Notice of Proposed Tax Increase - Nov. 6, 2018 Election

(Election Question 1: November 6, 2018)
In accordance with A.R.S. § 9-499.15, public notice is hereby given that if the majority of qualified City of Scottsdale voters approve Election Question 1 (see below) at the November 6, 2018 General/Special Election, the Scottsdale City Council may consider adopting an ordinance to implement the temporary transaction privilege and use tax rate increase at a meeting in the City Hall Kiva, 3939 N. Drinkwater Blvd., Scottsdale, Arizona, at 5 p.m. on November 26, 2018, but no sooner than 60 days after the posting date of this notice. (Please note that the date was changed from Nov. 27 to Nov. 26 on Sept. 19)

Election Question 1 asks qualified voters whether the City Council should be authorized to increase the rate of transaction privilege and use taxes in the City by 0.10 percent (0.10%) for a period of ten (10) years to provide funds for transportation improvement projects.

At its May 1, 2018 and previous meetings, the City Council discussed the need to fund additional transportation projects, especially those projects in the Arterial Life Cycle Program (ALCP) which are eligible for 70 percent matching dollars. A countywide sales tax fund (to which Scottsdale taxpayers have already contributed) supplies the matching dollars if the City pays 30 percent of project costs. So, each $1 the City spends on eligible projects results in a total project investment of $3.33. If the City does not fund Scottsdale’s local portion, approximately $170 million of countywide sales tax dollars previously designated for Scottsdale projects would be made available for projects in other communities beginning in 2020.

If the voters approve the rate increase, it will change the City’s transaction privilege tax rate to 1.75% and the use tax rate to 1.55%. The attached schedule illustrates the impact of the rate change by category. If approved, the City anticipates the tax rate increase will be effective on February 1, 2019.

Proposed Tax  Rate Change (pdf)

Posted: Sept. 10, 2018

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