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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC WORKS DEPARTMENT
DATE: JULY 28, 2026
FROM: PUBLIC WORKS AND OFFICE OF THE CITY MANAGER
SUBJECT: RESOLUTION ORDERING THE SUBMISSION TO THE
QUALIFIED VOTERS OF THE CITY OF ANAHEIM AT THE
GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 3, 2026, OF A GENERAL TAX
MEASURE SET FORTH IN A PROPOSED ORDINANCE
ADDING CHAPTER 2.16 (TOURISM MOBILITY TAX) TO
TITLE 2 (TAXES) OF THE ANAHEIM MUNICIPAL CODE TO
ESTABLISH A 10% ($2 AVERAGE) TAX ON RIDESHARE
TRIPS ORIGINATING FROM OR ENDING IN
NONRESIDENTIAL USE AREAS OF THE ANAHEIM
RESORT OR IN THE TRANSIT DISTRICT, PART OF THE
KATELLA DISTRICT AND NONRESIDENTIAL USE AREAS
OF THE ARENA DISTRICT AND THE STADIUM DISTRICT
ALL OF WHICH ARE WITHIN THE PLATINUM TRIANGLE
AREA
ATTACHMENT (Y/N): YES ITEM # 15
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Resolution, take the following actions:
i. Order the submission of a general tax measure establishing a 10% ($2 average) tax on rideshare trips within designated non-residential use areas of The Anaheim Resort and portions of the Platinum Triangle including the Transit District, part of the Katella District and non- residential use areas of the Arena District and the Stadium District to the qualified voters of the City at the General Municipal Election to be held on Tuesday, November 3, 2026, and determine that the general tax measure relates to organizational or administrative activities of government and creation of a government funding mechanism that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, Section 15378(b)(4); and
ii. Establish the deadlines for the filing of arguments and rebuttal arguments; and
Proposed Ballot Measure Enacting a Tourism Mobility Tax Ordinance July 28, 2026
iii. If desired by the City Council, designate up to three Councilmember(s) and two others to prepare and sign an argument in support of the tax measure and, if needed, a rebuttal argument to a potential argument opposing the tax measure; and
iv. Direct the City Attorney to prepare an impartial analysis of the measure pursuant to Elections Code Section 9280.
DISCUSSION:
Rideshare transportation services, such as Uber and Lyft, have significantly altered urban mobility patterns, contributing to increased congestion, particularly around special event venues, greenhouse gas emissions, air pollution, and wear and tear on the public infrastructure. In Anaheim, these impacts are most evident within The Anaheim Resort and the Platinum Triangle, where visitor attractions, entertainment venues, convention activities, and major sporting events generate exceptionally high concentrations of rideshare pick-up and drop-off activity. Managing these activities requires additional traffic engineering resources, curbside management, traffic control, signal timing adjustments, and public safety coordination to maintain safe and efficient transportation operations. Where commercial autonomous vehicle transportation services, such as Waymo, have been introduced, they have accelerated the alteration of urban mobility patterns. Other jurisdictions, including the City and County of San Francisco and the City of Berkeley, have adopted and implemented taxes on rideshare transportation services and commercial autonomous vehicles transportation services. San Francisco imposes a percentage tax on the business (i.e., Uber, Lyft, Waymo, etc.) for every trip originating in San Francisco based on the trip fare. Berkeley imposes a flat tax on the user requesting the ride for every trip originating in Berkeley. Berkeley’s tax does not apply to trips taken in commercial driverless vehicles (e.g., Waymo).
To better understand the magnitude of rideshare activity within Anaheim, the City retained Kittelson & Associates to evaluate transportation network company trip activity within The Anaheim Resort and Platinum Triangle. The study quantified existing rideshare activity and provided the basis for estimating future tax revenues under the proposed ordinance. The analysis estimates that on an annual basis there are about 1,540,000 rideshare trips to or from nonresidential areas within The Anaheim Resort and 240,000 rideshare trips to or from nonresidential areas within the Platinum Triangle.
Commercial autonomous vehicle transportation services are expected to become increasingly common throughout Southern California over the coming years. As these services expand into Anaheim, staff anticipates they will further increase passenger pick- up and drop-off activity within The Anaheim Resort and Platinum Triangle. Including these services within the proposed ordinance ensures that future transportation technologies are treated consistently with existing rideshare services.
Attachment 1 hereto consists of a proposed ordinance imposing a 10% ($2 average) tourism mobility tax on the users of rideshare and autonomous vehicle transportation services for every trip that starts or ends in areas of nonresidential use of The Anaheim Resort or in certain defined areas of the Platinum Triangle (i.e. the Transit District, the non-residential portions of the Arena District and the Stadium District, and the portion of the Katella District that is located east of SR-57) and a resolution ordering the submission of that measure to the voters at the November 3, 2026 election and ordering Proposed Ballot Measure Enacting a Tourism Mobility Tax Ordinance July 28, 2026
the consolidation of that election with the general municipal election held on the same day. Based on the information presented in the Kittelson report, the proposed tax could generate approximately $3,600,000 per year.
