Tempe could be headed for a high-stakes tax fight this fall, as the City Council considers asking voters to approve a half-cent (0.5%) sales tax bump in November. City leaders say the move is aimed at shoring up public safety response, keeping transportation service from shrinking and growing the city’s preschool program at a time when the budget is under serious pressure. Councilmembers are expected to take a procedural vote in mid-May on whether to send the question to the ballot, and officials are already warning that without new revenue, some tough cuts will be on the table.
According to Arizona’s Family, the Tempe City Council is set to vote on Thursday, May 14 on whether to place the 0.5% sales tax question before voters this November. The plan carves up the new revenue so that 60% would go to public safety, 20% to transportation and 20% to Tempe PRE, the city’s preschool program. Supporters told the outlet they believe the money would improve emergency response times, expand pre-K seats, protect parks and help stabilize the city’s overall budget.
Tempe PRE And The Budget Squeeze
Tempe PRE, the city’s full-day preschool program, runs neighborhood classrooms and offers free or reduced-cost spots to qualifying families, per the City of Tempe. City officials say revenues have been pinched by cuts to shared state distributions and by the end of taxation on long-term residential rentals. The city’s tax guidance notes that residential rentals of 30 days or more are no longer taxable as of Jan. 1, 2025. Without a new revenue stream, officials have warned they could be forced to reduce staffing, shorten library and community center hours and cut transportation services.
Other Valley Cities Have Already Raised Taxes
Tempe’s proposal comes after similar moves around the Valley. The City of Phoenix approved a 0.5% increase to its transaction-privilege (sales) tax last year, and the Town of Gilbert signed off on sales-tax rate hikes that took effect at the start of 2025. Those votes highlight how cities across the Valley have leaned on local sales taxes in recent budget cycles to keep fire, public-safety and infrastructure funding from falling behind.
The council’s mid-May vote is a procedural step to decide whether the question goes in front of voters. If the measure is approved for the ballot, Tempe residents would see it in November. National election calendars list the 2026 general election on Tuesday, Nov. 3, 2026, which is when municipal ballot questions of this kind would typically appear. In the lead-up, the city and outside groups on both sides are likely to hold public meetings and roll out fiscal estimates and talking points for voters to consider…