Disney Florida fallout: Taxpayers sue DeSantis for axing company's special tax status

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The taxpayer lawsuit asked the court to find the law dismantling Reedy Creek as unconstitutional. The 11-page complaint alleges that the state violated legal obligations forbidding it from dissolving the district without resolving its outstanding debt.

Current conflict is the latest to reveal underlying tensions that have existed between Disney and religious conservatives for decades as it has embraced the LGBTQ community.

The decision to kill the Reedy Creek district, covering a 25,000-acre area that is home to Walt Disney World Resort, was widely seen as retaliation against Disney for its stance.Florida’s Senate on Wednesday voted to dissolve the Reedy Creek Improvement District, which allows Disney to function as its own government.

“The stated and undisputed reason behind the bill is to punish Disney World and subsequently Florida taxpayers,” the complaint said. “Even though the governor and certain Republican lawmakers welcome a fight with Disney on this matter, they appear to not want to follow constitutional guidelines and previous legally enforceable agreements involving over $1 billion in bond issuances.”

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