County seeks state fix to allow sharing full 3.75% sales tax with municipalities

Orange County officials said they will ask the State Legislature to amend session-law language that the county says unintentionally prohibits sharing the three‑quarters of one percent portion of a 3.75% sales tax with municipalities.

Richard Golden, the county attorney, told the Physical Services Committee on April 27 that the 3/4% surcharge was authorized in session laws in 2004 but not included in the codified statutes that are normally consulted. "In 2004 when the county asked for three-quarters of one percent sales tax increase it was included in the session laws, the actual laws that they pass, but not included in the codification, the books that everybody reads," Golden said. He added that county officials have been sharing the full 3.75% with municipalities since about 2014, and that the Comptroller recently told the county it could not share the 3/4% portion.

Golden said the county drafted a resolution containing the statutory citations and language the Legislature would need to prepare bills quickly, and that the resolution requests retroactive effect to Jan. 1, 2026. Committee members discussed the timetable for the state session and possible special sessions to file the county's Home Rule request once bills are introduced. Chairman Barry J. Cheney thanked Golden for clarifying the county's plan.

Why it matters: Municipal budgets in Orange County have been receiving a share of the 3.75% tax since 2014; if the Legislature does not act, municipalities could lose revenue or the county would need to seek another remedy. The county's approach is to have the Legislature amend the session law so the practice can continue and be reflected clearly in codified law.