Tempe Voters to Decide Sales Tax Hike November 3

Proposition 424 seeks to raise $50 million annually to address city budget gaps from rental tax changes.

Updated on Oct. 21, 2026 in City Hall

Tempe Voters to Decide Sales Tax Hike November 3

Live Poll

Do you support increasing local sales taxes to fund additional public safety and city services?

Tempe voters will cast ballots on November 3, 2026, regarding a proposed 0.5% city sales tax increase. The measure aims to generate $50 million annually to offset revenue losses from state-level rental tax repeals.

Why it matters

The tax hike is designed to fill a $24 million annual budget hole created by state lawmakers eliminating rental taxes. It aims to stabilize funding for essential city services like public safety, transit, and child care programs.

Proposition 424 introduces a 0.5% tax increase, costing 0.50 cents per $100 spent while exempting groceries. Funds are split 0.3% for public safety, 0.1% for transit, and 0.1% for child care.

The players

Linda Arters

She is a local resident who requested 911 response data from the city earlier this year.

The details

The proposed measure adds to the current 1.8% city sales tax to address a $24 million shortfall. While the tax applies broadly, residents will be exempt from paying it on groceries purchased for home use.

May 2026: Linda Arters requested 911 response data from the city.
November 3, 2026: Tempe voters cast ballots on Proposition 424.

Political Context

This proposal reflects a growing trend of cities seeking local revenue to counter state-level preemption laws. Opponents typically argue that such increases disproportionately burden low-income households and demand greater scrutiny of existing municipal spending efficiencies.

If passed, the 0.5% increase will raise the total city sales tax rate, directly impacting the cost of taxable retail goods for households. Residents should account for this potential change in their monthly budgets and future spending.

The takeaway

Voters should review the specific allocation of funds for transit and public safety before casting their ballots. Those concerned about costs can prioritize essential tax-exempt items like groceries to mitigate the impact of the potential increase.