Politics
Tucson Proposition 405 Sales Tax Measure: Projected Changes to Household Costs and Sun Tran Service
The half-cent sales tax increase on the November ballot would add an estimated $104 annually to the average Tucson household budget while directing new revenue to bus route extensions and vehicle purchases.
How we reported this
Tucson voters will decide on Proposition 405 in November, a measure that would raise the city sales tax rate from 8.7 percent to 9.2 percent starting January 2027. The change would apply to most retail purchases made inside city limits and affect the roughly 542,000 residents counted in the 2024 census.
The proposal follows a 2025 city finance department report that identified a $19 million shortfall in the Sun Tran operating budget for the current fiscal year. City documents state the additional revenue would fund 12 new bus routes and the purchase of 45 compressed natural gas vehicles over five years.
Direct Effects on Daily Spending and Travel
A household with $35,000 in annual taxable spending would pay an extra $175 per year under the rate change. Residents who use Sun Tran for commutes to the University of Arizona or the Tucson Medical Center could see added service on routes 8 and 15, which currently run every 30 minutes during peak hours. Local advocates note that the extra tax would appear on receipts at stores along Fourth Avenue and in the El Con Mall area.
City budget projections attached to the proposition estimate the measure would generate $28 million in its first full year. That figure rests on 2024 sales tax collections of $112 million reported by the Arizona Department of Revenue for Tucson. The same documents list $9 million for new bus purchases and $7 million for route expansions in year one.
If the measure passes, the Tucson City Clerk’s office would begin collecting the higher rate on January 1, 2027. Sun Tran officials have stated they would issue a service plan update by March 2027 that lists the new routes and schedules. Residents who do not use transit would still pay the tax on purchases but would see no direct change in bus availability.