Congress has cut federal funding for public media — a $3.4 million loss for LAist. We count on readers like you to protect our nonprofit newsroom. Become a monthly member and sustain local journalism.
This is an archival story that predates current editorial management.
This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.
Anaheim Faces Off Against Disneyland Over 'Gate Tax'
This deal would be an extension of a previous deal (Photo by Lori Bucci via the LAist Featured Photos pool on Flickr)
()
The City of Anaheim will hold a public hearing today about a proposal from Disney: Disney will invest $1 billion into their parks and the surrounding area if Anaheim agrees to not to give them any new taxes for the next 30 years.Since 1996, Disney has been exempt from paying a "gate tax," or a tax on their ticket sales. When that deal was made, it was to be for 20 years. So, with the end of that tax coming up in June of 2016, Disney is looking to renew the exemption, KPCC reports.
Disney is a huge draw to Anaheim, bringing in 25.4 million guests annually and providing Anaheim with $148 million in property and business taxes and sales. That's not to mention the 28,000 people who are employed by Disney, according to Reuters.
If Anaheim agrees to continue the exemption, Disney says it would do its part by investing $1 billion into their parks and the surrounding area. This money would be used in part to expand both Disneyland and California Adventure. Given that Disney now has the rights to Lucasfilms, Pixar and Marvel Entertainment, Inc., that could mean some cool, new superhero or Star Wars attractions. They also pledged to build a new parking lot with 5,000 spaces, plus make improvements to streets around the parks that would ease traffic. This would all begin in 2017 and be done by 2024.
Disney also said that they'd like to extend the deal another 15 years under the condition that they would invest another $500 million into the parks.
Support for LAist comes from
While three city council members are on board with Disney's proposal, Anaheim Mayor Tom Tait disagrees. Tait said he's opposed to tax breaks and corporate subsidies. He said that while he's not looking to slap Disney with a gate tax right now, he thinks the additional revenue could be useful in the future when hiring more police officers or building new city amenities—or if the City falls upon hard times. The City also must come up with $500 million in pension obligations, so a future gate tax could be helpful.
Interestingly enough, when Disney came up with their first deal back in 1996, they wanted it to last forever. It was Tait, then a member of city council, who said he convinced the council to settle on just 20 years, according to the OC Register.
Disney officials said that a gate tax would hurt park attendance, how much guests spend at the park and would negatively impact how much the company would be able to invest in the parks. Disney last raised their prices in February.
The meeting to discuss the issue will occur today at 5:30 p.m., according to City News Service. Disney's other theme parks in other cities do not pay gate taxes.
Update, July 8: Anaheim has approved the 30-year tax exemption for Disneyland, KPCC reports.
As Editor-in-Chief of our newsroom, I’m extremely proud of the work our top-notch journalists are doing here at LAist. We’re doing more hard-hitting watchdog journalism than ever before — powerful reporting on the economy, elections, climate and the homelessness crisis that is making a difference in your lives. At the same time, it’s never been more difficult to maintain a paywall-free, independent news source that informs, inspires, and engages everyone.
Simply put, we cannot do this essential work without your help. Federal funding for public media has been clawed back by Congress and that means LAist has lost $3.4 million in federal funding over the next two years. So we’re asking for your help. LAist has been there for you and we’re asking you to be here for us.
We rely on donations from readers like you to stay independent, which keeps our nonprofit newsroom strong and accountable to you.
No matter where you stand on the political spectrum, press freedom is at the core of keeping our nation free and fair. And as the landscape of free press changes, LAist will remain a voice you know and trust, but the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news from our community.
Please take action today to support your trusted source for local news with a donation that makes sense for your budget.
Thank you for your generous support and believing in independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
With less to prove than LA, the city is becoming a center of impressive culinary creativity. -
Nearly 470 sections of guardrailing were stolen in the last fiscal year in L.A. and Ventura counties.
-
Monarch butterflies are on a path to extinction, but there is a way to support them — and maybe see them in your own yard — by planting milkweed.
-
With California voters facing a decision on redistricting this November, Surf City is poised to join the brewing battle over Congressional voting districts.
-
The drug dealer, the last of five defendants to plead guilty to federal charges linked to the 'Friends' actor’s death, will face a maximum sentence of 65 years in prison.
-
The weather’s been a little different lately, with humidity, isolated rain and wind gusts throughout much of Southern California. What’s causing the late-summer bout of gray?
Best of LAist