Return of the tax credit: a Star Wars expansion at Disneyland helps keep an entertainment fee at bay.

• Author: Shackford, Scott

LONG BEFORE Disney bought Lucas-film in 2012, the Star Wars franchise had a significant presence in the former company's signature theme parks. Star Tours, a bouncy motion-simulation ride set in the Star Wars universe, premiered at Disneyland all the way back in 1987. Young kids can enjoy a Jedi "training" stage show at Tomorrowland in both the California and Florida parks, complete with the opportunity to prove their lightsaber supremacy against Darth Maul. Star Wars--derived merchandise can be found in park stores, complete with Disneyfied variations such as Mickey Mouse as Luke Skywalker and Goofy as Darth Vader.

While Star Wars lovers across the world celebrated news that Disney would resurrect the franchise in theaters, fans of the parks wondered what it would mean for the company's profitable Happiest Places on Earth. They got their answer in August, when Disney announced that entire "lands" would be constructed in Anaheim and Orlando devoted to all things Star Wars, complete with new rides and attractions.

In Anaheim, the news marks Disneyland's first major expansion since Mickey's Toontown opened in 1993. While rides in that park have seen technological upgrades and refurbishments, almost all expansion has been confined to Disneyland's nextdoor companion park, Disney California Adventure, which is dedicated to Hollywood themes and attractions inspired by Pixar movies.

While Disney was plottingout this new growth, an important tax deal with the city of Anaheim was approaching its sunset. In 1996, Disney and the Anaheim City Council struck a 20-year deal. The city would not apply an entertainment tax or "gate tax" on ticket sales to Disney parks, with the understanding that Disney would continue to expand and improve. It was under this agreement that Disney built California Adventure, which opened in 2001.

In 2015, Disney sought to extend the tax exemption, again with the promise that it would grow. In July (before the Star Wars expansion was formally announced), the City Council voted 3-2 to extend the ban on gate taxes for another 30 years, provided that Disney spends $1 billion on new attractions and a new parking garage. The expansion has to begin by 2017 and be completed within seven years. If Disney can come up with an additional $500 million project, it can extend the exemption for another 15 years. There are rumors that Disney wants to add more to the California Adventure park, possibly related to its ownership of Marvel...