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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 3.0%:
In addition to the privilege tax, an additional 3.0% transient tax is due on income from
charges for lodging to any transient. Eighty percent (80%) of the transient tax
revenues are used for hospitality development, visitor related capital projects and
visitor research.