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2025 sales tax closes under plan by $8.1M; county shared $106M with municipalities
Summary
Commissioner of Finance Kerry Gallagher reported 2025 sales-tax collections closed 2.67% under plan, a shortfall of $8,095,987.34, though collections remained above 2024 levels. Gallagher noted tourism is strong but many visitors are day-trippers and the 2026 budget assumes flat sales tax.
Kerry Gallagher, Orange County Commissioner of Finance, presented 2025 sales-tax closeout figures to the Ways and Means Committee on Feb. 24. Gallagher said total 2025 collections were 2.67% below plan, a shortfall of $8,095,987.34, but that collections were higher than in 2024. She told members the county had shared $106 million with municipalities under the sales-tax sharing agreement during the year.
Gallagher attributed part of the shortfall to early-year factors including a federal government shutdown and a change in administration that she said affected consumer confidence and spending patterns. She noted tourism remains strong but that many visitors are day-trippers rather than overnight stays; the 2026 budget assumes sales-tax collections will remain flat. Gallagher offered to provide longer-term comparisons and state association reports to legislators on request.
