Measure J: J – City of Orange, City of Orange Hotel Guest Tax Modification Measure

In plain language

Measure J would update the City of Orange's hotel guest tax. This tax is paid by hotel guests, not hotel owners. It would raise the rate from 10% to 14% for hotels with 11 or more rooms. Hotels with 10 or fewer rooms would stay at 10%. The tax would also apply to the full amount guests pay, including amounts collected by online travel or booking companies. The money would go into the city's general fund. It could be used for any lawful city purpose, such as police, fire and emergency response, parks, and streets. A YES vote approves these changes. A NO vote means these changes are not made.

Fiscal impact

Raises the hotel guest tax from 10% to 14% for hotels with 11 or more rooms. The city estimates this would raise about $3 million a year, until ended by voters. Actual revenue depends on how full hotels are, room rates, and related charges.

Impartial analysis

City of Orange Measure J The City Council of the City of Orange is submitting Measure J to the voters for consideration at the November 3, 2026 General Municipal Election. If approved by a majority of the voters, Measure J would amend Chapter 5.16 of the Orange Municipal Code to update the City’s Transient Occupancy Tax (“TOT”), commonly referred to as the hotel guest tax. The TOT is imposed on the occupancy of hotel accommodations and is paid by hotel guests rather than by hotel operators. The ordinance would continue to require operators to collect and remit the tax to the City. The measure would increase the TOT rate from 10 percent to 14 percent for hotels with eleven (11) or more accommodations. Hotels with ten (10) or fewer accommodations would continue to be subject to the existing 10 percent tax rate. The ordinance would also update the City’s TOT definitions and apply the tax to the full amount charged to guests for accommodations, including amounts collected by accommodations intermediaries such as online travel or booking companies, as provided in the ordinance. Revenue generated by the measure would continue to be deposited into the City’s General Fund and may be used for any lawful municipal purpose. The ordinance does not dedicate revenues to any specific purpose or program. Revenues may be used for City services, including public safety, emergency response, street and infrastructure maintenance, parks, libraries, and other municipal services. The City estimates that the measure would generate approximately $3 million annually, although actual revenues will depend on hotel occupancy, room rates, and related taxable charges. A “Yes” vote on Measure J authorizes the City to amend the Transient Occupancy Tax by increasing the tax rate from 10 percent to 14 percent for hotels with eleven (11) or more accommodations, applying the tax online and other travel companies, and updating the tax to apply to the full amount charged to hotel guests, as provided in the ordinance. A “No” vote on Measure J does not authorize those changes to the City’s Transient Occupancy Tax. Nathalie Adourian City Attorney

Official ballot arguments

Filed for the official voter guide by each side, printed as submitted.

The official arguments will appear here once both sides’ arguments are on file.