Proposition 424 is a measure referred to voters by the Tempe City Council. If approved, it would establish a new 0.5% transaction privilege (sales) tax and use tax, excluding the sales tax on food for home consumption purchased from stores such as grocery and convenience stores.

The proposed tax revenue would be allocated as follows:

• 0.3% for public safety and programs to strengthen the overall security of Tempe's parks and neighborhoods.
• 0.1% for the operation and improvement of Tempe's public transit system, including pedestrian and bicycle infrastructure.
• 0.1% for early childhood care and preschool education programs. Program eligibility and enrollment priority would be provided first to qualified Tempe residents, followed by teachers employed by Tempe school districts, City of Tempe employees, and individuals employed by Tempe-based businesses.

If approved by voters, Tempe's sales tax rate would increase from 1.8% to 2.3% beginning January 1, 2027. The proposed increase would not apply to food for home consumption purchased from stores such as grocery and convenience stores; those purchases would continue to be taxed at the current 1.8% rate. 

The proposed 0.5% tax would add an estimated $0.05 in tax for every $10 spent, or $0.50 for every $100 spent on taxable purchases.

If approved by voters, the proposed tax revenue could be used to support City services and programs in public safety, transportation, and early childhood care and preschool education.

The 0.3% revenue allocated to public safety could be used for:

• Additional police officers, firefighters, paramedics, community responders, and park rangers
• Emergency preparedness, crime prevention, and neighborhood safety programs
• Environmental safety projects, such as additional street and park lighting
•  Equipment and vehicles for police officers, firefighters, 911 dispatchers, and park rangers

The 0.1% revenue allocated for the operation and improvement of Tempe's public transit system could be used for:

• Operating and maintaining Tempe's public transit services and programs
• Extending the Tempe Streetcar east of Mill Avenue to Tempe Marketplace and into Mesa along Rio Salado Parkway to Dobson Road and Main Street
• Bicycle and pedestrian infrastructure projects
• Bus shelters and transit area improvements
• Funding associated with the Town Lake Pedestrian Bridge project west of McClintock Drive

The 0.1% revenue allocated for early childhood care and preschool education could be used for:

• Early childhood care programs for children from birth through age 5
• Increasing the number of Tempe PRE classrooms
• Scholarship and partnership programs with qualifying preschool and childcare providers
• Free and reduced tuition programs, with eligibility and priority provided first to qualified Tempe residents, followed by teachers employed by Tempe school districts, City of Tempe employees, and individuals employed by Tempe-based businesses.