In a small saucepan, combine the sugar, orange juice, 1/4 cup water, honey and lemon and lime juices. Bring to a boil over medium-high heat, stirring constantly. Remove from the heat. Let stand for 15 minutes. Transfer to a blender. Add tarragon leaves; cover and process for 30 seconds or until blended. Strain and set aside.
In a large saucepan, bring remaining water to a boil. Remove from the heat; add tea bags. Cover and steep for 3-5 minutes. Discard tea bags. Stir in citrus mixture.
If a sugared rim is desired, sprinkle the sugar, tarragon and orange peel on a plate. Using orange wedges, moisten the rims of eight mugs; hold mugs upside down and dip rim into sugar mixture. Serve warm tea in mugs. Yield: 8 servings (2 quarts).