The Florida Senate on Tuesday approved a bill that will revoke Disney's self-governing status given to the company 50 years ago. According to Fox News, the Republican-controlled chamber passed the said bill in a 23-16 vote.

The bill is known to remove the status granted to Disney to self-govern its large property near Orlando. The legislation will eliminate the status of Disney by June 2023, per New York Post.

The outlet noted that the self-governing status was granted to Disney when the Reedy Creek Improvement District was created in 1967.

The said district was made to support and administer various aspects of economic development and tourism within district boundaries.

Under the agreement, Disney was made responsible for overseeing environmental protection and public services. The company was also given the responsibility to operate and maintain its public roads.

It can be recalled that the entertainment giant proposed building a recreation-oriented development on 25,000 acres of property in a remote area of Central Florida's Orange and Osceola Counties.

According to Fox News, the counties cannot bring the project to life during that time; that is why the state legislature established the Ready Creek Improvement Act.

READ NEXT: CEO Of Assuras Tyler King Is On a Mission to Fix the Criminal Justice System

Implications of the Abolishment of Disney's Self-Governing Status

Under the Reedy Creek District Act, Disney is entitled to finance the services the district provides. Normally, these expenses are known to be paid by local municipalities, according to Los Angeles Times.

In the company's case, Disney automatically charges itself with property taxes to pay for the services. Disney also pays the Orange County Sheriff's Office for law enforcement.

However, these financial woes will be shouldered by the local municipalities and taxpayers if the Ready Creek District Act will be abolished.

Experts also claimed that the district's debt will also be paid by taxpayers and local municipalities.

According to Reedy Creek's annual financial reports, the district's long-term debt amounted to around $977 million as of September.

Meanwhile, State Senator Stewart in a statement claimed that removing the district could result in the transfer of Disney's $2 billion debt to the taxpayers. However, Representative Fine speculated to Insider that taxes could go down if a layer of a government will be eliminated, per Los Angeles Times.

Florida Governor Ron DeSantis and Disney

The passing of the bill came a day after Governor Ron DeSantis announced that the state lawmakers considered removing the self-governing status of Disney.

DeSantis argued that the company has "alienated a lot of people" when the company opposed Florida's "Don't Say Gay" bill.

It can be recalled that DeSantis and Disney have been in an argument after the amusement park operator condemned the Parentals Rights in Education Law, which restricts the discussion about sexual orientation and gender identity in Florida classrooms.

"Florida's HB 1557, also known as the 'Don't Say Gay' bill, should never have passed and should never have been signed into law," Disney said in a statement, adding that they continue to stand up for the rights and security of the LGBTQ+ members of the Disney family and across the country.

READ NEXT: Arizona Tunnel Fire Chars Over 19K Acres of Land; Prompts Evacuation for People, Animals

This article is owned by Latin Post.

Written By: Joshua Summers

WATCH: Florida Senate Passes Bill to Eliminate Disney Park's Land as a Special Tax District - From CNBC Television