Disney requests Anaheim to end tax breaks

Disney requests Anaheim to end tax breaks

Disney’s latest request for the City Council to end tax breaks have been granted. The tax breaks were set in place by the City of Anaheim to encourage Disney to continue to build, and investing in expansions at Disneyland and Disneyland California Adventure. This request would be the termination of two tax breaks for Disneyland.

One of the tax breaks prevents the city from imposing an entertainment tax if Disney invests $1 billion in the resort by 2024. Disney will meet this obligation with the addition of the new theme park “Star Wars Land.”

The other incentive that was available for Disney was a refund on hotel taxes worth $267 million with the building of luxury hotels by Disney. A project that currently on hold.

The request came from Disneyland Resort President; Josh D’Amaro stated in a letter to city officials that,

“Certain policies that were adopted to enhance the Anaheim Resort District and benefit the city… have instead created an adversarial climate where there should be cooperation and goodwill.”

Requesting an end to the tax incentives could be a play by Disney who is looking at a measure that is on the November ballot. The proposal would require hospitality businesses that accept a city tax subsidy to pay a minimum of $15 an hour, with a $1 hourly increase each January through 2022.

If Disney is not receiving these tax benefits from the city, then the measure would not apply to the Entertainment giant and the 30,000 employees.

Disney has reached wage agreements with four unions and stated the request to end tax incentives with the city is unrelated.