A New Magic Tax: Anaheim Coucilmember Rubalvaca Proposes New Entertainment Tax that Would Effect Disneyland Resort Tickets and Parking
Other surrounding tourist destinations like Angels Stadium and Honda Center would also be impacted.
Disneyland Resort in Anaheim, CA has had a longtime agreement with the city, allowing theme park tickets to be sold tax free. Now, a city Councilmember is aiming to challenge that.
UPDATE (9/24/25): Following a request from Natalie Rubalvaca, the discussion about adding a new entertainment tax in Anaheim – which would potentially add taxes to Disneyland Resort tickets and parking – has been postponed from its originally planned September 23rd date to October 28th.
- Wrote Rubalvaca, “As a courtesy to my council colleagues, I would like to request postponing Agenda Item 13, which addresses the discussion of potentially placing a measure on the ballot for Anaheim voters' consideration. This proposed entertainment tax (admission and parking) would benefit our city's general fund as a revenue solution to address the current $60 million budget deficit, deferred facility maintenance and capital needs i.e., new police facility and senior center etc. In the interest of time, I would like to work with staff to gather additional information and data to ensure all policymakers have the comprehensive details necessary to make a thoughtful, well-informed decision on this important issue."
- You can check out what Laughing Place’s Ben Breitbart wrote about the potential for this new tax and why it’s unfair to ask Disneyland customers to pay more for Anaheim's financial shortcomings.
Original story follows.
What’s Happening:
- The OC Register is reporting that Disneyland’s current deal to offer tax-free tickets and parking to guests may be at risk.
- Anaheim Councilmember Natalie Rubalvaca proposed on Tuesday that Anaheim should explore an entertainment tax in the future.
- Currently, the city’s budget relies on tax revenue for hotel stays, which sees tens of millions of people per year as travelers from around the world explore Disneyland Resort and other nearby tourist destinations.
- In an attempt to boost Anaheim’s revenue, she stated “We cannot continue to just depend on (the city’s hotel tax), I think it’s kind of time at this point for us as a elected body to review this."
- She continued “It would have to go to our residents. I hope that this council is open to allowing our residents to weigh in on this really important ballot initiative."
- While Rubalvaca didn’t expand much on what this entertainment tax would entail past new tax fees on tickets and parking, she is looking to get the proposed initiative on the ballot for the November 2026 elections.
- Anaheim residents would then have a chance to vote on the initiative.
- Rubalvaca has asked staff to curate a plan, with the ballot measure being an expected topic of debate at the September 23rd City Council.
- Past Disneyland, Angels Stadium has a parking rebate provision in their agreement with Anaheim and OCVibe.
- Just three years ago, the council voted down a proposed gate tax on the city’s largest tourist destinations, including Disneyland, Angel Stadium, and the Honda Center.
- The 2% tax was expected to bring in $55-80 million annually.
- In 2015, the Anaheim City Council extended a 30-year ban on gate taxes established back in the 90s.
- Disney requested the extension be revoked in 2018, worrying the agreement could lead to tense relationships with the Anaheim community.
- In terms of budgeting, Anaheim will have an additional $120 million annually after the city finishes paying off bonds it took out in the 1990s to expand the resort area in preparation of Disney California Adventure.
- The city is looking to pay off other debts and refill its reserves.
Past Trouble for Rubalvaca:
- Elected in 2022, Rubalvaca faced heavy backlash after she was accused of using her influence in city hall in favor of Disneyland Resort.
- Last June, Rubalvaca faced a recall election led by the hotel workers union Unite Here Local 11.
- According to the 353-page document submitted by the union, private investigators had found evidence of misconduct, which was boosted by FBI sworn affidavits from 2022.
- Rubalvaca publicly denied these allegations and maintained her seat with an 8-point lead.
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