The city of Tempe is facing a roughly $25 million shortfall. At its Thursday meeting, the City Council decided it will vote later this month to put a sales tax increase on the November ballot.
The proposed half-percent sales tax measure would be placed on the Nov. 3 ballot. This proposal is intended to make up for state budget cuts and stabilize funding for several key city services.
According to a city statement, the effective increase would amount to 50 cents for every $100 spent in Tempe. Groceries will be exempt from the tax.
Tempe said without this tax measure, the city could lose funding for emergency response and public safety.
It adds that the budget deficit is due to the elimination of residential rental tax across the state.
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