TEMPE, Ariz. — Tempe voters will decide in November whether to approve a sales tax increase that supporters say is needed to replace lost revenue — but opponents call the wrong solution at the wrong time.
Proposition 424 would raise Tempe's sales tax by five-tenths of a percent, from 1.8% to 2.3%, generating an estimated $50 million. That works out to an extra 50 cents for every $100 spent.
Three-tenths of a percent would fund police, fire and emergency operations, with one-tenth of a percent each for transit and child care services.
The measure is designed in part to fill a budget hole created when state lawmakers abolished rental taxes — a cut that cost Tempe $24 million a year.
Tom Duensing, chair of the Tempe Forward PAC, said the tax is fair because anyone who spends money in the city contributes, not just residents.
"It's a solution to replace that revenue, and it is an equitable way to replace that revenue," Duensing said.
But opponents argue the tax is excessive, as it would pull in twice as much as the gap left by the rental tax ban.
Arizona state Sen. Mitzi Epstein, representing Legislative District 12--including South Tempe residents--chairs the Tempe Coalition for Tax Fairness. She called the proposal a regressive tax that unfairly burdens working families.
"[It's an] especially bad time for families who are trying to pay for basic living," Epstein said. "Electricity, rent--these are expensive, and this is going to be worse…it's so expensive just to pay to put dinner on your table right now."
Epstein noted she has a strong relationship with members of the Tempe City Council, but said she would have rather seen city leaders and staff better engage with the community before putting the measure on the ballot to hear what funding the community would like to prioritize.
"The transparency is missing," the senator said. "At least, they could have broken it up into three different questions," so that residents could vote whether to fund each aspect as individual measures.
Duensing warned of consequences if the measure fails, including the potential for worse 911 response times, suffering services for low-income residents and homeless individuals, and hits to park and library operating hours. He also touted improvements to each of those as justifications for the revenue generated in excess of the gap left by the rental tax ban.
The city has held informational meetings, with two more in-person meetings scheduled for the evenings of Sept. 15 and Sept. 29.
Tempe voters will decide on the proposal on Nov. 3.
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