Tax Rates
Combined Tax Rate
The combined rate consists of 5.6% for the State, .7% for the County, and 1.75% for the city of Scottsdale for most business activities. See tax rate chart for tax rates for specific business activities.
8.05%
Transaction Privilege (Sales) Tax Rate
The City of Scottsdale imposes a 1.75% Privilege "sales" tax.
More Information1.75%
The City of Scottsdale imposes a 1.75% 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
The City of Scottsdale imposes a 1.55% use tax on items stored or used in the city which have been purchased or rented without a privilege or sales tax equal to the Scottsdale use tax rate.
More Information1.55%
The City of Scottsdale's Use tax rate is 1.55%. 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
In addition to the 1.75% privilege tax on rental of real property, there is a 5.0% transient lodging tax on any hotel, motel, apartment, or individual charging for lodging space to any person for 29 days or less.
More Information5.0%
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.
Business Personal Property Tax
All businesses are assessed tax on personal property.
More InformationAll businesses are assessed tax on personal property. Mobile homes can also be subject to personal property tax. Personal property subject to the tax includes: machinery, equipment, furniture, and other capital items. Businesses are required to complete an annual business property statement (Form DOR 82520). Governmental or charitable organizations may be exempt with the approval of the county assessor. After processing the annual business property statements, and completing the assessment of property to be placed on the personal property tax roll, the Assessor mails a Notice of Value to the Taxpayer. The County Treasurer bills personal property taxes.
Business owners should contact the Maricopa County Assessor at 602-506-3386 for information and to obtain the business property statement.
For additional information regarding personal property tax, contact the Arizona Department of Revenue at:
Phoenix Area: 602-255-2060
Other Arizona Areas: 800-352-4090
Arizona Department of Revenue. Select the "Property Tax Info" link.
Property Tax Rates
Property Tax Rates are per $100 of assessed valuation of the property being taxed.
More Information$0.9071
(combined)
2022/23 Property Tax Rate Calculation
$0.4970 - Primary
$0.4101 - Secondary
$0.9071 - Combined
Additional information about Property Tax and Valuation Relief Programs is available on the Arizona Department of Revenue website.
Reporting & Payments
Learn More (PDF)
Transaction Privilege (Sales) and Use Taxes
In order to engage or continue in business, a Transaction Privilege (Sales) Tax license is required. It is the business owner's responsibility to make an application and obtain a license with the Arizona Department of Revenue. Even if you have no income to report, you must write zero in the appropriate areas, then sign and submit your tax return.
Reporting & Payment Process
The online process is completed using the
www.aztaxes.gov
website.
Steps:
- Apply for a combined Arizona & Scottsdale sales tax license. Be sure to add Scottsdale as a Region Code (SC)
- File & pay sales tax. Be sure to file the return first, then pay the return.
Email sales tax questions or suggestions to BusinessRegulation@ScottsdaleAZ.gov.
Related Forms
Tax Refund Request
Effective July 1, 2019 the Arizona Department of Revenue administers all refund claims for Transaction Privilege (Sales) and Use Taxes for ALL taxing jurisdictions in Arizona. See the instructions at: https://azdor.gov/transaction-privilege-tax/tpt-refund for submitting a refund claim. All documents are to be returned solely to the Arizona Department of Revenue.
Claim of Exemption for Affiliated Party
As of July 1st, 2013 income derived from commercial leases between two businesses with at least 80% common ownership is exempt from transaction privilege tax. This applies to leases between affiliated companies, businesses, persons or reciprocal insurers if the lessor holds a controlling interest in the lessee or vice versa. If you have any questions concerning this exemption, please call the Business Services office at 480-312-2400.
Resources
Contact Us
Office Location
Monday, Tuesday, Thursday and Friday 8 a.m. - 5 p.m.
Wednesday 9 a.m. - 5 p.m. except City Holidays
P: 480-312-2400
F: 480-312-4806
Tax and License Office Location
Business Services Tax and License
7447 E. Indian School Road, Suite 110
Scottsdale, AZ 85251
List of 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.
Includes advertising by radio, television, direct mail, billboards, or any other means.
Advertising (PDF)
Includes movies, concerts, circuses, sporting events, video games, tennis courts, golf course,
etc.
Amusements, Exhibitions
& Similar Activities (PDF)
Includes developers, speculative builders, general contractors, construction managers and owner-builders.
Includes copying, photo reproductions, engraving, embossing, micrographics, etc.
Job
Printing (PDF)
Includes mining, smelting or producing minerals; felling, producing or preparing timber; extracting, refining or producing oil or natural gas.
Includes newspapers, periodicals, magazines, etc. including advertising and subscription income.
Publishing
& Periodical Distribution (PDF)
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 Real Property (PDF)
Includes rental of equipment, automobiles, tools, furniture, etc.
Renting,
Leasing, or Licensing for Use of Tangible Personal Property (PDF)
Includes preparing and serving food or beverages for consumption on or off the premises.
Restaurants
and Bars (PDF)
Includes the sale of any tangible personal property such as food, artwork, cars, furniture,
equipment, etc.
