Anaheim’s City Council opted not to advance a proposed tourism tax ballot measure last week and instead voted to allow the topic to come up again as part of other discussions on revenue and city strategic planning.
The council voted 5-2 to continue the item and potentially have it be part of a larger discussion about revenue, budget and potential city projects.
The proposal saw nearly two hours of debate and means a tourism tax proposal doesn’t move forward by the city of Anaheim at this time.
A “yes” vote would have put the question before Anaheim voters on the November 2026 general election ballot.
The council could touch on the issue again as it continues to explore what’s known as Strategic Plan Anaheim, the city’s outline of goals and objectives adopted in 2024.
A strategic plan update is expected before the council this month.
Community or other interest groups could work to gather signatures to try and place the proposal before voters in 2026.
The proposal had called for a 3 percent tax on admission tickets and a 10 percent tax on larger parking areas in Anaheim.
It was put forth by Council Member Natalie Rubalcava, who said additional revenue is needed to address Anaheim’s current budget deficit and potential future fiscal challenges.
Rubalcava also cited the ability to retain and attract employees and to support possible projects including a senior center, new police headquarters and other community needs.
“The more revenue we have, the more we can do for residents,” Rubalcava said.
Other council members expressed concern about creating overreliance on visitor revenue, which already makes up more than 60 percent of Anaheim’s funding for police, fire, libraries, parks, community centers and city obligations.
Concerns also included exclusion of Honda Center, a current lease that would call for rebating any tax on Angel Stadium of Anaheim and implications for a development agreement with Walt Disney Co. for DisneylandForward.
“I don’t think this is in the best interest of our city,” Mayor Ashleigh Aitken said.
Anaheim does not currently have a tourism tax but collects most city revenue from a tax on hotel stays as well as sales tax from visitors and property tax from visitor and entertainment venues.
Twenty-six members of the public, including resident and business representatives, spoke on the topic for more than hour with 15 in favor and 11 against.
During the presentation on the proposal, the Council also heard an update on the city’s budget, revenue sources, pending retirement of bonds and other topics.
Under the city’s charter, any vote on a tax item requires a two-thirds majority vote, or five members in the case of Anaheim’s seven-member Council.
