Anaheim leaders decline to put visitor, parking taxes to voters

Anaheim officials have tabled proposals for taxing entertainment visitors and large parking facilities as a way to generate more revenue to pay for services and bond obligations.

City leaders had two ordinances in front of them Tuesday — one would have levied a 3% tax on visitors to the entertainment destinations and another would introduce a 10% tax on parking facilities with a capacity to park 1,500 vehicles — and they had to decide whether to place the taxes on the ballot in 2026.

Despite the majority of public comment in favor of placing the taxes on the ballot in 2026, the City Council, except Councilmember Natalie Rubalcava, was hesitant to levy more taxes on visitors to the theme parks.

“ I'd rather look at us tightening our belts than doing something that to me is just a bit shortsighted and not in the city's best interest,” Mayor Ashleigh Aitken said.

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If voters approved the proposals on the 2026 ballot, the city would have stood to gain between $89 million to $134 million each year just from the gate tax and around $25 million from the parking tax. That money would have gone toward the city’s general fund paying for public services.

The city’s decision comes after LAist first reported on a legal claim filed against the city alleging millions in taxpayer dollars wasted.

LAist has reached out to the Walt Disney Co., which would have been most affected by the tax proposals, for comment.

How we got here

Rubalcava said she considered a sales tax or utility tax before proposing the gate tax. She said a sales or utility tax would have increased prices of goods and services for Anaheim residents while the proposed gate tax would work “ really to leverage some of our local economy that's really driving development here.”

 "We chose for this to be a tax on the consumer, so it would not have a direct negative impact on Disney or other large events and tourism attractions here in our city,” Rubalcava said during Tuesday’s meeting.

The pushback on the tax 

Councilmember Natalie Meeks said Anaheim already is heavily reliant on the city’s resort area to fund its general fund, much of which is fed through a tax people who stay at the city’s hotels pay.

“ The resort not only pays its fair share, it pays for its enhanced maintenance. It pays for its enhanced police and fire service. It pays for all those things,” she said. “ They're paying their fair share, and now we're suggesting punishing them for that.”

More “heads in beds,” she said, will increase revenue generated from the hotel tax, so the city should be looking at driving people to the resorts.

Councilmember Kristen Maahs echoed similar concerns, saying the city should diversify its revenue sources.

“ I do have a concern that this may slow that development, I think we have the best park in the world and Disney’s best assets,” she said. “But the reality is that they do have other places where they could invest.”