TALLAHASSEE, Fla. — Florida Gov. Ron DeSantis floated Disney hotel taxes and road tolls in April 2023 as his administration’s dispute with the Walt Disney Company intensified over control of the special government district surrounding Walt Disney World.
Speaking at Hillsdale College in Michigan, DeSantis said Florida could consider “taxes on the hotels” and “tolls on the roads” leading into Disney’s Central Florida resort. He also raised the possibility of developing district-owned property near Disney World.
The remarks were political threats rather than completed policy proposals. DeSantis did not announce a tax rate, identify roads that would be tolled or provide an implementation timetable. The Disney-specific hotel taxes and road tolls were never enacted.
Why the Disney Dispute Escalated
The conflict began after Disney publicly opposed Florida’s 2022 Parental Rights in Education Act. The original law restricted classroom instruction on sexual orientation and gender identity in kindergarten through third grade and required instruction in other grades to be age appropriate.
Critics called the legislation the “Don’t Say Gay” law, while DeSantis and other supporters argued that it protected parents’ authority over discussions involving young children.
After Disney opposed the legislation, DeSantis and Republican lawmakers moved to change the governing structure of the Reedy Creek Improvement District, which had provided municipal services around Walt Disney World since 1967.
The district handled roads, utilities, emergency services, land-use planning and other local-government functions. Because Disney owned most of the land, the company previously had substantial influence over the selection of its governing board.
In February 2023, DeSantis signed House Bill 9-B, renaming Reedy Creek as the Central Florida Tourism Oversight District and replacing its landowner-selected board with five members appointed by the governor and confirmed by the Florida Senate.
The legislation did not eliminate the district. It changed its governing structure and reduced several powers that Florida officials characterized as special privileges.
Disney’s Last-Minute Development Agreements
Before the new board assumed control, the outgoing Reedy Creek board approved a development agreement and restrictive covenants with Disney.
Those agreements gave Disney broad authority over future development decisions. One provision used a “royal lives” clause tied to the descendants of King Charles III to establish the agreement’s maximum duration.
The new DeSantis-appointed board argued that the agreements improperly restricted its authority. Disney maintained that they had been discussed and approved during publicly noticed meetings in accordance with Florida law.
That conflict prompted DeSantis’ comments about potentially imposing hotel taxes, adding road tolls and developing district property.
On April 17, 2023, the governor announced legislative and district action intended to invalidate the agreements.
Disney filed a federal lawsuit nine days later, alleging that DeSantis and other state officials had retaliated against the company for constitutionally protected political speech. The governor’s administration denied the allegations and argued that Florida had legitimately ended Disney’s unusual control over a local governmental body.
What Ultimately Happened
U.S. District Judge Allen Winsor dismissed Disney’s federal lawsuit on Jan. 31, 2024.
Winsor dismissed Disney’s claims against DeSantis and Florida’s commerce secretary without prejudice for lack of subject-matter jurisdiction. He dismissed the claims against the tourism-district board members on the merits for failure to state a claim.
Disney initially appealed that decision.
In March 2024, Disney and the Central Florida Tourism Oversight District settled their state-court litigation. Disney accepted that the disputed development agreements and restrictive covenants were invalid, while both sides agreed to negotiate a new development arrangement.
The district approved a new 15-year agreement in June 2024. According to the Central Florida Tourism Oversight District, the agreement contemplated up to $17 billion in Disney investment over 10 to 20 years.
Disney committed to directing at least half the value of covered construction work to Florida-based businesses and contributing at least $10 million toward attainable housing. The district agreed to provide infrastructure needed to support the resort’s expansion.
After the agreement received final approval, Disney asked the federal appeals court to dismiss its remaining appeal, ending the last major portion of the legal fight.
The targeted hotel taxes and Disney-specific road tolls discussed in 2023 were not included in the final agreement.
Related Coverage
- Disney-DeSantis Legal Fight Ended After Federal Dismissal and Development Deal
- Court Rejects Disney’s Attempt to Block the DeSantis Lawsuit
- Florida Economy Continues to Outperform Nation, but Affordability Challenges Loom
Editor’s note: This article was substantially revised on Aug. 2, 2026, to explain that the proposed hotel taxes and road tolls were not implemented and to include the final outcome of the Disney–Florida litigation.
