Attorneys for Gov. Ron DeSantis and other state officials have asked a Miami-Dade court to dismiss Orlando-area residents’ lawsuit challenging a state law that dissolves Walt Disney World’s special services district.
Attorneys for the governor, secretary of state and the Department of Revenue sought the dismissal of the complaint filed on behalf of Michael Foronda and other taxpayers, who argue that the dissolution of the Reedy Creek Improvement District would raise their tax burdens.
The defendants’ motion for dismissal, which was filed Aug. 19, argues that the plaintiffs have no right to stop state officials from phasing out agencies created by state law.
“Plaintiffs’ premature, scattershot complaint … challenges the legality of SB 4-C, a facially neutral general law that uniformly dissolves certain pre-1968 independent special districts effective June 1, 2023, based solely on speculative injuries that are completely disconnected from any cause of action.”
Miami-Dade County is not the right venue for the lawsuit, the motion states, and it should at a minimum transferred to Leon County, the location of Florida’s capital city, the motion states.
The plaintiffs’ attorney, William Sanchez, told the Florida Record that his clients have agreed to change the venue to Leon County. The plaintiffs’ arguments for setting aside Senate Bill 4-C are very straightforward, Sanchez said in an email.
“Given the state of Florida’s Taxpayer Bill of Rights statute, we feel we are on very firm legal footing,” he said. “If the Reedy Creek special district is in fact dissolved next April 2023, then a legal entity, private or public, must become responsible for the Reedy Creek tax burden.”
It remains unclear who will be solely responsible for the special district’s debts, according to Sanchez.
“They currently carry bond debt between $1 billion and $2 billion,” he said. “That must be resolved. In the meantime, our clients, the Orlando homeowners and business owners, have a valid fear that their taxes will increase considerably if another entity does not assume the tax burden.”
The underlying legal complaint also contends that Florida officials intended to punish Disney by phasing out the tax district due to Disney’s disagreement with recently passed House Bill 1557, the so-called “Don’t Say Gay” bill, which restricts discussions of gender and sexuality issues in public schools.
Taking away Disney’s special district will also add more regulatory burdens in the Orlando area related to building codes, according to the complaint, and this may lead to local tax increases.