It\u2019s an unprecedented move from a council member whose campaign was heavily backed by Disney.<\/p>\n
Rubalcava\u2019s move is also a noteworthy twist on a council where five of the seven members have had their campaigns heavily backed by Disney<\/a> and other resort businesses \u2013 the very interests who\u2019ve historically opposed talks of a gate tax.\u00a0<\/p>\n During Tuesday\u2019s meeting, Rubalcava said she wants the city to generate new revenue from tourists and \u201cnot on the backs of the people who live here.\u201d\u00a0<\/p>\n She\u2019s eying places like Disneyland, the Honda Center and the upcoming OC Vibe<\/a> through having city staff explore \u201cnew revenue generating opportunities through an entertainment tax.\u201d\u00a0<\/p>\n She also noted Anaheim is in \u201cabout $60 million in deficit.\u201d\u00a0<\/p>\n Rubalcava, a Democrat whose 2022 campaign was heavily backed by Disney<\/a> and other resort interests, said the city should get some money from the Mickey and Friends parking garage, which was paid for with bond money from the 1997 Disneyland expansion.\u00a0<\/p>\n \u201cWe are growing but our budget is not growing, unfortunately. And we cannot continue to just depend on TOT (hotel bed taxes),\u201d Rubalcava said. \u201cI think it\u2019s kind of time at this point for us as an elected body to review this.\u201d\u00a0<\/p>\n City staff said they would likely have something before the city council at the Sept. 23 meeting.\u00a0<\/p>\n Rubalcava said it\u2019s better to have the debates sooner than later because she wants to get it on the November 2026 ballot.<\/p>\n Fallout From a Corruption Scandal\u00a0<\/p>\n The gate tax proposal comes after the 2022 city hall corruption scandal, which publicly surfaced after the city tried to sell Angel Stadium to the team owner.<\/p>\n In federal court filings, FBI agents revealed disgraced former Mayor Harry Sidhu tried ramming the deal through expecting $1 million in campaign contributions.<\/p>\n Throughout the scandal, independent investigators and FBI agents<\/a> came to similar conclusions \u2013 Disneyland Resort interests held outsized influence on city policymaking.\u00a0<\/p>\n [Read: Anaheim\u2019s Own Look at City Hall Finds Disneyland Resort Businesses Improperly Steer Policymaking<\/a>]\u00a0<\/p>\n Sidhu was eventually sentenced to two months in prison<\/a> earlier this year and former Anaheim Chamber of Commerce CEO Todd Ament awaits his sentencing this November over the scandal.<\/p>\n The idea of an entertainment tax \u2013 or gate tax \u2013 has sparked considerable debate and controversy in Anaheim over the years.\u00a0<\/p>\n Former Councilman Jose Moreno \u2013 who represented the same district Rubalcava now does \u2013 tried bringing the idea<\/a> forward a couple of times during his tenure on the dais.<\/p>\n Each time it failed.\u00a0<\/p>\n In 2022, Moreno pushed for a 2% gate tax on venues like Disneyland and the Honda Center.\u00a0<\/p>\n [Read: Forced to Borrow to Meet Budget Deficits, City of Anaheim Mulls Disneyland Ticket Tax<\/a>]\u00a0<\/p>\n Much like today, the city was wrestling with multi-million dollar budget deficits as the local economy reeled from the pandemic shutdowns, which severely impacted tax revenue generated in the Disneyland Resort.\u00a0<\/p>\n At the time, city staff estimated<\/a> a 2% gate tax could bring in $55 million to $82 million in new revenue for Anaheim\u2019s general fund \u2013 the most flexible pool of money available to elected officials.\u00a0<\/p>\n In 2022, city staff said the gate tax wouldn\u2019t apply to Angel Stadium because the Major League Baseball franchise is entitled to credits against any such tax \u2013 something spelled out in the team\u2019s 1996 lease, which was controversially reinstated in 2019.\u00a0<\/p>\n [Read: CA Auditors: Anaheim Doesn\u2019t Know if Angel Stadium is Trashed<\/a>]\u00a0<\/p>\n At the time, the Disney-backed council majority \u2013 Sidhu\u2019s close allies \u2013 rejected Moreno\u2019s proposal ahead of the 2022 election.\u00a0<\/p>\n [Read: Borrowing to Meet Budget, Anaheim Passes on Disneyland Ticket Tax<\/a>]<\/p>\n In that election, two of Sidhu\u2019s allies were voted out of office.<\/p>\n No member of Sidhu\u2019s majority is left on the dais today.<\/p>\n Will Voters Get to Decide on a Gate Tax?<\/p>\n Rubalcava, Disney-backed herself, is looking to put the question before Anaheim voters next year.\u00a0<\/p>\n \u201cI hope that this council is open to allowing our residents to weigh in on this really important ballot initiative and that would have to go to a general election. So that is in November 2026.\u201d\u00a0<\/p>\n While her proposal wasn\u2019t scheduled on the agenda for Tuesday\u2019s meeting \u2013 meaning council members couldn\u2019t debate the issue \u2013 it did raise some hesitation from one of her colleagues.\u00a0<\/p>\n Councilwoman Natalie Meeks, a Republican whose own campaign was heavily backed by Disney in 2022, said city staff should look to other revenue sources to help alleviate Anaheim\u2019s budget woes.\u00a0<\/p>\n \u201cI have significant concerns on not diversifying our revenue sources,\u201d Meeks said. \u201cOur finance director has kind of said we are a one-trick pony here in visitor revenue. So are there other options that make more sense for us if we do have a long term shortfall? So those are other issues I would like staff to look at.\u201d\u00a0<\/p>\n She also said staff should examine the roughly $120 million in freed up money that\u2019s slated to come in after the city pays off the bonds from the 1997 Disneyland expansion \u2013 some of which paid for the parking garage.\u00a0<\/p>\n Anaheim is spending over $114 million of general fund money to pay down the 1997 bonds this fiscal year, according to the adopted budget<\/a>.\u00a0<\/p>\n The city has relied on hotel taxes to help boost revenue, but much of that goes to help pay down the 1997 bonds.\u00a0<\/p>\n During this year\u2019s budget process, city staff noted that hotel revenues fell 11% short<\/a> of what was expected this fiscal year.\u00a0<\/p>\n Rubalcava said much of the city\u2019s hotel taxes go to help pay down the bonds, including the Mickey and Friends parking garage that Disney leases for $1 a year and the city plans to hand over to the entertainment juggernaut once the 1997 bonds are paid off.\u00a0<\/p>\n \u201cSo that is also one of the reasons why I think having an assessment on parking would be significant,\u201d she said. \u201cI hope that our friends at these large entertainment venues will agree with us that it is conducive of them to help us generate the revenue needed to help our city move forward.\u201d\u00a0<\/p>\n Spencer Custodio is the civic editor. You can reach him at scustodio@voiceofoc.org. Follow him on Twitter @SpencerCustodio<\/a>.<\/p>\n \n\tRelated\n<\/p>\n \t![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/10\/0A4A7759.jpg\")
Anaheim councilwoman Natalie Rubalcava on Jan. 23, 2024. Credit: JULIE LEOPO, Voice of OC<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/10\/Daniel-Robbins-9470.jpg\")
Residents applaud their neighbors as they speak out against the recent FBI corruption probe in Anaheim and the Angel stadium land sale on May 24, 2022. Credit: JULIE LEOPO, Voice of OC<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/10\/Disneyland.2020.09.EDIT-3.jpg\")
The entrance to Disneyland in Anaheim on Oct. 6, 2020. Credit: JULIE LEOPO, Voice of OC<\/p>\n