Tempe voters will decide on a proposed 0.5% sales-tax measure Nov. 3

Tempe voters will decide Nov. 3, 2026, whether to approve Proposition 424, a proposed new transaction privilege and use tax of 0.5%. If approved, the tax would take effect Jan. 1, 2027.

The measure is now in the voter-information and ballot-argument phase. It would not apply to the privilege tax on food for home consumption under the official ballot language. For purchases subject to the proposed tax, the increase would be one-half of one percentage point, although the exact dollar effect would depend on the purchase amount and applicable tax rules.

What Proposition 424 would fund

The official measure divides the proposed tax among three categories:

• 0.3% for public safety and security, including infrastructure, operations and services for police, fire, emergency operations, safety and security programs, and crime prevention through environmental design.
• 0.1% for improving and operating Tempe’s public transit system and multimodal projects, including pedestrian and bicycle infrastructure.
• 0.1% for early-childhood care and preschool education, with access prioritized for qualified Tempe residents, followed by teachers working in Tempe school districts, City of Tempe employees and nonresidents employed by Tempe-based businesses.

Resolution No. R2026.48 says Tempe’s current voter-authorized transaction privilege and use tax rate is 1.8%. If Proposition 424 passes, the resolution says the combined rate would rise to 2.3% beginning Jan. 1, 2027.

Why the measure is on the ballot

The Tempe City Council adopted Resolution No. R2026.48 on May 14, 2026, by a 6-1 vote, calling the special election and submitting Proposition 424 to city voters. The council’s action placed the proposal on the ballot; it did not enact the tax.

In its June 2026 newsletter, Tempe said state legislative changes reduced annual city revenue by about $25.7 million and contributed to a budget deficit. The city has presented the proposed revenue as support for public safety, transportation, early-childhood programs and budget stability.

AZFamily reported that the proposal drew pushback from some residents, including concerns about the tax increase and how public-safety funding could be used. Those comments are part of the ballot debate and do not establish what services, staffing levels or project results would follow if voters approve the measure.

What voters can review now

Arguments for and against Proposition 424 must be received by the City Clerk no later than 5 p.m. Arizona time on Wednesday, Aug. 5, 2026. The city says each argument may not exceed 300 words and requires a $100 filing deposit. Arguments that meet the requirements are intended for publication in the Nov. 3 special-election publicity pamphlet.

The city’s official voter-information pages identify Proposition 424 as the subject of the Tuesday, Nov. 3, 2026, special election. A publicity pamphlet is scheduled to be mailed to Tempe households with registered voters beginning Sept. 29, 2026.

A yes vote would approve the proposed 0.5% transaction privilege and use tax, excluding the privilege tax on food for home consumption, effective Jan. 1, 2027. A no vote would reject the proposal. The final decision belongs to Tempe voters.

Sources

• City of Tempe — Resolution No. R2026.48, Official Ballot Proposition 424
• AZFamily — Tempe Council approves ballot measure to raise sales tax by 0.5%