Fact check: How does new Florida law affect Disney's tax status?
A popular Facebook post says that Florida lawmakers and Gov. Ron DeSantis recently passed a new law that "erases" the Walt Disney World Resort's "tax exempt law," potentially costing the company $200 million a year. PolitiFact checks the claim.
Posted — UpdatedIt is unclear whether Florida’s actions could have financial implications for Disney that stretch beyond its Orlando-area theme parks. Still, social media users were quick to make conclusions.
The grammatically problematic statement propped up many inaccuracies about the impact of the new law, and it mischaracterized the privileges the tax district originally awarded Disney.
Disney did not respond to PolitiFact’s request for comment.
Disney already pays taxes in Florida
Under the agreement, Disney was responsible for building and maintaining municipal services like power, roads, and fire protection — which ensured that the residents of Orange and Osceola counties would not have to pay for such services.
Disney's most significant benefit from the arrangement was not financial but rather the autonomy to develop the 25,000 acres it owns in Central Florida without much of the oversight other developers typically have.
The Facebook post’s claim that Disney will now have to pay $200 million in taxes annually appears to be based on the false premise that Disney wasn’t already paying taxes.
The article noted that Roach’s Democratic colleagues and officials in Central Florida questioned his math and the claim that Disney has not paid property taxes.
Roach did not respond to our request for comment.
"There’s this perception that Reedy Creek somehow gave Disney property tax breaks," said Scott Randolph, Orange County’s tax collector. "It does not do that."
Under the new law, Disney’s deal with Florida ends June 1, 2023.
"The bill will have an indeterminate fiscal impact on residents and businesses currently served by a special district dissolved by the bill," the Senate analysis said. "Such residents and businesses may experience a change in services previously provided by the special district and related assessments and taxes imposed."
At a news conference, DeSantis rebuffed these concerns. He said he has "everything thought out," alluding to future legislation.
PolitiFact ruling
A Facebook post said DeSantis "erased Disney’s tax exempt law. Will cost Disney $200 Mil in taxes. Per year!"
DeSantis did not "erase" any tax-exempt status for Disney. That misconstrues the special taxing district status that is in the process of being removed.
We could not find evidence to substantiate the $200 million tax figure cited in the claim. The financial impact of the legislation on Disney’s tax bill remains unclear.
We rate this claim False.
Related Topics
Copyright 2024 Politifact. All rights reserved.