Anaheim city officials voted against advancing a proposal to place a 10% tax on Uber and Lyft rides to key local destinations on the November ballot. The measure would have applied to rideshare trips heading to the Anaheim Resort area, including Disneyland, and parts of the Platinum Triangle encompassing venues such as the Honda Center and Angel Stadium.
City Council members considered the proposal during a Tuesday meeting but ultimately failed to secure the majority required to move it forward. The tax was projected to average about $2 per ride, according to a city staff report. The effort to introduce the tax came as Anaheim finalized a budget that addressed a $45 million shortfall through the use of financial reserves and the sale of a city-owned parking facility.
Despite the potential revenue benefits, officials expressed concerns about the tax’s impact on local residents, particularly those employed in the resort district. Councilmember Carlos Leon emphasized the financial burden on workers who rely on rideshare services for daily commutes, noting that $2 added to each trip could total around $30 per week for some.
A consulting firm, retained by the city, estimated that approximately 1.5 million rideshare trips occur annually to and from nonresidential locations within the Anaheim Resort, with about 240,000 trips taking place in the Platinum Triangle. The city projected the tax could generate $3.6 million annually for the general fund and anticipated applying the levy to emerging self-driving services such as Waymo.
Representatives from Uber and Lyft strongly opposed the tax proposal. Lyft’s director of public policy, Nick Johnson, argued that the increase could raise ride costs and reduce trip volume in a high-demand area, potentially decreasing driver earnings, as event-based travel constitutes a significant portion of their business. Johnson also suggested that many riders deterred by the tax might choose private vehicles over public transit, which could exacerbate local traffic congestion.
Uber’s head of public policy for California, Danielle Lam, expressed frustration over the short notice the company received regarding the proposal, learning of it just 24 hours before the council meeting. She highlighted the essential role rideshare services have played since the suspension of Anaheim Regional Transportation buses in March, particularly for hospitality workers, residents attending appointments, and visitors moving between hotels and venues. According to Lam, Uber has absorbed much of the displaced demand, underscoring the service’s integral role in the city’s transportation infrastructure.
Ultimately, concerns over potential costs to workers and opposition from rideshare companies influenced the council’s decision not to move the tax proposal forward for voter consideration.