Orange backs car rebate tied to sales tax vote

ORANGE, Calif. — Orange City Council members voted 4-2 to approve a car purchase rebate program that would offer residents and local businesses up to $500 on qualifying vehicle purchases if voters pass a November sales tax measure, Voice of OC reported.

The proposal ties a local tax campaign to incentives at five Orange dealerships, with city officials weighing budget pressures against concerns over using public money to support one industry.

The program would apply to Mazda, Sellman Chevrolet, Nissan, Toyota and Villa Ford in Orange, according to Voice of OC. New vehicle purchases or leases by eligible Orange residents and businesses would receive a $500 rebate, while used vehicles priced at $15,000 or more would qualify for $250.

Residents and businesses would need to show proof of Orange residency or an Orange business license when buying a vehicle, Voice of OC reported. The rebate would be applied at the point of sale and would move ahead only if voters approve the November tax measure.

The city expects the program to cost $1,600,000 each year, including $1,550,000 for rebates and $50,000 for marketing, according to Voice of OC. If enacted, it would start April 1, 2027, and run through April 1, 2040.

Councilman Denis Bilodeau supported the plan as a local buying incentive. “It’s because of this and because I don’t like paying taxes and I don’t think many people do, I’m going to support this tonight because I think it’s an important incentive to give our Orange residents to live and shop in Orange,” Bilodeau said, according to Voice of OC.

Resident Reggie Mundekis also backed the proposal during public comment. “It’s a win-win. It encourages people to buy in Orange, it’s a buy local program, it helps car dealers sell cars to residents in Orange and also to lease cars. I think it’s a great idea,” Mundekis said, according to Voice of OC.

Opponents questioned whether city dollars should go toward car buyers and dealerships instead of lower-income residents. “So the fact that we would be doing this program but my colleagues have not even entertained the idea that we would help the lowest income individuals in our community really gives me pause and makes me, honestly, very angry,” Councilmember Arianna Barrios said, according to Voice of OC.

The rebate plan now depends on whether Orange voters agree in November to raise the city’s sales tax.