Orange County voters will consider thirteen city ballot initiatives in the upcoming election, with over half focusing on new taxes designed to address municipal budget imbalances across the county.
In the City of Orange, leaders are seeking voter approval for a 1% sales tax increase, which they estimate could generate over $37 million annually. These funds are intended to help alleviate growing deficits in the city's general fund. This marks Orange's second attempt to pass a sales tax measure, following a 2024 proposal for a 0.5% sales tax that did not pass. The previous failure led to the city council reallocating funds from infrastructure projects and eliminating vacant job positions to balance the budget. Additionally, Orange city council members are asking voters to approve a change from a general law city to a charter city, a move they suggest would offer greater local control and assist in managing the municipal budget deficit.
San Clemente leaders are also proposing a 1% sales tax increase. This measure, if approved by voters, is estimated to generate around $15 million per year, specifically earmarked for acquiring sand and implementing other measures to protect the city’s rapidly diminishing beaches.
In Santa Ana, city council members are asking residents to make permanent a 1.5% sales tax increase initially approved in 2018. City leaders are currently facing challenges in balancing the municipal budget, having reduced millions in spending this year alone. Multiple city leaders are predicting significant financial challenges if the existing tax were to expire.
Several Orange County cities are seeking to increase their transient occupancy tax (TOT), a fee applied to hotel room stays. Placentia and Orange leaders are proposing an increase in their hotel bed taxes from 10% to 14%. While Placentia is reported to be in better financial health than Orange, the city has still been addressing budget issues, including two staff layoffs earlier this year. Westminster and Los Alamitos leaders are proposing to raise their hotel taxes from 8% to 12% if approved by voters.
Beyond fiscal measures, other initiatives address local governance. Laguna Beach leaders are asking voters to implement term limits for city council members, requiring a two-year waiting period after serving two terms before they can run for office again. Conversely, Lake Forest leaders are seeking to overturn their current two-term limits, proposing a four-year cool-off period after council members serve two consecutive terms, which would remove the existing lifetime two-term cap.
Irvine voters will consider a proposal to adopt ranked choice voting, a system allowing voters to rank candidates by preference rather than selecting a single candidate. If approved, this new voting model could be implemented as early as the 2028 elections.
In Newport Beach, one ballot initiative has qualified for the upcoming election: the Responsible Housing Initiative. This measure, financially supported by a major developer, aims to cap the total amount of housing that can be built within the city. Three other proposed initiatives for Newport Beach, which aimed to improve transparency, establish term limits, and shift to district elections, were not approved in time for the 2026 ballot, according to the Orange County Registrar of Voters.
Costa Mesa leaders are looking to modify the city's business license fee structure. The proposed change would base fees for larger businesses on their gross income, a move that the city’s website suggests could generate over $4.6 million for city coffers. Proponents note that the cost to operate a business in Costa Mesa has not increased since 1985.
