Disney and Florida reach settlement in legal battle over special tax district

Disney and Florida officials have reached a settlement in the legal dispute over the special tax district that encompasses the entertainment giant's iconic resort, putting an end to a contentious feud that began last year.

The Central Florida Tourism Oversight District board, which was established by Governor Ron DeSantis, had sued Disney over an agreement struck between the corporation and the previous board members before they were replaced. The new settlement nullifies that prior agreement, a move that has been praised by both Disney and DeSantis' office, the Daily Wire reported.

In a statement to National Review, DeSantis communications director Bryan Griffin said, "Disney conceded that the settlement makes the previous agreement 'null and void.' No corporation should be its own government. Moving forward, we stand ready to work with Disney and the District to help promote economic growth, family-friendly tourism, and accountable government in Central Florida."

Walt Disney World Resort President Jeff Vahle echoed the positive sentiment, stating that the settlement establishes a framework for future investment in the resort. This comes after Disney leaders had previously warned that the dispute with DeSantis would have a negative impact on the company's investments in the state.

"This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the State," Vahle told the Washington Post.

The clash between DeSantis and Disney began in 2022 when the entertainment company spoke out against Florida's proposed Parental Rights in Education bill, which critics labeled the "Don't Say Gay" bill for its ban on sexual orientation and gender identity lessons for young students.

In retaliation for Disney's activism, Florida Republicans targeted the Reedy Creek Improvement District, a special tax district that provided Disney with tax breaks and other benefits in the area surrounding Walt Disney World. In February 2023, DeSantis signed legislation dissolving the special district and establishing the Central Florida Tourism Oversight District board in its place.