Prop 101, the half-cent sales tax increase, goes into effect Saturday.
The increase will raise Tucson's current sales tax from 8.1% to 8.6%.
The city estimates the money will raise $250 million to fund city road repairs and public safety.
However, with this new increase, small business owners are shifting resources to keep their businesses running.
"It can be half-cent sales tax hike, it can be minimum wage, it can be anything," said Nicole Carrillo, owner of Mabel's on 4th. "It's all about just figuring out how to make it all go is what I always say."
Prop 101 (half-cent sales tax) begins tomorrow. One business is handing out flyers to encourage people to shop from small businesses @kgun9 pic.twitter.com/e5b53AM8t5
— Priscilla KGUN9 (@PriscillaCasper) June 30, 2017
Carrillo says to make her business go, she is thankful she hasn't had to raise prices, but her plan of attack is to open a new dog boutique in September down the street.
"I really believe it's like a volume," she said. "The more people I can get to come in and shop, the better again is why I'm contributing to making it more of a draw to come down to 4th Ave. I think we are going to be the last ones standing with Amazon. I think having a really fun tactile delight for all your senses that is what we want... if we want something fast we can just get it on the internet."
She says she is handing out flyers with a map of the local businesses along 4th Ave. to encourage people to shop at small businesses.