Disney Would Be Spared Anaheim Tax for 30 Years in Exchange for $1 Billion Investment
A little-known pact that for years has spared Walt Disney Co. from paying entertainment tax on its Anaheim amusement parks may be extended for three decades if the entertainment giant agrees to invest at least $1 billion in its resort properties in the coming years.
While supporters say they are encouraged that Disney will continue to expand in a city where Disneyland opened 60 years ago, critics say Disney is getting a special break that could put residents at risk if the city’s financial circumstances take a downturn.
The current agreement that exempts Disney from paying an entertainment tax expires in 2016. The City Council will hold a hearing on the new pact July 7.