Florida taxpayers could face a $1 billion Disney debt bomb if its special district status is revoked

[JasperL]

Disney went woke so now they're going broke. Enough tax breaks for mega companies already. Let them pay tribute the tax man like everyone else.

^^^^^ That is why DeSantis is doing what he's doing. The faithful don't care so long as he owns the liberals. The OP tells you the move transfers at least a $billion from Disney's balance sheet to the taxpayers, plus creates a more than $100 million/year shortfall for the local governments.

Reminds me of one of my dad's favorite sayings - "Don't cut your nose off to spite your face." The GOP in Florida are taking a meat cleaver to their own faces. Nice job morons!

 

[ClaraD]

True. It has been reported that if a new tax district is formed by the county/municipalities the tax applied would be less than what Disney is currently paying in its current tax district. Has something to do with existing Florida laws setting the rates.

Also don't forget the Bond debt.

The bond debt that transfers to the counties?

 

[Hamish Howl]

^^^^^ That is why DeSantis is doing what he's doing. The faithful don't care so long as he owns the liberals. The OP tells you the move transfers at least a $billion from Disney's balance sheet to the taxpayers, plus creates a more than $100 million/year shortfall for the local governments.

Reminds me of one of my dad's favorite sayings - "Don't cut your nose off to spite your face." The GOP in Florida are taking a meat cleaver to their own faces. Nice job morons!

 

[justoneman]

They actually cannot directly tax them extra and above...that violates taxation without representation. The status quo was the only way in Florida to tax them extra

They can directly tax the property with a specialty tax.

 

[ClaraD]

They can directly tax the property with a specialty tax.

They actually can't....their only option was the status quo...why do you think they use these little special governance zones?

 

[Mycroft]

Well this seems well thought out. The best part of basing your governance entirely on culture war is that it never, ever matters how badly you mess up. You could set the entire state on fire, and so long as a transexual kid is banned from her high school soccer team, it was totally worth it.

A repeal of Disney’s self-government status in Florida could leave local taxpayers with more than $1 billion in bond debt, according to tax officials and legislators.

The Florida House of Representatives on Thursday passed a bill that would dissolve Disney’s special improvement district, escalating Gov. Ron DeSantis’ attack on the company over its opposition to Florida’s Parental Rights in Education bill, dubbed by critics the “Don’t Say Gay” bill.

If the special district is dissolved, Orange and Osceola counties would have to provide the local services currently provided by Reedy Creek. And, the $105 million in revenue would disappear, meaning county and local taxpayers would be on the hook for part or all of the added costs.

“If you dissolved Reedy Creek, that $105 million in revenue literally goes away, it doesn’t get transferred,” Randolph said.

The reason: Reedy Creek is what’s known as an “independent tax district” meaning the tax revenues it generates are in addition to its local tax obligations, rather than a replacement of them. If the district is eliminated, the tax payments to Orange and Osceola counties would not increase, Randolph said.

But legislators and tax experts warn the bill creates an even larger potential problem for taxpayers in the form of bonds totaling more than $1 billion.

Reedy Creek has bond liabilities of between $1 billion and $1.7 billion, according to the district’s financial filings. Under Florida statute, if Reedy Creek is dissolved, those liabilities are transferred to the local governments — either Bay Lake or Lake Buena Vista, or more likely, Orange and Osceola counties.

Florida taxpayers could face a $1 billion Disney debt bomb if its special district status is revoked

The Florida legislature on Thursday cleared a bill that would dissolve Disney's special improvement district, effective June 2023.

www.cnbc.com

I don't see the problem.

1. If Disney, through this "Reedy Creek" has been providing and paying for "local services" and those services are now being provided by the county(ies), then no problem. Charge Disney for the services they use. They'll STILL be paying. They won't suddenly NOT be paying. So the $105 million in revenue won't go away. There's no such thing as a free lunch.

2. It shouldn't be hard to raise taxes, but make exceptions for everyone...except Disney. That should take care of the bond issue.

These scare tactics won't work.

