Repeals section 2 of chapter 316 of the laws of 2025 relating to the use of tax funds collected by the county of Orange

2025 Regular Session Introduced by Rob Rolison and 1 co-sponsor

The bill repeals Orange County’s 2025 authority to impose an extra sales tax and the related fund-use rules, restoring the pre-2025 framework.

1ST REPORT CAL.1090

Summary of Bill: S 10188 (2025-2026) – Repeal of Orange County tax authority provision

Purpose and intent

The bill repeals Section 2 of Chapter 316 of the laws of 2025. That chapter previously extended the authority of Orange County to impose an additional rate of sales and compensating use taxes and set forth provisions regarding the use of the tax funds collected.

In short, the bill removes the statutory framework that granted Orange County new or expanded tax-raising authority and related fund-use rules that were established in 2025.

Key provisions and changes

Repeal of Section 2 of Chapter 316, Laws of 2025:

Eliminates the authority granted to Orange County to impose an additional sales and compensating use tax.
Removes the statutory guidelines about how the tax funds collected under that provision would be used.

Effective date:

The act is stated to take effect immediately and is deemed to have been in full force and effect on and after January 1, 2026.
Practically, this means the repeal retroactively aligns with the 2026 effective interpretation, nullifying the 2025-imposed or authorized tax provision from that point forward.

Who/what is affected

Orange County residents and businesses:

Any previously authorized or potential additional sales and use tax imposed by Orange County under the 2025 framework would be repealed.

County government and budgeting:

The mechanism for collecting the specified additional tax and the designated use of the tax revenue tied to that provision would be nullified.

State fiscal landscape:

State-level administration is not directly altered beyond removing the local tax authority and fund-use rules granted in the 2025 act; state statutes governing local option taxes remain unchanged except for this repeal.

Procedural and timeline aspects

Introduction and sponsorship: Introduced May 5, 2026; co-sponsored by Rob Rolison and James Skoufis.

Committee referral: Referred to the Investigations and Government Operations Committee.

** Legislative action**: As of the latest action, the bill has a first committee report and is poised for potential floor action after committee consideration.

Effective date nuances: Immediate effect with retroactive deeming to January 1, 2026, ensuring the repeal is treated as in effect for the 2026 period.

Practical takeaways

The bill restores the status quo by removing Orange County’s enhanced or new sales tax authority and the associated use-of-funds provisions that were enacted in 2025.

Local fiscal planning and tax policy discussions in Orange County would need to reference the pre-2025 framework or any subsequent local changes outside this repealed provision.

No new state revenue or expenditure changes are created; the action is a clean repeal of a local tax authority provision.