Orange County legislature moves to maintain three‑quarter‑percent sales tax; county reports slight shortfall in January

The Ways and Means Committee voted to keep the county’s current three‑quarter‑percent sales tax rate in place for two more years and heard a data update showing year‑to‑date sales tax receipts through January were below budgeted projections.

Supporters told the committee the sales-tax revenue is a critical revenue stream that helps limit property-tax increases for local homeowners and funds capital projects such as infrastructure and parks work. Several legislators reviewed town-by-town estimated impacts if the sales tax were reduced, saying reductions would shift pressure back to property tax levies and reduce funds that municipalities expect in their budgets.

Committee staff reported year‑to‑date sales tax through January was $3.8 million below projections (about 1.38 percent) and that January receipts were down 4.69 percent (approximately $851,000) compared with budgeted expectations for the month. Staff also reminded the committee that two accrued payments tied to the holiday season are expected to be received in February and will affect accounting for fiscal years differently for county and municipal budgets.

The committee approved the sales tax renewal request and passed the motion without a recorded roll-call vote in the transcript; members responded “Aye” when the question was called.