Anaheim tourism brings in billions. Now, two proposals want city residents and employees to get a bigger cut

Anaheim is home to some of the region’s biggest draws: Disneyland, Honda Center and the Angels Stadium. And now, city leaders are poised to take a bigger slice of the income generated from these and other venues and use it to benefit residents and employees.

City leaders are set to vote on a potential gate tax at the venues in October. And, at Tuesday's City Council meeting, leaders will decide if some funds generated from the Anaheim Tourism Improvement District Fund can be used to support affordable housing.

Here’s a breakdown on the two proposals:

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The gate tax

Earlier this month, Anaheim City Councilmember Natalie Rubalcava brought up the idea of a tax on tickets and parking at the city’s entertainment destinations, including Disneyland, Angel Stadium and Honda Center. She proposed putting a measure on the ballot in 2026, allowing residents to weigh in on implementing the gate tax. That debate was set to come in front of the city council Tuesday night, but the discussion was postponed until October.

The proposal comes as the city is facing a $60 million budget shortfall. Income generated from the tax could be used toward capital projects and investments such as a new police facility or senior center, according to Rubalcava.

Rubalcava said at the last meeting she does not want Anaheim residents taxed to make up that difference. Instead, if the tax passes, it would be levied on ticket sales at these venues. Millions of people visit the entertainment destinations. Earlier this year, Disney welcomed its 1 billionth visitor.

Community leaders are also lending their support to the gate tax.

“ I would really want to see a gate tax happen for the city so that we could use some of this revenue to support housing, community services, all across the board services that we would need for the city,” said Marisol Ramirez, interim co-director of nonprofit Orange County Communities Organized for Responsible Development, known as OCCORD.

Disney did not immediately respond to a request for comment on the proposal.

Affordable housing assistance 

A second measure coming before the City Council this week would help residents and those who work within the city who struggle to keep up with the cost of housing within Anaheim’s borders.

City leaders are poised to approve a resolution that would channel 9% of the income generated by the city’s hotel tax toward the Anaheim Housing Trust Fund.

That funding would allow the city to underwrite three initiatives:

• The First-Time Homeowners Program: This would offer a down payment assistance loan for low- and moderate-income households to help buy a home within the city. The loan will be specifically for first-time homebuyers who work for facilities in the Anaheim Tourism Improvement District. The district was created in 2018 to promote and make area improvements to benefit the hotels in the Platinum Triangle and Anaheim Resort area. It’s funded through a hotel tax. 

• The Housing Stability Program: This program would provide a one-time emergency assistance payment to very low-income or low-income people to prevent displacement, eviction and homelessness. This program would also be aimed at employees who work for a facility within the Anaheim Tourism Improvement District. 

• The Build More Homes Initiative: To develop affordable rental and for-sale housing for qualified people who work at facilities within the Anaheim Tourism Improvement District.

How we got here

Ramirez, the community leader with OCCORD, said that despite the city being home to some of the top entertainment destinations in Southern California, residents have not always benefited because city leaders “ have not done the best in regards to negotiating good contracts with these venues.”

She said city leaders have previously negotiated with these business entities so the businesses — not the residents — get the benefit.

For example, former Anaheim Mayor Harry Sidhu recently served time in prison for soliciting a $1 million campaign contribution from the Angels baseball organization in exchange for passing them confidential “city specific” information while negotiating the sale of Angel Stadium. The information would have benefited the owners of the Angel baseball team instead of the city.

The majority of our jobs in the city of Anaheim are service sector jobs, "servicing a lot of these entertainment venues,” said Ramirez. “A lot of residents that work in these entertainment venues don't actually get to participate in these venues because of the costs associated.”

To her point, just last week, a judge ordered the Walt Disney Co. to pay millions in back pay to 51,000 current and former Disneyland employees. The backstory there: In 2018, Anaheim voters passed a measure that required employers who benefited from tax subsidies in the city to pay their employees above the minimum wage. Critics say that never happened. And employees filed a class action lawsuit.

Disney argued that the measure did not apply to them, but Orange County Superior Court Judge William Claster disagreed, and approved the $233 million settlement.

 ”When you see companies like this setting the standard for workers and the standard of what their labor is worth that sets a domino effect for what families are able to afford, if they can afford to stay living in their city, if they can afford the groceries, if they can afford their monthly rent,” Ramirez said. “It's a huge responsibility for local governments, for council, for Mayor to negotiate first and foremost on behalf of residents.”

How to keep tabs on the Anaheim city council

The Anaheim City Council meets on scheduled Tuesdays. Meetings start at 5 p.m.

Here’s how you can follow along:

• Attend in person: The board meets at City Hall, Council Chambers, 200 S. Anaheim Blvd., Anaheim
• Watch the live broadcast
• Here’s how to submit a comment or contact the council