California cities propose sales tax increases to address budget deficits

Several California cities are proposing sales tax increases or extensions on the November ballot to address structural budget deficits and rising costs.

In Orange County, Santa Ana is seeking to make its 1.5% Measure X sales tax permanent. City officials warn that without this measure, the city could face deficits of approximately $30 million by the 2028–29 fiscal year. Even with the tax made permanent, projections suggest a $13 million deficit remains due to rising personnel costs and service demands. Other cities in the region, including Orange, San Clemente, and Costa Mesa, are also pursuing measures to stabilize their finances.

In Tulare, the City Council has placed Measure A on the ballot, which proposes a 1-cent local sales tax increase. If passed, the rate would rise from 8.25% to 9.25%, generating an estimated $16 million annually for the General Fund. The city reports a projected 3.5% drop in sales tax revenue for fiscal year 2026 and faces rising costs related to inflation, pension obligations, and homelessness. The proposed funds would support emergency services, road repairs, and public safety.