Disneyland Tickets to Likely Increase via Entertainment Tax

[Tigger Trainer]

https://www.ocregister.com/2018/08/...-agreements-are-divisive-so-lets-rip-them-up/

Currently we do not have to pay tax on park tickets. It appears that in an effort to mend relationships Disneyland has asked the city to stop all incentives so this likely equals an increase on our part. Sad day. I guess it is only another 8%.

 

[azdisneylover]

It is a sad day, indeed.

 

[beachdreamr1229]

I don't know...there's always a ticket increase it seems. Sad day, or just another day in the business world?

 

[mich311e]

I can't read the article, does anyone know when will this take effect?

 

[BGinCali]

I can't read the article, does anyone know when will this take effect?

The article says the city would need to act on it first - and next week would be the soonest they would take it up for consideration. I didn't see any anticipated effective date.

 

[ParkHopper1]

I guess it is only another 8%.

Ticket tax or Entrainment tax does not mean sales tax. That is a state thing, the city can not impose sales tax on a theme park ticket that is not subject to sales tax per CA tax code. Cities only see a small percent of sales tax anyway.

Which means that "tax" rate if imposed is yet TBD and would not necessarily be at the Anaheim sales tax rate.

 

[LAX]

This is a very shrewd move by Disney. By offering the city to impose a "gate tax" presumably to preserve the tax subsidies on its planned hotel, it's essentially shifting the financial burden from the city to its visitors. It would end up being a "win" for Disney in either case.

LAX

 

[agamble]

Thanks for the article. Very interesting. Before reading it I was thinking this was just about winning the city back over. However, after reading the article I think there is more to this. They promised to put 1 Billion dollars into Disneyland. That included a couple big projects, including the cancelled (due to the city) Eastern Gateway project. I don't think it included the hotel, since that was a separate deal, but it may have. In any case the city has now put a halt to the hotel plan since Disney only wants to build it IF they get the promised tax return. It is almost like Disney is saying we no longer want to invest 1 Billion dollars into Disneyland in this time frame because two (or more) of our projects have been halted.

I still believe this may be about choosing a battle to win the war. That is give back the entertainment tax in hopes of getting their hotel built. But it does make me think that maybe they are looking to invest less in Disneyland since Anaheim is being a pain. I don't really blame them either. Two projects cancelled in a year due to red tape. I'm annoyed and it didn't cost me a dollar. I can only imagine how those bean counters at Disney feel.

 

[chickapin parterre]

I don't know...there's always a ticket increase it seems. Sad day, or just another day in the business world?

the tax is not about business but states in trouble...next Tuesday, Arizona voters will vote on the newly discovered tax called service and entertainment taxes....this will be the test

 

[dina444444]

Thanks for the article. Very interesting. Before reading it I was thinking this was just about winning the city back over. However, after reading the article I think there is more to this. They promised to put 1 Billion dollars into Disneyland. That included a couple big projects, including the cancelled (due to the city) Eastern Gateway project. I don't think it included the hotel, since that was a separate deal, but it may have. In any case the city has now put a halt to the hotel plan since Disney only wants to build it IF they get the promised tax return. It is almost like Disney is saying we no longer want to invest 1 Billion dollars into Disneyland in this time frame because two (or more) of our projects have been halted.

I still believe this may be about choosing a battle to win the war. That is give back the entertainment tax in hopes of getting their hotel built. But it does make me think that maybe they are looking to invest less in Disneyland since Anaheim is being a pain. I don't really blame them either. Two projects cancelled in a year due to red tape. I'm annoyed and it didn't cost me a dollar. I can only imagine how those bean counters at Disney feel.

The eastern gateway was somewhat replaced with them deciding to build the additional parking spaces that were already allocated for Mickey and friends. The other win for Disney in cancelling these tax incentive agreements is they won’t be subject to the $18/hr living wage on the Anaheim ballot right now for companies that get incentives from the city.

 

[Malcon10t]

Thanks for the article. Very interesting. Before reading it I was thinking this was just about winning the city back over. However, after reading the article I think there is more to this. They promised to put 1 Billion dollars into Disneyland. That included a couple big projects, including the cancelled (due to the city) Eastern Gateway project. I don't think it included the hotel, since that was a separate deal, but it may have. In any case the city has now put a halt to the hotel plan since Disney only wants to build it IF they get the promised tax return. It is almost like Disney is saying we no longer want to invest 1 Billion dollars into Disneyland in this time frame because two (or more) of our projects have been halted.

