Walt Disney Co. is looking for a 30-year extension to its tax exemption in Anaheim, California as the company plans to a billion dollar expansion in the city, but the mayor who previously supported the tax break is now looking to get more to fund government programs.
Reuters reported that the city council will vote on Tuesday on whether to exclude the Disneyland Resort from any entertainment tax that the city may impose in the next 30 years. In 1996, the city agreed to reimburse the Disney's theme parks in case it passes and entertainment tax. This is set to expire next in June 2016.
The report said Disney and its supporters are pointing to the economic benefits derived by the city from Disney's presence as the theme parks provides 28,000 jobs there, making it the biggest employer in the whole of Orange County.
Michael Colglazier, president of the Disneyland Resort, earlier asked Anaheim's government to continue the policy as the theme park has been a partner in the city's development.
The wire agency, however, noted that Anaheim Mayor Tom Tait is against providing a tax break to Disney with the city needing an estimated $500 million for pension obligations. It added that two council members are for the extension, while two more have yet to decide. Tait supported the original tax break.
If the tax break is extended, Disney plans to build new entertainment facilities by 2017 and finish by 2024. The company also pledged to make road improvements benefitting the city. Reuters reported that a study commissioned by Diney showed that the theme park's expansion will create 2,100 permanent jobs.
Bloomberg noted that Disney's Disneyland and California Adventure account for more than half of the city's general revenues in form of hotel, sales, property and business license taxes.
