Voters in Orange will decide again in November whether to approve adding a local sales tax to raise revenue for city operations.
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The Orange City Council, with a 5-1 vote during a June 3 meeting, agreed to ask voters to approve the 1 cent local sales tax with a 13-year lifespan. The tax, if passed by voters, is projected to generate about $37 million a year.
The revenue, according to the measure’s verbiage, would go toward maintaining the city’s “quality of life such as 9-1-1 response, maintaining police/fire protection, preventing crimes/thefts, retaining/attracting well-trained police officers/firefighters, keeping public parks safe/clean, addressing homelessness, wildfire protection/prevention, repairing streets/potholes, critical infrastructure improvements.”
If the tax is approved, councilmembers also vowed to establish an “independent oversight committee” to assess spending.
Councilmember Denis Bilodeau cast the sole opposed vote.
Orange has struggled over the last few years with a structural deficit and in 2024 the council asked voters to approve a half-cent local sales tax measure to help alleviate that budget problem. That proposal, which was estimated to generate about $19 million annually, was narrowly rejected.
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And, racing against this year’s June 14 deadline to place measures on the November ballot, Orange city leaders in recent months have pitched different ideas for raising money, including opening the door to dispensaries with a tax on cannabis sales and even adopting a charter, or a local constitution, with tax measures weaved into it.
The sales tax in Orange County is 7.75%, which includes the base, statewide 7.25% and another half cent that is collected countywide for transportation. Nearly a dozen OC cities collect a local sales tax on top of the 7.75%
Councilmembers last week approved also putting before voters a 5% increase on a tax on hotel stays, from 10% up to 15% for hotels with more than 10 rooms. That increase, if approved, is projected to generate $3 million annually.
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