Tempe Voters Will Consider Sales Tax Increase in November
The proposed measure seeks to generate $50 million annually to address city budget deficits and fund essential services.
Updated on Oct. 13, 2026 in City Hall
Live Poll
Should Tempe residents vote in favor of increasing the city sales tax for public services?
Tempe voters will head to the polls in November 2026 to decide on a sales tax increase designed to offset $24 million in lost rental tax revenue. The measure, which exempts grocery purchases, aims to address a projected $20 million in budget cuts.
Why it matters
The tax hike is a response to the Arizona Legislature banning local rental taxes, which forced the city to find new revenue streams to maintain public services. Failure to pass the measure could result in significant budgetary reductions for local operations.
The proposal would increase the city sales tax by 0.5%, adding 50 cents to every $100 spent on taxable goods. Revenue allocations include 60% for public safety and 20% each for public transit and early childhood care.
The players
Tempe City Council
This is the governing body for the city of Tempe responsible for legislative decisions and budgetary oversight.
The details
Six of seven Tempe city councilmembers support the measure, which was officially referred to the ballot in May 2026. The tax increase will not apply to grocery purchases, providing some relief for household essentials while aiming to stabilize the municipal budget.
Timeline
In May 2026, the city council referred the tax measure to the November ballot.
Election Day for the tax measure takes place in November 2026.
Early voting concludes on November 3, 2026.
Political Context
Opponents of the tax increase argue that the city should prioritize spending cuts before asking residents to pay higher prices for goods. Critics express concern regarding the cumulative impact of increased municipal taxes on the local cost of living.
If the measure passes, shoppers in Tempe will pay 0.5% more in sales tax on non-grocery items starting after the election. Residents should prepare for the possibility of service reductions if the ballot initiative fails to gain voter approval.
The takeaway
Residents should review their ballots to understand how the proposed tax changes will affect their local tax burden. Implementing long-term budget strategies remains a critical challenge for the city as it navigates the impact of legislative changes.
Further reading
For more information on local legislation, visit the City Hall section.
Live Poll
Should Tempe residents vote in favor of increasing the city sales tax for public services?
