Just three weeks out from election day, Tempe residents will decide to approve of a 0.05% sales tax increase in non-grocery goods. But some Tempe business owners are conflicted about the ballot measure as a tax increase could push their business off of Mill Avenue.
Cassidy Lujan, owner of The Plant Mill in downtown Tempe, is a Scottsdale resident and has considered moving the business to Old Town Scottsdale for cheaper rent and higher foot traffic.
“It sort of feels like giving the people a little bit of what they need but I think a lot of people in Tempe are tired of giving more money to public service and then not having a better understanding of how that money’s actually used,” Lujan said.
Other businesses have considered a move as well to downtown areas that have free and subsidized parking, less nightlife activity and other benefits for small business owners.
Kira Gullion, owner of the Lizard Head Trading Co. next door to The Plant Mill, has similar concerns. She says she’s considering moving the business to Mesa to help curb rising costs.
“I’ve already considered moving and this would give me another reason to do so,” Gullion said.
In a debate on the issue with state Sen. Mitzi Epstein, Tempe Mayor Corey Woods and president of the Tempe Forward PAC Tom Duensing, the three disagreed on how it would impact consumers.
Duensing claims that a household income of $93,000 would only spend $13 a year toward the tax. He also claimed that the tax was not “regressive” since it impacted everyone who bought goods in Tempe.
Epstein pushed back.
“It’s this moment in America when we need to say no, gosh darn it. I am not going to vote for even one more unfair regressive sales tax,” Epstein said.
According to the U.S. Census Bureau, Tempe’s median household income is around $78,000, and more than 15% of residents live at or below the poverty line.
But supporters argue that the benefits could help those in need.
Part of the sales tax would fund TempePRE, the city’s subsidized preschool program that is currently only eligible to Tempe residents who qualify by income. Should the proposition pass, the service could become available to Tempe business owners and people who work in Tempe regardless of residence.
Lujan and Gullion are not Tempe residents but could qualify under these proposed changes.
Lujan said that as the proposition is written to include transportation, preschool and public safety, it creates a distraction for voters who may oppose one item but support another.
“Asking for more money with a discrepancy about how funds are used feels icky,” she said.
Ballots have been sent to voters on the early voting list and polling places across the Valley are open for voters. Voters are encouraged to mail their ballots no later than Oct. 27 and all in-person voters must be in line to vote by 7 p.m. on Nov. 3.
Should the tax pass it would go into effect beginning in 2027.
To voice your opinion on this story, connect with us at AzOpinions@iniusa.org.
Madeline Bates joined Independent Newsmedia in 2025 as a Phoenix/Tempe reporter. Before graduating college, she spent a semester in Washington as a Congressional reporter in the first 100 days of the second Trump administration. But local news is where her heart is. She is excited to be in Phoenix full time and exploring new parts of the city (as long as they have AC).
Community: After living in East Phoenix for two years, she fell in love with Paradise Valley, Mesa, Tempe, and everywhere in between. She recently discovered the beauty of the South Mountain Reserve and hopes to continue exploring should the weather comply.
Education: Madeline has a degree in Journalism and Mass Communications from Arizona State University’s Walter Cronkite School of Journalism and a certificate in Political History and Leadership.
Random Fact: She is a self-taught nail tech. No, she cannot do your nails.
Hobbies: Hiking (when its not 100 degrees), fiction writing, cooking, baking and trying new coffee shops.
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