Council to vote on whether to bring public safety, transportation and PreK education sales tax to November ballotdetail

May 1, 2026

Tempe, AZ - The Tempe City Council will vote on May 14 to put a 0.5% sales tax on the ballot. Funding would:

• Improve emergency response times
• Enhance city-funded preschool education
• Protect community parks
• Stabilize the City's budget

The proposed sales tax would consist of a 0.3% public safety, 0.1% transportation and 0.1% preschool education sales tax. The effective increase would be $.50 when someone spends $100 in Tempe, or about the cost of a cup of coffee when spread across a week's purchases. Groceries and home-prepared food items will be exempt from the tax.

The proposed Nov. 3 ballot measure would replace funding stripped from the budget by the state. This revenue would also stabilize funding for public safety,add funding for long-awaited transportation needs, and create additional opportunities for free and reduced rate Pre-K education for Tempe families.

No Arizona city currently has a specific municipal sales tax dedicated solely to funding preschool education. Tempe offers Tempe PRE, a free and reduced cost preschool program that can accommodate about 200 of Tempe's more than 3,000 3-and-4 year-olds. The sales tax would expand the program's capacity.

What is at stake?
Without additional revenue, the City will face difficult choices, including fewer police officers and firefighters, which could slow emergency response times and reverse the progress being made on lowering Tempe's crime rate. Ramifications could mean reductions in transportation services, scaling back community programs like Tempe PRE and shortening library and community center hours.

The permanent gap in the City's revenue was created by the state's elimination of the residential rental tax, along with reductions in shared revenues.

These cuts include reductions in the General Fund, Arts and Culture Fund and Transit Fund. In addition, the incorporation of San Tan Valley is expected to further reduce state shared revenues by approximately $1.6 million, for a total of $25.7 million.

Neighboring cities, including Phoenix and Gilbert, also increased their sales taxes by 0.5% in 2025, with Phoenix attributing their ask to the removal of the rental tax by the Arizona State Legislature.

Watch staff presentations and Council discussion from the April 30 Tempe City Council Regular Meeting