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Transaction Privilege (Sales) & Use Tax License

The City of Scottsdale imposes a 1.65% privilege tax and a 1.45% use tax. Businesses are legally responsible for remitting these taxes, not the customer. Businesses are permitted to pass taxes through to and collect them from customers. A transaction privilege and use tax license is required to engage or continue in business. It is the business owner's responsibility to make application and obtain a license before starting business.

Transaction Privilege (Sales) & Use Tax License Application
(PDF / 129KB / 3pgs) - Fillable form

Application Process

  1. To apply for a license, complete an application online. Once completed, print and return the application with a check for the non-refundable $12 application fee and applicable license fee as listed below. You must apply for a license before you open for business.
  2. Please check with Development Services to be sure that your business location is zoned for your business activity.  You can reach them at 480-312-2500.
  3. Most fees are non-refundable.

 

Arizona State law now requires that any individual/sole proprietor applying (in person) for a license must present one of the following documents indicating that the individual is authorized by federal law to work in the United States:

 

• An Arizona driver license issued after 1996 or an Arizona non-operating identification license.

• A driver license issued by a state that verifies lawful presence in the U.S. (Licenses from HI, IL, NM, UT, & WA do not meet the requirement)

• A birth certificate or delayed birth certificate issued in any state, territory or possession of the U.S.

• A U.S. certificate of birth abroad.

• A U.S. passport.

• A foreign passport with a U.S. work visa.

(See a complete list of acceptable documents here.)

If you are an individual/sole proprietor applying (by mail), you must submit a certified copy of your birth certificate and a legible copy of your driver’s license with the application.*

Separate License

Each business is required to have a separate license for each City of Scottsdale location or name.

Annual License Fee

Business Start Date License fee License fee if paying after business start date
January 1 to March 31 $50.00 US $75.00 US
April 1 to June 30 $37.50 US $56.25 US
July 1 to September 30 $25.00 US $37.50 US
October 1 to December 31 $12.50 US $ 18.75 US

Annual license fee imposed for rental of residential real property

Business Start Date License fee per unit License fee if paying after business start date
January 1 to March 31 $2.00 per unit not to exceed $50.00 US $3.00 per unit not to exceed $75.00 US
April 1 to June 30 $1.50 per unit not to exceed $37.50 US $2.25 per unit not to exceed $56.25 US
July 1 to September 30 $1.00 per unit not to exceed $25.00 US $1.50 per unit not to exceed $37.50 US
October 1 to December 31 $.50 per unit not to exceed $12.50 US $.75 per unit not to exceed $18.75 US

Fee due if not paid by the due date

Application Fee $12.00 US
(If fees aren't paid timely a second application fee is required)
PLUS
Annual License Fee  
Residential Rental Property $3.00 US per unit
(150% x $2.00 imposed fee per unit not to exceed $75.00)
Other Businesses $75.00 US
(150% x $50.00 imposed fee)

Transient (Non-permanent) Privilege License

A person engaging in business for a period of 30 consecutive days or less may be issued a transient (non-permanent) privilege license, which shall be valid for only a 30 day period following the application date. The fee for this license is $25.00 US.

Taxable Activities

Gross receipts generated from the following types of business are subject to the City of Scottsdale privilege tax. This summary provides only broad guidelines as to which activities are taxable and is not intended to be a comprehensive list of such activities.

Advertising: Includes advertising by radio, television, direct mail, billboards, or any other means.

Amusements, Exhibitions & Similar Activities: Includes movies, concerts, circuses, sporting events, video games, tennis courts, golf course, etc.

Construction Contracting: Includes developers, speculative builders, general contractors, construction managers and owner-builders.

Job Printing: Includes copying, photo reproductions, engraving, embossing, micrographics, etc

Mining, Timbering & Extraction: Includes mining, smelting or producing minerals; felling, producing or preparing timber; extracting, refining or producing oil or natural gas.

Publishing & Periodical Distribution: Includes newspapers, periodicals, magazines, etc. including advertising and subscription income.

Renting, Leasing, or Licensing for Use of Real Property: Includes rental or lease of any real property, including commercial building(s), apartments, homes or other residential units.

Renting, Leasing, or Licensing for Use of Tangible Personal Property: Includes rental of equipment, automobiles, tools, furniture, etc.

Restaurants & Bars: Includes preparing and serving food or beverages for consumption on or off the premises.

Retail Sales: Includes the sale of any tangible personal property such as food, artwork, cars, furniture, equipment, etc.

Telecommunication Service: Includes telephone, telegraph, cable TV, monitoring security or alarm systems, computer interface, FAX, etc.

Transient Lodging: In addition to the one and sixty-five hundredths percent (1.65%) privilege tax on the rental of real property, there is a five percent (5%) transient lodging tax on any hotel, motel, apartment, or individual charging for lodging space to any person for 30 days or less.

Transporting For Hire: Includes transporting persons or property by railroad; property by aircraft; or oil, natural gas or artificial gas through a pipeline.

Use Tax: Use tax is a one and forty-five hundredths percent (1.45%) tax on the purchase or rental of tangible personal property (such as vehicles, equipment, supplies, etc.) on which an equivalent City tax has not been paid.

Utility Services: Includes providing water, electricity or gas.

Additional Comments

The taxable activities in Scottsdale may be different than the State of Arizona or other municipalities. Please contact the Arizona Department of Revenue at 602-542-4576 or the other cities in which you will be conducting business for additional information.

Property Tax Information

Business Licenses and Permits

Other Information