Santa Ana voters are expected to decide Measure X tax’s future

Santa Ana voters are expected to decide on Nov. 3, 2026, whether the city should keep its current Measure X local transactions-tax rate at 1.5 cents per dollar instead of allowing it to fall to 1 cent in 2029.

The Santa Ana City Council voted 5-2 on July 7 to place the question before voters. Councilmembers Jessie Lopez and David Penaloza opposed the action. The council’s vote did not continue the tax by itself; voters will make that decision if the question appears on the November ballot.

What Measure X currently does

Santa Ana’s 2018 Measure X applies to taxable retail and restaurant purchases made in the city, subject to the exemptions and special rules listed in the original ballot materials. The measure established a 1.5-cent local transactions-tax component through March 31, 2029.

Under the schedule approved in 2018, the rate would then decline to 1 cent per dollar through March 31, 2039, before expiring. The proposed 2026 ballot question is intended to prevent that scheduled reduction and continue the current rate, although the final duration and terms depend on the ballot language filed with the Orange County Registrar of Voters.

The 1.5-cent figure refers to a 1.5-percentage-point local transactions-tax component. It does not mean every purchase is charged a separate 1.5 percent fee, because taxable categories, exemptions and other rules apply.

Why the council is sending the issue to voters

A City of Santa Ana mid-year budget update estimated Measure X revenue at approximately $83.1 million for fiscal year 2025-26. City officials and local reporting have cited a potential revenue loss of roughly $30 million if the rate falls as scheduled.

That potential loss comes as the city faces a projected fiscal year 2026-27 General Fund gap of about $13 million before proposed balancing actions. The budget materials do not attribute the entire gap to Measure X. They show the tax issue as one part of a broader fiscal outlook that could affect future budget decisions.

City officials have said maintaining the current rate would help support services including public safety, street work, parks, youth programs and homelessness services. If voters reject the continuation, the city would have to determine how to respond through future budget choices. The vote would not automatically trigger a specific number of layoffs, service reductions or another tax increase.

Opposition and the next deadline

Opponents argue that voters approved Measure X as a temporary tax with a planned rate reduction and sunset. That position puts the November question in the context of whether the city should follow the original schedule or ask voters to extend the current revenue level.

The next major checkpoint is the filing of final ballot language, expected in early August. Once that language is finalized, voters will have a clearer description of the proposed continuation, its duration and the terms that would govern the tax.

Sources

• Santa Ana City Council Measure X agenda item
• Orange County Registrar of Voters — 2018 Measure X ballot materials
• City of Santa Ana FY 2025-26 mid-year budget update
• LAist — Santa Ana voters to decide on keeping additional sales tax