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Tax Proposal

Tempe council votes to send new tax plan for resident vote

The Tempe City Council voted recently to send a proposed 0.5% tax increase to Tempe voters on Nov. 3. The tax will affect all non-grocery food items and will help contribute to public safety, public transportation and Tempe PRE, the city’s discounted child care program.

The breakdown would give 0.3% to public safety measures like police and fire personnel and 0.1% to public transit like the light rail and Orbit buses that have stops across the city. The final 0.1% would go to Tempe PRE for expanded access to child care. 

Tempe has over 7,000 children under the age of 5 and an estimated 1,900 in need of daily child care.

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Tax Proposal

Tempe council votes to send new tax plan for resident vote

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The Tempe City Council voted recently to send a proposed 0.5% tax increase to Tempe voters on Nov. 3. The tax will affect all non-grocery food items and will help contribute to public safety, public transportation and Tempe PRE, the city’s discounted child care program.

The breakdown would give 0.3% to public safety measures like police and fire personnel and 0.1% to public transit like the light rail and Orbit buses that have stops across the city. The final 0.1% would go to Tempe PRE for expanded access to child care. 

Tempe has over 7,000 children under the age of 5 and an estimated 1,900 in need of daily child care.

Councilmember Randy Keating said at the May 14 meeting that residents with children who are living below the federal poverty level would be first eligible for Tempe PRE and that the growth could not only help individuals but also encourage new businesses with the expansion of services.

“This would be very helpful for the future of economic development in the future. We attract a lot of new employers and this is another way we can use it to sell Tempe,” Keating said.  

The deputy city manager, Lisette Camacho, said the grocery tax will remain at 1.8% in an effort not to burden residents with increased costs for essential items. The tax aims to target Tempe’s tourists and nonresident spending.

Tempe PRE is available to Tempe residents, Tempe teachers, city staff and business owners and those who work in Tempe. Fully funded tuition is available on a lottery system, and others may qualify for half off tuition.

“We cannot achieve this model without the partnership of local child care providers to make sure the quality rating is there and that businesses can improve to qualify and help more parents,” said city Health and Human Services Director Tim Burch.

Some Tempe residents were in support as they saw a need for expanded child care services.

Chelsie Bruggeman, founder of MOMentum, a Tempe mom and female leadership company, attended the meeting virtually to say she was proud of the city for considering preschool and how it impacts mothers in leadership positions.

“I’m usually against taxes, and I am against regressive taxes but this plays such an important role in the lives of families and women in leadership positions,” she said.

Others saw this as an internal matter and that the city could make cuts without raising taxes.

“This budget crunch is the perfect moment to do what every responsible household and business does and go line by line to eliminate waste, set clear priorities and come out stronger on the other side,” said resident Joe Forte.

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