A 55-year-old agreement that granted Disney a special tax status and permitted it to basically self-govern its 25,000-acre Disney World complex has been terminated by Florida Governor Ron DeSantis and state legislators. The loss of that title is the most recent twist in Mr. DeSantiss ongoing conflict with the states largest private employer over a recently approved education bill. How did the rift develop into that state? Lets go through some history.
What Is the Battle Between Mr. De Santis and Disney About?
The governor approved a bill in March that forbids teachers from discussing or teaching about sexual orientation and gender identity in specific classrooms at elementary schools.
The Parental Rights in Education law, also known by its detractors as the Dont Say Gay bill, has sparked discussion about how it and other laws like it would affect kids across the country. Additionally, Florida law may alter how counseling and other mental health services are provided in schools.
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Conservatives have praised the measure, while many teachers and L.G.B.T.Q. activists have rejected it. Disney entered the conversation after being silent at first when its CEO, Bob Chapek, made repeated comments against the legislation.
DeSantis, a potential Republican presidential candidate in 2024, and other Republican state legislators were not pleased with Disneys reaction. Mr. DeSantis stated in a fundraising email to supporters that If Disney wants to create a fight, they chose the wrong guy.
What Do Republicans Have to Say About Disney?
Fox News hosts and Mr. DeSantis started criticizing Woke Disney politics in reaction to Disneys criticism of the education legislation.
It was not the first time the company has come under fire for taking positions that conservatives thought went too far. Disney has faced backlash from critics over the last few years for a number of adjustments it has made to both its theme parks and streaming services.
This includes Splash Mountain being rethemed in order to distance itself from the 1946 movie Song of the South, which featured a former slave telling African folktales as the inspiration for the ride. The movie was also removed from Disneys streaming library.
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What Was the Previous Special Tax Status of Disney?
Since it was granted special status in 1967, Disney World has virtually operated as its own local government. Despite being tucked between two counties, the theme park operated as a separate area known as the Reedy Creek Improvement District. As a result, the theme park was given the authority to plan and approve any construction projects on its grounds, levy taxes to cover its own fire and medical response costs, and even produce some of the electricity it needed.
According to analysts, the corporation was able to avoid paying millions of dollars in taxes and fees as a result of that position. Disney took use of the advantages of that status to expand its resort, which now features many theme parks, hotels, and a sizable bus fleet.
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The resort, which employs over 80,000 people, must now bargain with the governments of Orange and Osceola counties over using its services now that its special status has been lost. Additionally, some analysts predict that the shift could result in a 20 percent tax increase for the areas citizens.
What Has Disney Done in Response to Losing Its Rights to Self-Government?
Disney has not yet replied to the revocation of its special designation.
However, a number of governors from other states have reacted to the news by extending an invitation to the firm to relocate Disney World there.
According to Colorado Governor Jared Polis, officials in his state dont engage in business issues. While facing criticism from contemporary political fanatics like the governor of Florida, a county judge in Fort Bend County, Texas, suggested that Disney consider Fort Bend County as your next destination.
Future Plans
Uncertainty surrounds Disneys plans. It might try to get the special designation reinstated. The business could also scale back its planned expenditures for resort expansion.
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