The Anaheim City Council voted Tuesday to pull a proposed 10% tax on rideshare trips from the upcoming ballot, ending a debate that had centered on funding for Disneyland and concerns about its impact on visitors and residents.

The measure would have added a 10% surcharge to trips booked through Uber and Lyft, with the additional revenue earmarked for projects related to the Disneyland resort. Under the plan, voters would have decided whether to approve the tax, creating a direct link between rideshare usage and the theme park’s financing.

Council members expressed worry that the added cost could discourage tourists from using rideshare services, potentially reducing the flow of visitors to the area. They also cited the possibility that local residents who rely on Uber and Lyft for daily transportation might see their expenses rise, a factor they believed could strain the community’s overall economic health.

After a series of discussions, the council unanimously agreed to remove the tax proposal from the ballot, citing the need to protect the city’s tourism base and avoid imposing extra financial burdens on commuters. The decision was finalized during the regular meeting held on August 11, 2026.

The move reflects a broader trend in California municipalities where officials weigh the benefits of targeted taxes against possible drawbacks for the travel and hospitality sectors. While some nearby cities have implemented similar fees to fund infrastructure, Anaheim’s leadership opted for caution, preferring to explore alternative financing methods for Disneyland-related projects.

With the rideshare surcharge off the table, Uber and Lyft will continue operating under existing fee structures, and the city will look to other revenue sources to support its development goals. The council’s action underscores the delicate balance local governments must strike between generating funds and preserving a welcoming environment for tourists and residents alike.