{"id":5259,"date":"2025-10-15T03:29:45","date_gmt":"2025-10-15T03:29:45","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/5259\/"},"modified":"2025-10-15T03:29:45","modified_gmt":"2025-10-15T03:29:45","slug":"anaheim-officials-delay-disneyland-gate-tax-discussion","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/5259\/","title":{"rendered":"Anaheim Officials Delay Disneyland Gate Tax Discussion"},"content":{"rendered":"

Anaheim officials \u2013 a majority of whom had their campaigns heavily backed by Disney<\/a> \u2013 will not discuss placing a gate tax on the Disneyland theme park and other large entertainment venues tonight, instead kicking the debate to a later date.<\/p>\n

It\u2019s a proposed tax that city officials have long resisted even in the wake of a corruption scandal in which federal agents and independent investigators concluded that Disneyland Resort interests hold outsized influence on policymaking at city hall.<\/p>\n

But after grappling to patch a $64 million budget gap<\/a> with one time spending and bond revenue earlier this year, Anaheim City Councilwoman Natalie Rubalcava called on her colleagues this month to consider such a tax to grow the city\u2019s finances.<\/p>\n

[Read: Anaheim Might Ask Voters to Consider a Disneyland Gate Tax<\/a>]<\/p>\n

That long awaited debate was expected to take place tonight at the 5 p.m. city council meeting<\/a> until Rubalcava reached out to city staff asking the proposal be kicked.<\/p>\n

\u201cI would like to work with staff to gather additional information and data to ensure all policymakers have the comprehensive details necessary to make a thoughtful, well-informed decision on this important issue,\u201d she wrote in a Friday afternoon email<\/a> to the city clerk and city attorney.<\/p>\n

\"\"Anaheim councilwoman Natalie Rubalcava on Jan. 23, 2024. Credit: JULIE LEOPO, Voice of OC<\/p>\n

The delay comes amid a seemingly shifting dynamic between city officials and Disneyland resort interests as elected leaders look to lean more on the entertainment company and surrounding businesses to boost Anaheim\u2019s affordable housing stock.<\/p>\n

[Read: Anaheim Leans on Disneyland Resort Interests to Boost Affordable Housing<\/a>]<\/p>\n

Rubalcava, whose 2022 campaign was heavily backed by Disney<\/a> and other resort interests, did not respond to a request for comment Monday.<\/p>\n

In the email to city staff, the proposed tax would help resolve a \u201c$60 million budget deficit,\u201d help fund a new police facility and senior center and pay for deferred maintenance and capital needs.<\/p>\n

In a post on Instagram, Rubalcava said the proposed entertainment tax on admission and parking will come before the city council in October and said the delay will allow her colleagues to have a more comprehensive debate on the city\u2019s finances.<\/p>\n

It\u2019s been a couple years since the last time officials took up the debate<\/a>.<\/p>\n

In 2022, former City Councilman Jose Moreno pushed for a 2% gate tax on venues like Disneyland and the Honda Center<\/a> \u2013 that was expected to generate between $55 to $82 million annually in revenue.<\/p>\n

Marisol Ramirez, co-interim executive director of Orange County Communities Organized for Responsible Development (OCCORD), said the last time the proposal came before the city council, Disney representatives showed up in numbers to oppose it.<\/p>\n

\u201cOur council chambers were filled with Disney executives that were paid to cover seating and public speaking time, ready and prepared to lobby against this tax and I presume that will happen when the item comes in October,\u201d she said in a Monday phone interview.<\/p>\n

\u201cBut I also hope that we will have a council that\u2019s ready to ask the right questions and to allow the voters to decide.\u201d<\/p>\n

Ramirez, who worked as a senior policy advisor for Moreno, said such a tax is long overdue in a city home to several entertainment venues and would help residents.<\/p>\n

\u201cThe revenue generated from a gate tax could be allocated into housing,\u201d she said. \u201cEvery time we review our budget, there\u2019s always a continuous cut on community services, because our overall budget is exhausted by fire and police.\u201d<\/p>\n

Ramirez said the postponement will allow time for organizations like OCCORD to speak with residents and officials about the importance of a gate tax.<\/p>\n

The Walt Disney Co. did not respond to a request for comment Monday.<\/p>\n

Historically, resort interests have protested moves to institute a gate tax, saying the increased ticket prices will drive customers away.\u00a0<\/p>\n

Meanwhile, Disneyland has steadily increased ticket prices.<\/p>\n

Leaning on Resort Interests For Housing<\/p>\n

\"\"Housing in Anaheim, Calif. Credit: FASHION CASTILLO, Voice of OC<\/p>\n

Rubalcava said the gate tax postponement allows city officials to focus Tuesday on a discussion of using tourism tax dollars to support the city\u2019s newly minted housing trust fund \u2013 an idea she pushed for last year following a scathing state audit.<\/p>\n

\u201cDirecting (Anaheim Tourism Improvement District) funding toward affordable housing would be a significant milestone, not only for the trust fund itself but also for hotel and other Anaheim Resort area workers who deserve the opportunity to live in the community they serve,\u201d she wrote in an Instagram post<\/a>.<\/p>\n

In a report last year, California auditors concluded that Visit Anaheim \u2013 the city\u2019s controversial tourism bureau \u2013 improperly used tourism tax dollars by giving over $6 million between 2012 to 2022 to the local Chamber of Commerce<\/a>, which then used the money to lobby elected officials and support political campaigns.\u00a0<\/p>\n

[Read: Anaheim Institutes New Oversight on Tourism Bureau After Searing State Audit<\/a>]<\/p>\n

Known as Anaheim Tourism Improvement District \u2013 the tourism tax comes from an additional 2% tax<\/a> that Anaheim hoteliers placed on hotel rooms and is aimed at improving transportation in the resort area and promoting the city.<\/p>\n

According to a staff report<\/a>, Councilwoman Norma Campos Kurtz \u2013 whose 2024 council campaign received support from Disney \u2013 called for a discussion on a portion of tourism tax dollars collected to go towards housing resort area workers.<\/p>\n

If approved, 9% of the tourism tax dollars collected would go towards a first-time homeowners program to help workers put a down payment on their first home, rent assistance and towards building affordable homes for workers, according to the same report.<\/p>\n

The proposal would also create a five-person committee to decide how that money is spent and consist of a representative picked by the city manager, the biggest contributor to the improvement district and three hoteliers, including an owner of a small hotel.<\/p>\n

Kurtz did not respond to emailed questions on the issue Monday.<\/p>\n

Ramirez said workforce housing is necessary in a town like Anaheim.<\/p>\n

\u201cWe need to be able to have security for people that live in the city and work in the city to be able to remain in the city,\u201d she said.<\/p>\n

\u201cWorkers need to be able to have access to housing, but we also need to ensure we remain pushing for other affordable housing options for families that are in most need.\u201d<\/p>\n

Hosam Elattar is a Voice of OC reporter. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.<\/p>\n

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