I still believe this may be about choosing a battle to win the war. That is give back the entertainment tax in hopes of getting their hotel built. But it does make me think that maybe they are looking to invest less in Disneyland since Anaheim is being a pain. I don't really blame them either. Two projects cancelled in a year due to red tape. I'm annoyed and it didn't cost me a dollar. I can only imagine how those bean counters at Disney feel.

Star Wars is the billion they are putting in.

The hotel can be built without the subsidy and they won't need to follow Anaheim's rules for building. They can build the way they wish. They can build a value hotel, spend 1/4 the funds, make it hotel that will be at 100% occupancy, but the occupancy tax won't be what it was with the 4 diamond Anaheim was wanting.

As for "giving back the entertainment tax", it has never existed. It has always just been a tax threatened by Anaheim to try and keep Disney in line. Disney has tried to protect its guests from this tax, but when it happens, this tax will come out of our pockets. Isn't it interesting that the majority of Anaheim's revenue comes from Disney visitors?

This is a very shrewd move by Disney. By offering the city to impose a "gate tax" presumably to preserve the tax subsidies on its planned hotel, it's essentially shifting the financial burden from the city to its visitors. It would end up being a "win" for Disney in either case.

LAX

Either way Disney guests pay because we pay the gate tax, and we pay the occupancy taxes.

 

[bumbershoot]

Isn't the no-entertainment-tax thing statewide, though? It doesn't just affect Disneyland. It is why my Erasure ticket in SF wasn't as expensive as it would have been in WA, etc.

No one noticed this gem? It was pulled out in the Dis article about it.

"The announcement comes a little more than two months before the Nov. 6 election, when Anaheim voters will decide a ballot measure incrementally raising the minimum wage to $18 an hour by 2022 for workers at hotels and entertainment businesses that have received tax incentives from the city.


So they are looking at paying a close to living wage if they keep the tax incentives, so they are dropping the tax incentives. Nasty nasty disney.

 

[Malcon10t]

Isn't the no-entertainment-tax thing statewide, though? It doesn't just affect Disneyland. It is why my Erasure ticket in SF wasn't as expensive as it would have been in WA, etc.

There is no state tax. However, any city could potentially create their own tax on something like this. Chicago just passed an entertainment tax of 5%.

"The announcement comes a little more than two months before the Nov. 6 election, when Anaheim voters will decide a ballot measure incrementally raising the minimum wage to $18 an hour by 2022 for workers at hotels and entertainment businesses that have received tax incentives from the city.


So they are looking at paying a close to living wage if they keep the tax incentives, so they are dropping the tax incentives. Nasty nasty disney.

Disney already set up with unions to increase pay prior to Anaheim adding this in June. Nasty, nasty Anaheim for pulling a bait and switch. "Yes we approve you" - Oct 2017. "Oh, now that you have started the project, we are changing the game" - June 2018

 

[DizMe]

So no hotel in DTD, which is fine with me but leaves that portion of DTD in a weird place, and the potential for a significant additional increase to my already-very-expensive AP. What's not to love? Any idea what the gate tax might look like?

 

[bethwc101]

So if we purchase tickets now before the alleged price increase, will we have to pay the difference? I wouldn't think so because we would have our paper ticket we take straight to the booth.

 

[Cal-Pie]

So if we purchase tickets now before the alleged price increase, will we have to pay the difference? I wouldn't think so because we would have our paper ticket we take straight to the booth.

I cannot imagine having to pay a retroactive tax on something you'd already purchase. I personally don't think any of this will actually happen, I think a compromise will be reached.

 

[Malcon10t]

Since the tax doesn't exist, we have no idea what it could be. It can't be retroactive. And it is probably at least 2 years off, though I could see Anaheim trying to push it thru for a June 1, 2019 start. But I doubt that would happen. They do need to find a way to cover the pension gap though.

 

[Malcon10t]

They will find a place to spend their money

 

[agamble]

Disney already set up with unions to increase pay prior to Anaheim adding this in June. Nasty, nasty Anaheim for pulling a bait and switch. "Yes we approve you" - Oct 2017. "Oh, now that you have started the project, we are changing the game" - June 2018

That is how I feel about these projects. Ever since the Gateway got put on hold and then cancelled it has felt like Anaheim is just being a pain. And now the hotel. They could have told them when they first put out the plan to switch location that they would no longer subsidize the taxes. But they didn't. They waited until Disney closed all those businesses and booted out other businesses to allow for more dining due to the closing restaurants. That didn't just affect Disney either. It affected all those other businesses that Disney removed from DTD over the last year. It is not nice.

 

[Cal-Pie]

I personally don't think any of this will actually happen, I think a compromise will be reached.

Well, I was wrong. Anaheim city council voted to cancel Disney's tax subsidies last night.