Florida Gov. On Friday, Ron DeSantis signed into law a measure revoking the Walt Disney Company’sJustification for special district status within the state days after the legislation was first introducedTomorrow is Tuesday.

This bill would dissolve the Reedy Creek Improvement District. It passed both the state Senate and the House of Representatives with votes of 23-16 on Wednesday.

Disney has so far declined to comment about the legislation. However, the dispute will likely end in court.

Over the past five decades, Disney has made it possible to add to its resort areas, such as new hotels or theme parks. This is without any interference from nearby counties. DeSantis’ signing of the bill will make this change possible in June 2023.

DeSantis, widely considered a candidate for the GOP nomination in 2024, is embroiled in a public and bitter feud with Disney over last month’s denial of Florida’s HB1557 law. Although the bill’s supporters deny that it is an act of retaliation against Disney, some critics view it as revenge for publicly arguing with the governor.

Reedy Creek was created in 1967 by the Florida legislature so Disney could develop the infrastructure for Walt Disney World at no cost to Florida taxpayers. Disney built and maintains more than 130 miles and 67 miles respectively of roads and waterways, as well as services like water, utilities, fire protection and sewage.

Experts and lawmakers say that eliminating the district may have unexpected consequences for taxpayers. Disney can levy an additional tax to fund municipal services. This is something other counties are unable to do. This tax amounts to $105million per annum. Disney also provides Reedy Creek with additional revenue in the amount of $60 million to help pay off its bond debt.

The Sunsetting Reedy Creek decision means that the local counties can begin to pay for these services even though they do not have a special status. The bill for emergency services and potholes will be borne by the tax payers.

Reedy Creek would have its debts absorbed by other counties. The loss in revenue for the district has been around $5 million to $10 million each yearIts financial reports show that it has. Disney’s ability to subvention its own operations via revenue from the theme parks means that this debt has little impact on its bottom lines.

According to legislators, around $1 billion in debt on the balance sheet that taxpayers would become responsible for should the special district get absorbed, leading to higher taxes.

These budgets will need to be saved. The state law forbids counties to raise sales taxes and impact fees in order to pay costs. They must also tax every area equally. They will therefore apply the law to all.

Scott Randolph from Orange County is the tax collector. He said it’s likely that property taxes will be increased by 20%-25% to make up for the gap.