Arizona law requires that government entities have standing links on their website homepages to provide information about proposed changes to taxes and fees. When Tempe has such a change to report, it will be posted to this page.
Important Notice Regarding City of Tempe Sales Tax Rate Change Effective July 1, 2014
The City of Tempe reminds local businesses to re-program their computer equipment to reflect a lower city sales tax rate of 1.8 percent beginning July 1.
The upcoming 2014-15 fiscal year starts July 1 and it marks the end of the additional sales tax approved by voters and promised by the City Council to expire in 2014. Those funds contributed to the General Fund – the city’s biggest operating fund – for four years during the worst of the latest economic recession and helped the city avoid more extensive layoffs and service cuts. Tempe voters passed Proposition 401 during the May 18, 2010, General Election, allowing for a four-year, two-tenths of a cent sales tax increase that enabled the city to preserve essential services such as public safety and recreation programs. Effective July 1, 2010, the city portion of sales tax went from 1.8 percent to 2 percent. On July 1, 2014, that rate will go back to 1.8 percent.
Local businesses should reflect the lower tax rate starting July 1 in order to avoid later issues.