Orange May Ask Voters to Decide on New Sales Tax Measure

Residents in the City of Orange may soon be asked to weigh in on a new sales tax increase as city officials explore placing another measure on an upcoming ballot.

The discussion comes as Orange continues to face a structural budget deficit, with city leaders warning that current revenue levels may not be enough to sustain services long-term. Officials have already relied on one-time funds and budget cuts in recent years, but say those solutions are not sustainable moving forward. 

One proposal being considered is a sales tax increase of up to 1%, which leaders say could help stabilize the city’s finances and avoid deeper cuts to services like public safety, parks, and community programs. However, even supporters acknowledge that a tax increase alone may only provide short-term relief rather than fully solve the city’s financial challenges. 

The idea comes after voters previously rejected a smaller tax increase in 2024, meaning any new proposal would again need voter approval. If placed on the ballot, the decision would ultimately come down to residents, who would determine whether to support increased taxes in exchange for maintaining city services.

For Orange residents, the potential measure highlights a broader issue facing many cities — how to balance rising costs with maintaining the level of services the community expects.

If approved by the City Council, the sales tax measure would likely appear on a future election ballot in Orange, with voting taking place citywide across Orange, CA.