Tempe voters rejected Proposition 424, defeating a proposed half-cent sales tax increase that city leaders said would support public safety, transportation and early-childhood programs while helping close a $25.7 million revenue gap.
The latest unofficial results from Maricopa County show 30,337 votes against the measure, or 59.7%, and 20,489 in favor, or 40.3%. The City Council is scheduled to canvass the results Nov. 23.
The measure would have raised Tempe’s city retail sales tax from 1.8% to 2.3%, adding 50 cents to a $100 taxable purchase. Groceries for home consumption would have remained exempt. City estimates said the tax could generate about $50 million annually.
Under the ballot plan, 60% of proceeds would have gone to public safety, including police officers, firefighters, park rangers and lighting. Transportation and multimodal projects would have received 20%, with the remaining 20% supporting early-childhood care and preschool education.
Opponents argued the tax was regressive, lacked enough spending detail and would raise nearly twice the city’s projected shortfall. Tempe business owner Gabe Hagen told ABC15 the proposal felt like a “blank check” and urged city leaders to return with a more specific plan.
Supporters warned failure could lead to slower emergency response and cuts to public services. The Yes on 424 campaign, backed by police and firefighter unions, conceded and said the financial pressures remain.
Mayor Corey Woods said filling the gap “is not going to be easy” and that the city will need to “do more with less.” The defeat leaves Tempe’s city retail sales tax at 1.8%, with officials expected to consider spending reductions, alternative revenue, and service changes during upcoming budget talks.
