Tempe’s 1.8% Retail Sales Tax Rate Poised to Hold as Proposition 424 Trails

inbusinessPHX.com

Nearly 60% of Tempe voters who weighed in on Proposition 424 voted against the proposed half-cent sales tax increase, according to unofficial results from Maricopa County Elections. The Nov. 7 tally showed 30,337 votes against the measure, or 59.69%, and 20,489 in favor, or 40.31%.

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If the results hold, Tempe’s city sales tax rate on retail purchases will stay at 1.8%. The proposal would have raised the city portion to 2.3%, adding 50 cents to every $100 in taxable purchases. Groceries for home consumption would have been exempt from the increase.

The city would have directed 60% of the new revenue to public safety, including police officers, firefighters, park rangers and street and park lighting. The rest would have been split evenly between transportation projects, including transit and improvements for cyclists and pedestrians, and early childhood care and preschool programs.

The Tempe City Council is scheduled to canvass the results at a special meeting Nov. 23 at 4 p.m. at Tempe City Hall.