Anaheim City Council To Hold Hearing On Disney Tax Break Extension Request

ANAHEIM (CBSLA.com) — The Anaheim City Council is set to hold a public hearing Tuesday to consider a request for the city to ban a gate tax on two local Disney theme parks in exchange for a proposed $1 billion expansion of the resort.

Walt Disney Parks and Resorts has asked city officials to extend the long-term tax exemption on its ticket sales for another 30 years. The exemption took effect in 1996 and expires in June of next year.

The company's expansion plan would include 5,000 new parking spots and unspecified new attractions, and would fall within the resort's existing footprint and require no city funding or bond financing, according to officials.

Mayor Tom Tait, who supported the tax exemption in 1996, has since had a change of heart, citing a $500 million unfunded pension obligation.

Tait told KNX 1070 NEWSRADIO he doesn't think it makes sense to give Disney such a long exemption.

"No matter what size business, you don't really get an exemption for future taxes," said Tait. "Imagine going to the IRS, saying, 'You know what, we want to be protected from any tax increases for 45 years'."

The Disneyland and California Adventure Park resort area - which generates $147.6 million in tax revenue annually - draws more than 23 million visitors every year.

While officials say any entertainment tax would require voter approval, Tait says if the proposal is approved by the City Council, it cannot be changed by a vote of the people.

(©2015 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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