Tempe residents will vote on a 0.5% sales tax increase, with the funds going towards transit, public safety and childhood education.
In a special election held alongside the state midterm election on Nov. 3, Proposition 424 will increase the City of Tempe local sales tax by 0.5%, changing it from 1.8% to 2.3% and exempting food for home consumption. This would equal an extra 50 cents on $100 purchases, according to the city of Tempe's website.
READ MORE: Arizona's 2026 midterm elections are here. What Sun Devils need to know
The current breakdown for the tax rate is 1.2% toward the general fund, 0.5% for transit and 0.1% for arts and culture.
Shauna Warner, the neighborhood services director in Tempe, stated that this tax would hopefully work to offset the revenue loss of 25.7 million dollars due to the statewide repeal of the residential rental tax, federal income tax conformity and the incorporation of San Tan Valley.
"Tempe's resident population has increased from about 166,000 in 2005 to 190,000 today," Warner said. "When we combine residents, students and visitors, Tempe serves approximately 5 million people each year."
Tom Duensing, a Tempe resident and chair of the Tempe Forward PAC, said that he supports the proposition because he believes it will help to fill the revenue gap and help support services that are important to residents.
"The increase is not only shared by residents, (but by) visitors in Tempe and you saw the significant amount of visitors that come to Tempe," Duensing said. "It basically doubles in size every day."
The funding from the proposed sales tax increase of 0.5% would be dispersed into three categories.
0.3% would be given to improve public safety in Tempe's parks, neighborhoods and public spaces. The money would go toward funding operations and services for Tempe police and fire departments, safety and security programs, and crime prevention.
0.1% would be dedicated to the improvement and operation of Tempe's public transportation system, including the light rail and Orbit bus system. It would also include pedestrian and bicycle infrastructure.
Shawn Swisher, a Tempe resident and architect, said Tempe relies on federal funding, and many projects require matched funding from the city in order to receive grants.
One of these projects would be a bicycle and pedestrian bridge over Tempe Town Lake located west of McClintock, connecting the North and South Bank paths along the lake.
"That bridge is partially funded by federal grants; they're funded in part, and we match those grants," Swisher said. "If we don't match them, that funding goes away."
0.1% would go towards expanding and strengthening early childhood care and preschool education.
The funding would help to support programs such as Tempe PRE, a city-run preschool program that offers reduced tuition for families.
Access to this program would first be given to qualified Tempe residents, then employees of the City of Tempe and then to non-residents who are employed by Tempe-based businesses.
Gail LaGrander, a Tempe resident who attended the informational meeting, said the proposition was rolled out after just two public hearings and that community members' voices are not being heard.
"We know what we need where we live," LaGrander said. "If Tempe officials were to start over and truly listen to the voices of its constituents, we can then collaboratively address the budget deficit and fund the genuine human needs prioritized by Tempe residents."
Tempe residents will decide on the sales tax increase on Nov. 3. If approved, the new tax rates would be effective Jan. 1, 2027.
Edited by Andi Ruiz, Alan Deutschendorf III and Sophia Keeling.
Reach the reporter at isiedare@asu.edu.
Like The State Press on Facebook and follow @statepress on X.
Imogen Siedare is a part-time reporter with The State Press. This is her first semester with The State Press. Imogen is a Junior studying Journalism and Political Science.
