Phoenix council approves 2.8% sales‑tax rate, 8‑1, after public hearing urges funding for fire and services

The Phoenix City Council voted 8‑1 on March 18 to approve an ordinance amending Chapter 14 of the Phoenix City Code to increase the transaction privilege and use tax (TPT) and use tax from 2.3% to 2.8%, effective July 1, 2025. The council's action followed a public hearing with more than two dozen speakers representing neighborhood groups, business organizations, labor unions and advocacy groups.

Councilmember Glenda Alvaro moved to adopt the ordinance; a second was recorded before the roll call. The clerk's roll call recorded eight votes in favor and one vote opposed (Councilman Waring); the motion passed.

Supporters who spoke during the public hearing urged the council to approve the increase to preserve city services and accelerate reductions in emergency response times. Alisa Lyons of Valley Partnership said development certainty requires a city able to maintain its permitting and service functions and voiced that organization's support. Brian Willingham, president of United Phoenix Firefighters Local 493, urged passage and said firefighters and other first responders deserve the resources to keep residents safe. Anne Ender of Operation Blue Ribbon, business groups and neighborhood leaders also spoke in favor.

Community advocates from Take Back Our Homes, Phoenix Community Alliance, Unite Here Local 11 and Worker Power urged the council to use additional revenue to protect community services and to fund eviction‑prevention and legal assistance (a proposed right‑to‑counsel) in the longer term. Several neighborhood leaders and residents said programs such as gated alleys, pools, libraries and parks improve safety and quality of life and should be preserved.

One speaker expressed opposition, arguing the city has prioritized other projects and that dedicated, immediate funding for the fire department rather than a general fund increase would be preferable. City staff and multiple councilmembers responded during the meeting that the proposed revenue would be used to address fire staffing and operations, homelessness services and to preserve existing programs across districts.

The ordinance title was read into the record before the hearing as "An ordinance relating to privilege and excise taxation, providing an increased tax rate on multiple privilege tax business classifications and the use tax from 2.3 percent to 2.8 percent and establishing an effective date." The council's motion language on the floor was to adopt the ordinance authorizing the Chapter 14 amendment to increase the TPT and use tax to 2.8% effective 07/01/2025.

Councilmembers who spoke during the debate said the proposal was not undertaken lightly and that state actions reducing city revenue left local leaders limited options. Several council members, including Councilwoman Hodge Washington and Councilwoman Guardado, said they would support the measure to maintain service levels and reduce response times.

The vote passed eight to one; the effective date recorded in staff materials is July 1, 2025. Staff and speakers said the City will hold community budget hearings and further council budget decisions in May and June to allocate the new revenue and finalize operating plans.

Ending: The ordinance changes the local tax base and will be implemented July 1, 2025 unless altered by subsequent council action. Staff indicated further budget decisions and program allocations will follow the council's budget timetable in May and June.