Maria Caspani, Dawn Chmielewski

(Reuters] – Florida Governor Ron DeSantis has signed a bill to remove Walt Disney World from Florida. Disney (NYSE:) Co. of self-governing power at Orlando-area parks as a retaliation against a new law that restricts the teaching of LGBTQ topics in schools.

The Republican-controlled legislature on Thursday approved the bill, which will eliminate the special governing jurisdiction that allows the company to operate Walt Disney World Resort as its own city. The company operates four theme parks on its 25,000-acre property, as well as two water parks. It also has 175 miles of road.

DeSantis stated that Disney’s “exceptional status” was an “abnormality” at the news conference in which he signed into law the bill. “No company or individual in Florida is treated like this.”

Disney has not yet commented on the bill’s signing.

Although the impact of the changes on both the company’s financial position and that of the state are uncertain, they could change the way Disney manages its vast Central Florida operation and undermine the relationship the two companies have enjoyed for over 50 years.

Friday’s governor said that Disney will pay higher taxes due to the new law, but he didn’t elaborate.

DeSantis, a possible Republican presidential candidate in 2024, has appealed to conservative voters regarding issues like immigration and abortion.

DeSantis’ latest attack on Disney is an attempt to burnish his conservative credentials. He is showing that he is prepared to confront a California-based “woke company” that doesn’t share Florida’s values.

The LGBTQ legislation was first not opposed by Disney. This led to criticism from the LGBTQ community as well as employees. Later, the company condemned the law and announced that it would suspend all political donations to Florida while it reviews.

Critics have called the law “don’t speak gay”, because it bans children from kindergarten to third grade being taught about sexual identity and/or orientation. DeSantis supported the bill, claiming that it would allow parents to exercise more control over their child’s education.

The opponents call it an attempt to marginalize students of transgender or gay parents, and the children of those with queer parents.

Joe Biden spoke at a Seattle fundraiser on Thursday about the rivalry between Florida Republicans (Disney and Florida Republicans). Biden said that such restrictions “have nothing whatsoever to do with conservative traditional doctrine.”

“I value conservatives. It’s not conservative to decide you want to get rid of Disney because Mickey Mouse…should…not be able, you know… gay.”

Although the bill seems to attack Disney and its sprawling Orlando theme park, experts believe that the bill’s financial consequences on both the company and state are unclear.

DeSantis was quick to get the bill passed the statehouse. It did so in just three days after a special session. But it will not be effective until June 2023 to allow both parties time to adapt to the new realities.

This law disbands the Reedy Creek Improvement District. It was established in 1960 to attract Disney World to California.

The district, which has been in existence for more than 50 years, allows Disney to operate as a county government. It provides services like firefighting, power and water within Orange and Osceola Counties. To pay for the improvements, Disney is able to issue bonds that offer tax benefits.

Disney is an important contributor to the state’s political scene. In the 2020 election cycle, the company donated $4.8 million in total, including campaign funds to more than 100 individual Florida legislative members, some of whom sponsored Thursday’s legislation, state records show.

Now that the bill is law, it’s unclear whether the state or company will suffer the most.

A fact sheet marking the 50th anniversary said that the Walt Disney Resort had paid $780.3million in state and local taxes for 2021. Scott Randolph from Orange County Tax Collector said that local taxpayers will be more affected by the new legislation than Disney.