Santa Ana council sends Measure X sales-tax decision to voters
Santa Ana voters will decide Nov. 3, 2026, whether the city’s current 9.25% sales-tax rate will continue or whether the Measure X increase will begin its scheduled reduction.
The Santa Ana City Council voted 5-2 on July 7 to place the question on the November ballot. Councilmembers Jessie Lopez and David Penaloza opposed sending the measure to voters.
The vote does not decide the future of the tax. It determines that Santa Ana residents will make that decision in a citywide election. The result could materially change the city’s future budget outlook, although the approved sources do not provide a precise annual revenue difference between the two choices.
What Measure X changed
Measure X added a 1.5% local sales-tax increase in 2018. Santa Ana’s current sales-tax rate is 9.25%.
Under the existing schedule, the rate is set to decline by one-half percentage point in 2029 and expire in 2039. The November ballot question will ask voters whether to continue the current rate or allow that scheduled reduction to begin.
That distinction matters. The council has taken final action to put the question before voters, but voters have not yet approved or rejected either option. The available sources also do not include the full ballot language, so the measure is not described here as permanent.
Why the vote matters for city services
City staff said allowing the tax to decline would create a substantially larger budget shortfall than retaining it. That makes the ballot question a decision about more than the percentage charged on taxable purchases. It also concerns the city’s future ability to support services through its general fund.
The City of Santa Ana identifies the general-fund budget as $435 million. Services listed as supported by that budget include police, fire, libraries, parks, code enforcement, building safety and street repairs.
Those are the service areas connected to the city’s broader budget discussion. The approved sources do not, however, assign a specific share of any one department’s funding to Measure X. They also do not provide a department-by-department forecast of what would change if voters allow the tax reduction to proceed.
As a result, the immediate local consequence is clear: Santa Ana will hold a public vote over a revenue source tied to the city’s general-fund outlook. The precise effect on annual revenue and individual services remains unsettled.
What happens next
The next known step is the Nov. 3, 2026, election. Until then, the 9.25% rate remains the current rate, and the scheduled 2029 reduction remains the existing timetable described in the approved sources.
The ballot measure is expected to cost approximately $17,000. That is an estimated election cost, not a projection of how much revenue the city would gain or lose under either tax outcome.
The council’s 5-2 vote therefore moves the issue from City Hall to the electorate. Santa Ana voters will ultimately determine whether the current rate continues or moves toward the reduction already scheduled for 2029, while the detailed ballot wording and long-term budget consequences remain to be determined.
Sources
- City Council Recap: Jul. 7, 2026, The Santanero
- COSAS Newsletter: July 2, 2026, City of Santa Ana
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