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Public Comment
From:davidklawe@roadrunner.com
Sent:Tuesday, July
To:Public Comment
Subject:\[EXTERNAL\] July 19th, 2022 City Council Meeting - Item #12
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Good Day, Mayor Pro Tem, Councilmembers and City Staff.
As a commissioner of the Budget, Information and Technology commission, I personally oppose Item #12.
Back in the mid-1960’s, The City Leaders decided, based on how well Disneyland, and surrounding area was doing, to
rely on Tourism as a major economic engine. The council, along with the Anaheim Union High School District, built the
original Anaheim Arena and Convention Center, which became an instant hit, hosting major concerts, professional
Basketball and other events. The city went on to build Angel Stadium and the second Anaheim Arena, now known as the
Honda Center. Plus multiple expansions of the Convention Center.
The city benefitted in multiple ways, including creating jobs, plus additional Sales and Property Taxes. But the main ways
the city benefitted by its investments in Tourism was in rents and other revenue from city owned facilities, plus the
Transit Occupancy Tax (T.O.T.).
The T.O.T. is a great Tax designed to Tax Tourists, as it is a Tax collected on Short Term Stays of 30 Days or less. It is also
a Tax that is not shared with other Governmental Agencies, unlike Sales and Property Taxes.
In May of 2022, the city collected $16.3 Million, a record amount. Year to Date, the city has collected $157.6 Million in
T.O.T., 61% over budget! A Tax that is forecasted to pay off our Bonds issued in the mid-1990’s in less than 10 years,
creating over an extra $100 Million a year for our General Fund. So the T.O.T. can easily pay off the recent bonds that
covered the COVID related spending without impacting the General Fund.
At the last council meeting, a new Ballot Initiative was approved to address a major loophole in the T.O.T,, to bring
millions more a year to the city. It is one that makes sense and should be the focus for the November election.
An “Entertainment” Tax would tax Anaheim Residents, along with others living in the region.
California Laws and Tax Codes prevent you from Taxing just a single business, such as Disneyland. You have to tax things
like Lodging Stays or Entertainment. Since residents spend much more money on various forms of Entertainment locally
as compared to Hotel/Motel stays, the city decided to use the T.O.T. tax to be the primary source to fund the General
Fund. A decision that has helped the city for over 50 years, and will continue to do so.
Taxing entertainment would punish residents. Residents who currently are struggling to buy gasoline, something heavily
taxed, along with groceries and other items due to inflation.
Please protect Anaheim Residents from additional costs and taxes by voting No to Item #12.
Thank You, David Klawe.
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