A proposal to ask voters to impose a 2% gate tax on Disneyland and the Honda Middle failed Tuesday to get sufficient votes from the Anaheim Metropolis Council to achieve a spot on the November poll.
After greater than an hour of public debate, the proposed gate tax failed, with not one of the 5 different council members supporting the measure proposed by Councilman Jose Moreno. The council often has seven members, however Mayor Harry Sidhu stepped down in Could after being accused of bribery, fraud, obstruction of justice and witness tampering.
A lot of the greater than two dozen residents who spoke voiced help for the gate tax, saying the additional income is required for metropolis companies. The controversy turned so boisterous that Mayor Professional Tem Trevor O’Neil needed to name a five-minute recess to quell the shouts from supporters of the gate tax.
Had the measure been placed on the poll and accepted by a majority of voters, the gate tax would have generated $55 million to $82 million a yr to be deposited within the metropolis common fund account, in line with a metropolis report.
The proposal was pushed by Moreno, who stated he hoped the gate tax cash would bolster a metropolis funds that he stated has been stretched skinny. He instructed Tuesday evening that the funds could possibly be used to pay for a metropolis pool, extra lighting for parks and help code enforcement applications and senior companies.
Moreno argued that Disneyland and Anaheim Geese elevate their ticket costs commonly, however the metropolis doesn’t profit from these will increase. Moreno, who’s serving his final yr on the council, has been a vocal critic of tax breaks for Disneyland.
“Disney goes to lift their costs. We’re simply saying, ‘Shouldn’t the voters resolve on elevating it a bit for the town,’” he stated.
O’Neil stated he fearful the gate tax might discourage Anaheim vacationers who already pay a 15% lodge occupancy tax, one of many highest within the state.
“This will enhance the already excessive tax burden and negatively affect tourism for our metropolis,” O’Neil stated.
Councilman Avelino Valencia stated the gate tax is likely to be charged in opposition to nonprofits that maintain fundraising occasions at giant metropolis venues. Moreno stated he was open to amending the measure to exempt charitable organizations.
A spokesperson for Disneyland Resort declined to touch upon the proposal. A consultant for the Honda Middle, dwelling of the Anaheim Geese, didn’t return calls in search of a remark.
A day by day ticket to Disneyland ranges from $104 to $164, relying on the day of the week. A 2% gate tax would have added $2.08 to $3.28 per ticket.
Moreno pushed for the gate tax to generate extra income, however the metropolis’s main income sources — gross sales taxes and occupancy taxes charged on lodge friends — have rebounded dramatically for the reason that pandemic struck in 2020 and compelled the closure of Disneyland Resort for greater than a yr and pushed lodge occupancy to near-record low ranges.
Town is projected to gather $167 million in lodge occupancy taxes within the present fiscal yr, surpassing the earlier document excessive of $163 million in 2018-19, in line with metropolis funds data. Ten of the town’s largest motels, together with three Disneyland Resort motels, generate about 50% of all the town’s lodge occupancy revenues.