Santa Ana faces criticism over plans for a ‘temporary’ sales tax that may become permanent.

The Santa Ana City Council is actively seeking to make a temporary tax increase permanent, a move that raises concerns over fiscal responsibility and transparency. Currently, the base state sales tax in California stands at 7.25%, augmented by an additional 0.5% tax in Orange County to support local transportation projects. In 2018, Santa Ana voters approved Measure X, which added a 1.5% sales tax, elevating the total tax rate in the city to 9.25%. This measure, however, was designed with a sunset clause, intending to reduce the additional tax to 1% in 2029 and eliminate it entirely by 2039.

Despite this pre-established timeline, the city council is exploring the option of bypassing these terms by making the tax increase permanent. Recent reports indicate that the council has directed city staff to prepare the wording for a potential ballot measure in November 2026. This effort follows a December poll assessing public support for the initiative, perhaps signaling a strategy to craft language that would favor the council’s agenda.

Santa Ana’s high tax rate already leads many residents to seek purchases elsewhere, where sales tax rates are more favorable, such as in neighboring cities like Tustin and Irvine, where the tax rate is 7.75%. Critics of the council’s proposal argue that the city’s financial difficulties are not caused by insufficient revenue, but rather by a lack of sound financial management.

In 2024 alone, the Santa Ana police department received a substantial million raise as part of a new contract with the Police Officers Association, which includes annual pay increases for the subsequent years. Such expenditures raise questions about the city’s budgeting strategies, especially in light of projected revenue declines amounting to million over the next five years—a consequence of the anticipated termination of Measure X.

Residents and voters should be wary of any attempt to extend this temporary sales tax without careful consideration. Measure X was initially approved on the premise of its expiration, and transitioning to a permanent tax would be a significant deviation from the voters’ intentions. It is imperative for both the city council and the electorate to prioritize responsible governance and adherence to the commitments made during the passage of Measure X. The proposed permanence of this tax increase should be viewed critically, as it could undermine the trust and financial strategies expected from elected officials.