EXPLAINER: Why are Disney and DeSantis feuding in Florida?

TALLAHASSEE, Fla. (AP) — Florida Gov. Ron DeSantis has signed into law a bill to dissolve a private government controlled by Disney that provides municipal-like services for its 27,000 acres (nearly 11,000 hectares) in the Sunshine State.

The new law is largely seen as retribution for Disney's criticism of a new state law that critics have dubbed “Don't Say Gay,” which bars instruction on sexual orientation and gender identity in kindergarten through third grade.

The entertainment giant has not commented publicly on the proposal to dissolve its government, which has been in operation for 55 years.

WHAT DOES THE LAW DO?

The bill, which the Legislature passed on Thursday and DeSantis signed into law on Friday, would eliminate the Reedy Creek Improvement District, as the Disney government is known, as well as a handful of other similar districts by June 2023.

The measure does allow for the districts to be reestablished, leaving an avenue for Disney and lawmakers to renegotiate their deal between now and June 2023.

“By doing it this early, we have until next June or July to this put together, so we’re actually giving ourselves more time to be thoughtful,” said Republican Senate President Wilton Simpson. “I don’t know how the end will come, but I know that this is a very worthy process that we’re taking and I think whatever comes out of it will be better than what we have today.”

WHAT HAPPENS NEXT?

Although details are far from clear, the proposal could have huge tax implications for Disney. Democratic state lawmakers who oppose the bill also have warned that it could result in homeowners getting hit with big tax bills if they have to absorb costs the company used to pay.

Orange County Mayor Jerry Demings, whose county is partially home to Disney World, said it would be...