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Santa Ana’s 1.5% sales tax increase — dubbed Measure X when it was approved by voters back in 2018 — is set to decrease in 2029. And that means the city expects to lose out on about $30 million in revenue a year. Voters will be asked whether to let it sunset or make the tax permanent via a new measure: Measure N.
What’s at stake
The Measure X sales tax hike currently brings in about $84 million every year. These funds support city maintenance, police and other municipal functions. If the tax goes away as planned, city officials say they will need to make major cuts to services and programs to make up the difference.
Why now
When voters first approved the 1.5% sales tax back in 2018, Measure X proponents said it would be a temporary fix for the city’s financial woes. And it came with a deadline: The tax rate would drop to 1% by 2029, then completely go away in 2039. The fall general election is seen as the city’s opportunity to make that tax revenue permanent, before it reduces or expires.
Official title on the ballot: Measure N — Santa Ana Streets, Public Safety, Essential City Services Measure
Official language on the ballot:
"To maintain city services, such as fixing potholes; keeping streets, sidewalks, parks, and playgrounds safe and clean; removing graffiti and litter; providing fire protection, paramedic, crime prevention, and 911 emergency response, shall City of Santa Ana’s ordinance be amended to maintain the 1.5 cent sales tax without sunset providing approximately $84,000,000 annually for services until ended by voters, with independent audits, resident oversight, and all money locally controlled?"
What your vote means
LAist's Voter Game Plan guide will include more campaign financing information as we get closer to Election Day.