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 Karl Brabenec and 4 co-sponsors

Represents repeal of 2025 Orange County law that allowed an extra local sales tax and dictates its use, restoring prior tax framework.

SUBSTITUTED BY S10188

Bill Summary: A 11249 (2025-2026) — Repeal of Orange County Sales Tax Provision

Purpose and Intent

This bill repeals section 2 of chapter 316 of the laws of 2025, which had extended Orange County’s authority to impose an additional rate of sales and compensating use taxes and to specify the use of the tax funds collected.

In effect, it reverses or nullifies the 2025 law that granted or extended the county’s power to levy an additional local sales tax and to designate how the resulting tax revenues could be used.

Key Provisions

Repeal of Section 2 of Chapter 316 of the Laws of 2025: The core action is to remove the statutory framework that previously authorized Orange County to impose an additional sales and compensating use tax and to regulate the use of those tax funds.

Effective Date: The act purports to take effect immediately but is deemed to have been in full force on and after January 1, 2026. This creates a retroactive-like alignment to 2026 for the repeal’s operative effect.

Who Would Be Affected

Orange County and its municipalities: The primary impact is on the county’s ability to authorize and collect an additional local sales tax (and compensating use tax) and to designate how such revenue would be allocated or used.

Local governments and residents within Orange County: Revenue-raising capacity and potential funding streams from an added local tax would be removed or curtailed as a result of the repeal.

State-local fiscal dynamics: Any previously planned or contingent use of the tax funds defined under the 2025 law would no longer be authorized, potentially affecting budgeting and public-finance planning at the county and municipal levels.

Procedural and Timeline Notes

Introduced May 4, 2026; referred to Ways and Means.

Sponsor group includes Assembly members Eachus, Jacobson, Kay, Maher, Brabenec, with joint authorship by multiple sponsors.

Motion to move through the legislative process: The bill has progressed through committee and floor actions, with a substitution by S10188 noted in the history, and as of June 1, 2026, the measure has been reported to Rules and scheduled for third reading.

Immediate-effect language: The bill states immediate effect but also specifies it is deemed to have been in full force and effect on and after January 1, 2026, reinforcing retroactive alignment.

Practical Impact

Removes legal authority for Orange County to impose an additional sales and compensating use tax (beyond any existing state/local taxes at the time).

Eliminates statutory guidance on the use of any such tax revenues that would have been collected under the 2025 chapter.

Clarifies that the 2025 provision would no longer govern the county’s tax powers, potentially restoring or preserving status quo ante for local tax policy prior to the 2025 enactment.

Notes for Stakeholders

Counties and municipalities should review current or planned budgetary projections that depended on the 2025 tax authority.

Taxpayers and residents may see changes in potential local tax assessments or funding programs if any were contingent on the additional tax revenue.