 

[MTAtech]

Well this seems well thought out. The best part of basing your governance entirely on culture war is that it never, ever matters how badly you mess up. You could set the entire state on fire, and so long as a transexual kid is banned from her high school soccer team, it was totally worth it.

A repeal of Disney’s self-government status in Florida could leave local taxpayers with more than $1 billion in bond debt, according to tax officials and legislators.

The Florida House of Representatives on Thursday passed a bill that would dissolve Disney’s special improvement district, escalating Gov. Ron DeSantis’ attack on the company over its opposition to Florida’s Parental Rights in Education bill, dubbed by critics the “Don’t Say Gay” bill.

If the special district is dissolved, Orange and Osceola counties would have to provide the local services currently provided by Reedy Creek. And, the $105 million in revenue would disappear, meaning county and local taxpayers would be on the hook for part or all of the added costs.

“If you dissolved Reedy Creek, that $105 million in revenue literally goes away, it doesn’t get transferred,” Randolph said.

The reason: Reedy Creek is what’s known as an “independent tax district” meaning the tax revenues it generates are in addition to its local tax obligations, rather than a replacement of them. If the district is eliminated, the tax payments to Orange and Osceola counties would not increase, Randolph said.

But legislators and tax experts warn the bill creates an even larger potential problem for taxpayers in the form of bonds totaling more than $1 billion.

Reedy Creek has bond liabilities of between $1 billion and $1.7 billion, according to the district’s financial filings. Under Florida statute, if Reedy Creek is dissolved, those liabilities are transferred to the local governments — either Bay Lake or Lake Buena Vista, or more likely, Orange and Osceola counties.

Florida taxpayers could face a $1 billion Disney debt bomb if its special district status is revoked

The Florida legislature on Thursday cleared a bill that would dissolve Disney's special improvement district, effective June 2023.

www.cnbc.com

Not included is how much of the local economy dependents upon Disney employment and employment by suppliers of Disney. Then, there is the local hotel and restaurant business that is dependent upon Disney patrons.

 

[lemmiwinx]

^^^^^ That is why DeSantis is doing what he's doing. The faithful don't care so long as he owns the liberals. The OP tells you the move transfers at least a $billion from Disney's balance sheet to the taxpayers, plus creates a more than $100 million/year shortfall for the local governments.

Reminds me of one of my dad's favorite sayings - "Don't cut your nose off to spite your face." The GOP in Florida are taking a meat cleaver to their own faces. Nice job morons!

Don't forget Disney is a California company who dazzled central Florida rubes in the 1960s with their Cinderella theme park. Now the rubes are saying why shouldn't they pay their fair share of taxes.

 

[mike2810]

The bond debt that transfers to the counties?

That was reported in one of the news stories. The bond debt would go to the Counties.

Seems that some tax experts do not agree with the Bill's sponsor on what could happen.

- "If the special district is dissolved, Orange and Osceola counties would have to provide the local services currently provided by Reedy Creek. And, the $105 million in revenue would disappear, meaning county and local taxpayers would be on the hook for part or all of the added costs."

- "Reedy Creek has bond liabilities of between $1 billion and $1.7 billion, according to the district’s financial filings. Under Florida statute, if Reedy Creek is dissolved, those liabilities are transferred to the local governments — either Bay Lake or Lake Buena Vista, or more likely, Orange and Osceola counties"

Florida taxpayers could face a $1 billion Disney debt bomb if its special district status is revoked

The Florida legislature on Thursday cleared a bill that would dissolve Disney's special improvement district, effective June 2023.

www.cnbc.com

 

[ClaraD]

I don't see the problem.

1. If Disney, through this "Reedy Creek" has been providing and paying for "local services" and those services are now being provided by the county(ies), then no problem. Charge Disney for the services they use. They'll STILL be paying. They won't suddenly NOT be paying. So the $105 million in revenue won't go away. There's no such thing as a free lunch.

2. It shouldn't be hard to raise taxes, but make exceptions for everyone...except Disney. That should take care of the bond issue.

These scare tactics won't work.

It's 2 billion not just a little bit and you cannot tax one group different than another for the exact same services.
Disney employs 60,000 Floridians. If DeSantis gets too big for his britches they are welcome to come to a variety of other states with all those jobs

 

[Mr Person]

That would be hilarious. And deserved.