Retail Sales (PDF)
Includes telephone, telegraph, cable TV, monitoring security or alarm systems, computer
interface, FAX, etc.
Telecommunication Services (PDF)
In addition to the one and seventy-five hundredths percent (1.75%) 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.
Transient Lodging -
Hotel/Motel (PDF)
In addition to the one and seventy-five hundredths percent (1.75%) 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.
Includes transporting persons or property by railroad; property by aircraft; or oil, natural gas or artificial gas through a pipeline.
Use tax is a one and fifty-five hundredths percent (1.55%) 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.
Use Tax (PDF)
Includes providing water, electricity or gas.
FAQ
The combined tax rate for the State of Arizona, Maricopa County, and the city of Scottsdale for most taxable activities is 8.05%. The combined rate consists of 5.6% for the State, .7% for the County, and 1.75% for the city of Scottsdale.
Yes, the City taxes both the rental of residential and commercial property. All commercial property rented in the City is subject to tax at the 1.75% tax rate. Also, property owners that have residential rental property in the City and have more than two (2) such rental units available in the State of Arizona are subject to City tax at the 1.75% tax rate. Or, if a residential property owner has one (1) or more commercial property units available for rent in the State, then all residential rental property located in the City is subject to the City tax at the 1.75% tax rate.
Residential rentals for less than 30 days are subject to an additional 5.0% transient tax. (See Hotel/Motel brochure)
| Scenario | Scottsdale Property Treatment |
|---|---|
| Owner has one residential rental property in Scottsdale that has rented on a long-term basis (greater than 29 days) and no other residential or commercial rentals in the state. | Non-taxable since the rental is on a long-term basis. |
| Owner has one residential rental property in Scottsdale that is rented on a short-term basis (less than 30 days) and no other residential or commercial property rentals in the state. | Taxable under the transient lodging classification since the rental is on a short-term basis of less than 30 days. |
| Owner has one residential property in Scottsdale and one commercial property in another city/town in Arizona. | Taxable due to the commercial rental property. |
| Owner has a tri-plex rental property in Scottsdale with all units rented or available for rent. | Taxable since a tri-plex has three separate units. |
| Owner has one residential rental property in three different cities/towns, one in Scottsdale. | Taxable due to having three units in the state. |
| Owner has a property manager taking care of renting their one residential rental property in Scottsdale. | Taxable due to the property manager renting the property for the owner. Property manager would report on the owner's license. |
Yes, at the City tax rate of 1.75%. The model City Tax Code provides the cities with an option to not tax food. The City of Scottsdale has not selected this option; therefore all food sold in the City of Scottsdale is subject to the City privilege (sales) tax. The State of Arizona and Maricopa County does not tax food.
When you apply for a Privilege (sales) Tax License with the
Arizona Department of Revenue you will submit privilege
(sales) tax for the State, the County and the City of
Scottsdale on a consolidated tax return form. You can
find more information at: https://azdor.gov/transaction-privilege-tax/reporting-guide
You can apply for a Transaction Privilege (sales) tax
license at: azdor.gov.
Tutorials on how to apply and file returns are
available at: https://azdor.gov/taxpayer-education/tpt-tutorials
Yes, it is the responsibility of the business/artist to remit privilege (sales) tax. Whether you collect it from your customers or not, the tax liability for all taxable business conducted in the City or Scottsdale must be remitted.
Taxes are calculated by stating the gross receipts for the reporting period on the tax return, entering the itemized deductions, then multiplying the resulting net taxable amount by the appropriate tax rate (1.75%).
For retail transactions, these types of charges are not considered taxable if the charges are separately stated to the customer and the seller separately maintains records summarizing such charges.
For tax exemption on retail items in the City of Scottsdale, the following criteria must be met: 1) the order must be placed from outside of Arizona, 2) the item is delivered to the buyer outside of Arizona and 3) the item must be for use outside of Arizona. For tax exemption on motor vehicle sales, the following criteria must be met: 1) the order must be by a non-Arizona resident, 2) the item is delivered to the buyer outside of Arizona and 3) the item must be for use outside of Arizona. Evidence that the applicable criteria have been met needs to be properly documented in the seller’s books and records.
Items sold by Scottsdale based businesses via the Internet to Arizona residents are taxable and reportable to the City at the 1.75% tax rate.
Use tax is a tax at the rate of 1.55% on items stored or used in the City, which have been purchased or rented without a local transaction privilege (sales) or equivalent tax being paid to the seller.
For privilege (sales) taxes, 1% goes to the General Fund .2% goes to transportation (per 1989 voter approval), .2% goes to the McDowell Sonoran Preserve (per 1995 voter approval), .15% goes to the McDowell Sonoran Preserve (per 2004 voter approval), .1% go to public safety (per 2004 voter approval) and .1% goes to transportation (per 2018 voter approval). For use taxes, 1% goes to the General Fund, .2% goes to the McDowell Sonoran Preserve, .15% goes to the McDowell Sonoran Preserve (per 2004 voter approval), .1% go to public safety (per 2004 voter approval) and .1% goes to transportation (per 2018 voter approval).