In March, Tempe voters will be asked to vote on Proposition 400, which would slightly increase the city’s hospitality tax, also known as the “bed tax,” charged only on hotel rooms.
Here’s why a “YES” vote makes sense for Tempe’s future!
Top Reasons to Support Prop 400
Key Questions and Answers
Thumbs Up for Tempe Tourism Video
Prop 400 Supporters
Important Resources
Top Reasons to Support Prop 400
- For every $1 invested in tourism promotion, $34 is returned to the community.
- All of the $1.5 million expected to be generated annually will be used to attract additional tourists or support tourism activities.
- Currently, tourism in Tempe generates more than $100 million annually for our economy. It’s critical that we sustain that level of success for city tax revenues and private-sector jobs.
- Revenue generated by tourists creates jobs and provides funds to the City of Tempe which lowers the tax burden on residents.
- Tempe's hotels are filled with visitors from other cities and states. The tax will be paid only by those who stay in Tempe's hotels.
- At 5 percent, Tempe’s new rate will remain lower than the national average, lower than Tucson’s (6 percent) and at the same level that Scottsdale is proposing.
- Tempe is an “All-American City" and the best community in the Valley. We need to keep it that way. This is an effective and appropriate way to encourage more investment in tourism and all of its benefits.
- The hoteliers say so! Proposition 400 has very strong support throughout the business community. Supporters include the Tempe Convention and Visitors Bureau, the Tempe Chamber of Commerce, the Downtown Tempe Community, the Mayor, all members of the City Council, Tempe hotels and other leading businesses such as Monti’s La Casa Vieja, Arizona Mills and Tempe Marketplace.
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Key Questions and Answers
What is Proposition 400 on the March 9 Tempe ballot?
- Prop. 400 seeks to raise the tax charged on hotel rooms in Tempe from 3 cents to 5 cents on the dollar.
How will this help Tempe?
- All of the new revenue collected will be used to attract additional tourists or support tourism activities. These activities include advertisements in key cold-weather markets or support of major events such as the P.F. Chang's Rock 'n' Roll Arizona Marathon & 1/2 Marathon, the Insight Bowl, or many other Tempe tourism events. Research shows that each $1 invested in tourism returns $34 to the community. More tourism represents more money for Tempe businesses, more tourism-related jobs in Tempe, and more money to the City which lowers the tax burden on residents.
Who pays the hotel tax?
- Tempe has long been a destination for travelers and our hotels are filled with visitors from other cities and states. The tax will be paid only by those who stay in Tempe hotels.
When Proposition 400 passes, how will Tempe’s hotel tax compare to other cities?
- At 5 percent, it will still be lower than the national average, lower than Tucson’s (6 percent) and lower than other Southern Arizona cities. In addition, Scottsdale is also seeking to increase its rate from 3 to 5 percent.
Who supports Proposition 400?
- Prop 400 has very strong support throughout the business community. Supporters include the Tempe Convention and Visitors Bureau, the Tempe Chamber of Commerce, the Downtown Tempe Community, the Mayor, all members of the City Council, Tempe hotels and other businesses such as Monti’s La Casa Vieja, Arizona Mills and Tempe Marketplace.
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Watch our "Thumbs Up for Tempe Tourism" video.
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Prop 400 Supporters
- Mayor Hugh Hallman
- Vice Mayor Shana Ellis
- Councilman Ben Arredondo
- Councilman Mark Mitchell
- Councilman Joel Navarro
- Councilwoman Onnie Shekerjian
- Councilman Corey Woods
- Former Mayor Rudy Campbell
- Former Mayor Neil Guiliano
- Michael Monti and Eddie Goitia
- Downtown Tempe Community
- P.F. Chang’s Rock ‘n’ Roll Arizona Marathon & ½ Marathon
- Circle K Tempe Music Festival
- Tempe Mission Palms Hotel
- AIR Marketing
- Twin Palms Hotel
- Four Points Sheraton
- Fiesta Resort Conference Center
- The Buttes, A Marriott Resort
- Arizona Mills
- Tempe Chamber of Commerce
- Tempe Marketplace
- Tempe Firefighters
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Important Resources
Paid for by Tourism Helps Tempe. Major funding provided by the Tempe CVB, PMT, and American Outdoor.
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