It's be Karma begging for a chance to be real.

 

[Mycroft]

It's 2 billion not just a little bit and you cannot tax one group different than another for the exact same services.

Who says you can't?

Disney employs 60,000 Floridians. If DeSantis gets too big for his britches they are welcome to come to a variety of other states with all those jobs

Disney has always had the option to move to a different state. Fine. If they think it's worth it to their bottom line, they will move. Do you seriously think they care about workers? LOL!!

But it's doubtful shutting down in Florida and starting all over in some other state is worth it to their bottom line.

 

[MTAtech]

What does every giant corporation in America learn from this? Stay out of the Republicans' line of fire, and they'll happily let you keep exploiting your employees and customers forever, just as they've done for the last 50 years. But don't you dare cross them, whether you think you're doing it in defense of your employees, or democratic values, or what's morally right, or anything else. Because if you do, they'll use every weapon at their disposal to destroy you.

And what have corporations throughout history most often done when faced with this kind of choice? They accommodate to the new realities. Ask II.G. Farben.

 

[Plasmaball]

That would be hilarious. And deserved.

It's be Karma begging for a chance to be real.

Karma for who

 

[Rexedgar]

DeSantis is up for election this November and the convention wisdom has him running for the WH in 2024. Why would he risk torpedoing his chances by taking on a battle he doesn’t think he can win? Is it possible Ron has looked a few moves ahead or is this just an arrogant move taken without thinking this through? I don’t think he is dumb. The measure passed bothe chambers in short order. IIRC, DeSantis won the governor‘s mansion by less than 35k votes. Smart or reckless move?

 

[Helix]

He's having an extremist contest with the Texas governor for the 2024 nomination.

 

[ElChupacabra]

Disney went woke so now they're going broke.

They're not going to broke as a result of this, but the counties that Disney World now have a big financial issue to deal with.

Enough tax breaks for mega companies already. Let them pay tribute the tax man like everyone else.

Sure, I have no problem with that. The thing is many states do this to lure companies to their states.

 

[ElChupacabra]

They're not getting any money from me on their plus channels if that means anything. Happy to see Chris Wallace's startup pay channel CNN+ has gone belly up.

Financially it doesn't, unless you get thousands of others to follow suit.

 

[CaughtInThe]

 

[JasperL]

Don't forget Disney is a California company who dazzled central Florida rubes in the 1960s with their Cinderella theme park. Now the rubes are saying why shouldn't they pay their fair share of taxes.

There are about 1600 districts like Disney's in Florida. The rubes are too ignorant and stupid to read a simple article and find out that revoking the Disney special district will raise THEIR taxes, and force the rubes and others to assume a $billion in debt, and so relieve that debt from Disney.

 

[Hamish Howl]

They can directly tax the property with a specialty tax.

So you don't actually have much use for the US Constitution.

 

[lemmiwinx]

Financially it doesn't, unless you get thousands of others to follow suit.

Who's going to pay for CNN propaganda when they can get it for free? At least we don't have to put up with Chris Wallace any more. That's a good thing.

 

[ElChupacabra]

Wokeism is treating people who can't decide what sex they are the same as normal people. It's too creepy for me to buy into that lifestyle sad to say.

I always find this an interesting term considering that throughout history we've had "normal people" do some pretty abnormal things.

 

[Hamish Howl]

DeSantis is up for election this November and the convention wisdom has him running for the WH in 2024. Why would he risk torpedoing his chances by taking on a battle he doesn’t think he can win? Is it possible Ron has looked a few moves ahead or is this just an arrogant move taken without thinking this through? I don’t think he is dumb. The measure passed bothe chambers in short order. IIRC, DeSantis won the governor‘s mansion by less than 35k votes. Smart or reckless move?

He's a populist thug. He is in fact dumb.

 

[Rawley]

From what I can gather this is a case of passing a Bill without understanding the ramifications.

If it goes into law and the people of Florida gets saddled with a bad law. They should remember come election time.

What makes you think they didn't understand the ramifications?