Transaction Privilege (Sales) Tax:
The City of Scottsdale imposes a 1.65% Privilege "sales" tax. Privilege tax revenues are used to finance the cost of various City services including but not limited to police, fire, parks, libraries, and streets. One eighth (1/8) of the privilege tax revenue is used specifically for transportation purposes, and 1/5 is for purchasing land for the McDowell Sonoran Preserve in the McDowell Mountains and the surrounding Sonoran Desert, and 1/16 is for public safety.
Use Tax Rate 1.45%:
The City of Scottsdale's Use tax rate is 1.45%. Use tax is imposed on the purchaser for the privilege of using, consuming or storing tangible personal property within the city limits. The use tax provides an indirect benefit to retailers located in Scottsdale because it removes incentives for customers to shop outside the city in order to avoid paying city tax. Approximately one fourth (1/4) of the tax is earmarked for the McDowell Sonoran Preserve in the McDowell Mountains and the surrounding Sonoran Desert and 1/14 for public safety.
Transient Tax Rate 5.0%:
In addition to the privilege tax, an additional 5.0% transient tax is due on income from charges for lodging to any transient. Fifty percent (50%) of the transient tax revenues are used for destination marketing to promote tourism and fifty percent (50%) are used for tourism-related event support, tourism research, tourism-related capital projects, and other eligible uses as determined by City ordinance or State law.