Voters in at least two Orange County cities could get asked to raise a host of tax increase measures in the November election as more officials look to reverse widening budget gaps by generating more tax revenue to keep local coffers afloat.
Those aren’t the only type of measures expected on the ballot this year.
Voters throughout OC are also expected to weigh in on a host of measures related to housing, open space, term lengths and city governance in the 2026 November Election.
In Costa Mesa, officials are exploring crafting two separate tax increase measures – one that would raise the city’s 8% hotel tax and another to raise the city’s business license tax that hasn’t increased since 1985.
[Read: It Might Cost More to Run a Business and Get a Hotel Room in Costa Mesa]
Paulette Lombardi-Fries, president of Travel Costa Mesa – the city’s tourism bureau, said in a statement last month that they would work with the city as they begin to explore the tax measures.
“Travel Costa Mesa will work with our hotel partners and with the city as they begin considerations for a hotel and business tax increase,” reads her statement.
Meanwhile, officials in Fullerton are also looking at crafting two 0.5% sales tax increase measures – one to fund infrastructure improvements like road repairs and another for public safety – as officials face a projected $9.3 million deficit next fiscal year.
[Read: Another Orange County City Considers Tax Increase to Solve Budget Woes]
The proposed tax measures in both cities have yet to be placed on the 2026 ballot.
A Repeat of 2024 Tax Measures?
Costa Mesa and Fullerton officials are the latest to consider asking residents to raise taxes following a host of local tax increase measures in the last presidential election.
In 2024, officials in a host of Orange County cities including Orange, La Habra, Buena Park and Seal Beach asked voters to approve a sales tax increase as city leaders warn of a projected bleak financial outlook that could threaten city services if not reined in.
Voters in all those cities approved the tax measures except in Orange, where voters rejected a 0.5% sales increase measure.
Meanwhile, city hired consultants warn the City of Orange is on the brink of bankruptcy.
[Read: An End to The ‘Orange Way’: Scrambling to Prevent Municipal Bankruptcy]
In neighboring Anaheim, officials grappled with a $64 million budget deficit last year, using a mix of bonds and one-time spending to close the gap.
The gap led Disney-backed City Councilwoman Natalie Rubalcava to propose Disneyland gate and parking tax measure that was projected to bring in up to $164 million annually if approved by voters.
[Read: Anaheim Officials Put Disneyland Gate Tax Proposal on Ice]
In the end, her colleagues shelved the proposal.
Land Use and Other Ballot Proposals
Tax increases are not the only measures potentially going up for a vote in the 2026 election.
In Irvine, voters could decide in June or November on an open space ballot measure that would determine if the Irvine Company could build thousands of homes at the Oak Golf Course – an area protected open space through a 1988 ballot measure.
[Read: Irvine Open Space Protection Ballot Measure Kicked to 2026]
In neighboring Newport Beach, voters will decide in November whether they want to toss out a state approved housing plan for one that zones for fewer homes after local organizations collected thousands of signatures to place a housing measure on the ballot.
The ballot initiative would nix the city’s current housing plan which zones for over 8,000 homes and replace it with one that zones for 2,900 new homes instead – potentially setting up a legal challenge between Newport Beach and state housing officials.
[Read: Newport Beach Voters to Decide on Taking Control of City’s Housing Plan]
Voters there may also decide on whether they’ll get a new surf park or keep their existing golf course next to John Wayne Airport after a coalition of residents submitted nearly 10,000 signatures trying to put the issue on the ballot.
[Read: Could Newport Beach Voters Decide the Future of a Golf Course?]
Further north, Fountain Valley residents will decide in November whether they want to become a charter city – a move that could mean city officials have more of a say over local housing regulations, elections and zoning.
[Read: Fountain Valley Could Become OC’s Newest Charter City]
It’s a move that Fullerton voters could also be potentially considering next year too.
Down south in Laguna Beach, voters will decide on whether they want to implement two consecutive 4-year term limits on City Council members and require a two-year hiatus before they can run again.
Laguna Beach is one of the last cities in Orange County that doesn’t have term limits.
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.