Why is Florida Gov. Ron DeSantis being sued by taxpayers? Exploring the repealing of Walt Disney World’s special district

A group of Floridians has filed a lawsuit against Governor Ron DeSantis and other officials for repealing a special tax district that has allowed Walt Disney World to self-govern its operations since it was established 55 years ago.

According to three residents in a federal lawsuit filed on Tuesday, DeSantis violated taxpayer rights when he signed legislation removing Disney's self-governing status.

The 11-page complaint was filed by Michael Foronda, Edward Foronda, and Vivian Gorsky, who all live near the Walt Disney World theme park and resort. The residents claimed that the state's actions would burden them and other taxpayers with Disney's bond debt, estimated to be more than $1 billion.

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Ron DeSantis' office hasn't responded to the lawsuit

Nearly 55 years ago, Florida passed legislation establishing the Reedy Creek Improvement District, effectively granting The Walt Disney Company governmental control over the land in and around its central Florida theme parks.

But recently, in retaliation to Disney's criticism of a new law restricting discussion of LGBTQ issues in schools, Republican legislators passed a bill dissolving that special purpose district on June 1, 2023.

The lawsuit claims that the Florida Supreme Court has historically granted taxpayers standing to challenge "threatened wrongful proceedings." It argues that under Florida law, people and entities who aren't technically contract parties can sue to enforce them if a breach causes them harm.

The complaint also targets Florida lawmakers for "threatening to take thousands of jobs" from the state in retaliation for protected speech. It claims Florida is infringing on Disney's constitutional rights.

Disney has not responded to DeSantis' proposal to repeal the district, which could take effect next year. However, last month, Reedy Creek stated to investors that it hinted at a legal challenge, citing a provision in the district's creation in 1967 that says it can't be dissolved until bonds are paid off.

Ron Desantis' office did not comment on the latest lawsuit. It is currently unknown how the state will proceed should Disney file a suit. Nonetheless, a prolonged legal battle seems imminent given Florida's latest regulations.