A proposal to charge a 2 percent gate tax at Disneyland and sporting venues failed to get enough support from Anaheim city councilors on July 19.
The measure, proposed by Councilman Jose Moreno, would have gone to voters on the Nov. 8 ballot—but it died without the support of any of his colleagues.
“This is not something that we need,” Mayor Pro Tem Trevor O’Neil said. “We have other ways to raise the money and indeed our budget projections are very positive.”
The tax was expected to generate up to $82 million per year from ticket sales at Disneyland’s two theme parks, Anaheim Stadium, and the Honda Center, home to the Anaheim Ducks.
Dozens of residents voiced support at the meeting for the gate tax, at times disrupting the council meeting with chants of “let the people vote.” At one point, O’Neil called for a five-minute recess after public interruptions prevented him from speaking.
Moreno proposed the gate tax measure to help pay for community services, a new city pool, police and fire services, and other programs.
“I’m not sure what else to try to propose to provide resources, or at lease options for resources, to fully support our staff, to enhance our staffing efforts, to provide the services that our residents need and desire,” Moreno said.
The city council also declined to support Moreno’s campaign finance reforms last month.
“It is regrettable that in both instances, it seems that the interests of a resort as an untouchable entity, be it for campaign finance or for a modest 2-percent tax cannot get support from a majority of the council,” Moreno said.
Councilman Avelino Valencia said the tax would unfairly impact residents while inflation remains high.
“I don’t believe it’s appropriate or that I feel comfortable asking our residents to even consider paying more in taxes to enjoy a local outage at this time,” Valencia said.
Other council members expressed concerns about adding to the city’s high tax rate. Anaheim charges hotel and resort guests a 15 percent tax to stay overnight, called a Transient Occupancy Tax. This is one of the highest rates in the state, O’Neil said.
Visitors also pay a 2 percent tax for tourism improvement districts. The gate tax proposal would bring the total to 19 percent, which could deter visitors from vacationing in Anaheim, O’Neil said.
Councilman Jose Diaz said the state was already overtaxing citizens.
“We are overtaxed in California,” Diaz said. “That’s why I cannot look at this separately from the whole state of California.”
