Disney Stocks Falls by 33% After Governor Ron DeSantis Revokes Special Status

Disney stocks are set to rank among the worst-performing stocks in 2022 after it went down nearly a dollar from yesterday, closing at $121.66 after it had opened at $125.50 per share.

A little over a year ago, Disney stock was at an all-time high, trading at nearly $200 per share in March 2021, according to a Daily Mail report. Disney has seen the sharpest decline with 31 percent as compared to the 30 companies that make up the Dow Jones.

Disney was followed by industry goods company 3M, being down by 25 percent, and home goods company Home Depot, down 23 percent over the last year.

Disney stocks plummeted after Florida Gov. Ron DeSantis and his fellow Republicans said they wanted to remove Disney's protections. The Republican governor of Florida said he does not "support special privileges in law just because a company is powerful."

Disney started a war with DeSantis when it openly opposed the so-called "Don't Say Gay" bill.

Disney Stripped of Self-Governing Status

The Florida House of Representatives passed a bill on Thursday that will dissolve Disney's special improvement district.

Tax officials and legislators said that repealing Disney's self-governing status in Florida could leave taxpayers with more than $1 billion in bond debt, according to a CNBC News report.

The state Senate passed the bill on Wednesday after it was first introduced on Tuesday, leaving the measure to the governor's hand for his signature.

Tax experts and legislators said that the elimination of the district could have unintended consequences for county taxpayers.

Disney effectively taxes itself to fund the government services of Reedy Creek, which spans 25,000 acres in Orange and Osceola counties. Reedy Creek includes Disney's four theme parks, two water parks, and a sports complex.

Disney also pays local property taxes on top of the $105 million the Reedy Creek district collects annually in general revenue.

Orange and Osceola counties would have to provide the local services currently provided by Reedy Creek if the special district is dissolved.

In addition to that, the $105 million revenue would disappear, which would mean county and local taxpayers would be on the hook for the added costs.

Florida state Rep. Randy Fine said that local payers would not pay more and would actually benefit from Reedy Creek's elimination.

Fine said that the tax revenue Disney pays would be passed on to local government and could more than pay for the added services.

'Don't Say Gay' Bill Feud

DeSantis wrote in a campaign fundraising email on Wednesday that if Disney wants to pick a fight, "they chose the wrong guy," according to The Guardian News report.

He added that he will not allow a "woke corporation based in California" to run the state of Florida.

Democrats, which are the minority part of the legislature in Florida, have clamored against the proposal.

The state Sen. Gary M. Farmer said that it is "the punitive, petulant political payback to a company who dared to say the emperor has no clothes."

Disney is one of Florida's biggest private employers, with more than 60,000 workers in the state.

This article is owned by Latin Post.

Written by: Mary Webber

WATCH: DeSantis vs. Disney as Florida governor strips its self-governing status - from WPLG Local 10