In The Anaheim Resort, the tax would not apply to certain residential use areas. In the Platinum Triangle, the tax would only apply to the Transit District, certain non- residential use areas of the Arena District and the Stadium District, and the portion of the Katella District that is located east of SR-57. Two diagrams attached to the proposed ordinance depict the areas that would be subject to the tax. Staff proposes to impose the tax only in the identified areas because they account for the vast majority of visitor- related rideshare activity within Anaheim and experience recurring traffic operations, curb management, and circulation challenges associated with major tourist destinations and special event venues. Limiting the tax to these areas focuses the measure where transportation impacts are greatest while avoiding application in predominantly residential neighborhoods.
As proposed, the tourism mobility tax would be payable by the user requesting the ride, but collected and remitted to the City by the business (i.e. Uber, Lyft, Waymo, etc.) operating the rideshare or autonomous vehicle transportation service. California law places limits on the City’s authority to impose the tax directly on the gross receipts of the rideshare companies attributable to trips within designated areas since the companies do not maintain offices within Anaheim and similarly limits the ability of the City to place the tax on rideshare vehicle drivers. Under the proposed ordinance, the transportation network company or commercial autonomous vehicle transportation company would collect the tax at the time the trip is purchased and remit the tax proceeds to the City. This collection process is similar to other locally administered transaction-based taxes and minimizes administrative burden on individual drivers and riders.
The proposed Tourism Mobility Tax is intended to establish a locally controlled revenue source to help offset the municipal service demands associated with high volumes of rideshare activity within Anaheim's primary visitor-serving districts. The measure is designed to ensure that transportation services contributing to increased demands on City infrastructure also contribute toward maintaining the public facilities and services necessary to support those activities as well as other public services.
Should Council approve this item, the proposed ballot question that will be presented to the voters is:
ANAHEIM TOURISM MOBILITY TAX. To maintain City services, including police, fire, 911 response; safe/clean public parks; address homelessness; repair streets; improve public transit/traffic congestion; other general services; shall a measure levying 10% ($2 average) on rideshare/driverless-vehicle company trips starting or ending only in nonresidential locations within The Anaheim Resort, the Transit District/Arena District/Stadium District/ part of Katella District within the Platinum Triangle, generating approximately $3,600,000 annually until ended by voters, requiring audits, spending disclosure, funds benefiting Anaheim residents, be adopted? Proposed Ballot Measure Enacting a Tourism Mobility Tax Ordinance July 28, 2026
The City, through its outside legal counsel, commissioned a survey that was conducted by FM3 to understand the views of Anaheim residents on potential issues of importance in terms of city services, the need for funding for those services, and the potential for a tax on rideshare trips within designated areas of the City that experience very high rideshare use. The survey results showed that voters supported maintaining or improving multiple types of public services including repairing city streets, reducing traffic congestion, maintaining police, fire and 911 response services, and improving public transit. As a general tax, the tourism mobility tax would require approval by a simple majority of Anaheim voters. Placing the general tax measure on the ballot does, however, require two-thirds of Council to approve pursuant to Anaheim Charter, Article XII, section 1208.1.
If the Council votes to place this measure on the November 3, 2026 ballot, it may also authorize up to three Councilmember(s) to prepare an argument in support of the tax measure and a potential rebuttal argument if arguments opposing the tax measure are received. The Council may recommend up to five persons (Councilmembers and/or others) to sign the supporting argument and potential rebuttal argument.
Economic Impacts
The proceeds of the tourism mobility tax would go to the general fund and be used to provide general City services, such as police, fire and emergency response, street maintenance, improving public transit, reducing traffic congestion, addressing homelessness, and community services. If the City Council places the measure on the ballot and the voters approve the ordinance, the revenues are estimated to be approximately $3,600,000 annually. The City Council may, if it desires to do so, adopt a separate resolution at a later Council meeting to identify priority uses for the estimated tourism mobility tax revenues.
IMPACT ON BUDGET:
Submission of the ordinance/tax measure to the voters at the General Municipal Election to be held on November 3, 2026 will cost approximately $8,500-$17,000. If the tourism mobility tax measure passes, it is anticipated that it will generate approximately $3,600,000 in annual tax revenues.
Respectfully submitted, Concurred by,
Rudy Emami Greg Garcia
Director of Public Works Interim City Manager
Attachment:
1. Resolution ordering the submission of a Tourism Mobility Tax measure on the ballot and attached proposed ordinance adding Chapter 2.16 to the Anaheim Municipal Code