, surrounding Walt Disney World. Disney to Keep Special Perks for Special Tax District - The Hollywood The governor said the five board members include people who "very much want to see Disney be what Walt envisioned," implying that Disney's values wouldn't be negatively impacted. Examples include Port Tampa Bay, the Hillsborough County Aviation Authority and the Tampa Sports Authority. It had given the entertainment giant freedom from almost all bureaucratic intervention for half a century and is thought to have saved it from tens of millions of dollars in taxes and fees. And to top it off, he recently signed into law a ban on abortions after 15 weeks of pregnancy, with no exemptions for rape or incest. According to the Associated Press, the law left open the possibility that Disney's district and others also set to be dissolved could be reestablished with a reworked deal, though it was not immediately clear what such a deal would look like. DeSantis said Disney "crossed the line" by opposing an education bill that restricts classroom discussion around gender identity and sexual orientation. Ron DeSantis on Friday signed a bill stripping Disney World of its status as an "independent special district," fulfilling his request to punish the Disney company for its stances on. David D. Stewart: Looking out into the future, what should we be keeping an eye on in the near future regarding this law? Ron DeSantis took control of Disney's special tax district. Benjamin Valdez: As of now, it seems that Disney's other tax breaks in the state, which actually includes tax incentives for a new office complex, haven't been targeted. Benjamin Valdez: Florida has over 1,800 special districts, and they're basically miniature local governments that can provide essential services and create their own infrastructure. The industry leader for online information for tax, accounting and finance professionals. This includes roads, utilities, even fire departments. Disney will officially be stripped of its self-governing rights more than 55 years after a state law granted it the special status. Florida Gov. The governor has also weighed in on the battle over Twitter, vowing to take on the company's board of directors over their tussle with Elon Musk. Benjamin Valdez: While the bill appears to have been aimed at Reedy Creek, because it dissolves any districts created before 1968, it actually applies to five other independent special districts of Florida. Ron DeSantis on Friday signed a bill stripping the Walt Disney Company of its special tax status in the Orlando . Florida is ending Disney's special tax district. Here's what - NPR David D. Stewart: Now, you mentioned that the legislature was looking more generally at these special tax districts. PAPANTONIS: The intention was to punish Disney for speaking out against the Parental Rights and Education bill, which more popularly known as the Don't Say Gay bill. The lawsuit also claimed, on Disney's behalf, that the company's First Amendment right was violated when the bill to dissolve Reedy Creek was passed. Disney betrayed us, and the corporation that Walt Disney started which was a beacon of family values has now been perverted by a woke mob of liberal extremists, Rep. Jackie Toledo, R-Tampa, said last month. There's also been the banning of maths textbooks that the state deemed inappropriate for the classroom. This has created a bit of confusion around how the whole law will go into effect. The company donated to DeSantis during the 2020 election cycle. 0:51. Detours with locals. Florida Gov. Breaking Disney World Losing Its Special District Status Could Be 'Catastrophic' For Local Taxpayers Alison Durkee Forbes Staff Apr 22, 2022,11:24am EDT Listen to article Updated Apr 25,. Hillsborough County has more special districts than any other county in Florida. What does the special district do for Disney? NPR's Ari Shapiro talks to reporter Nick Papantonis of WFTV about the effect that revoking Disney's special tax district will have on local taxpayers.

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disney special tax status explained