Scottsdale, AZ 7447 East Indian School Road, 85251
Contact: |
Tax & Licensing Office (480) 312-2400 |
Taxpayer
Problem
Resolution Officer:
|
Sharron Walker
(480) 312-7867
|
Collection
By: |
Self; Dept. of Revenue (effective 1/1/2017) |
Sales
Tax %: |
1.2;
1.4 (effective 7/1/1995); 1.65 (effective 7/1/2004); 1.75 (effective 2/1/2019) |
Use
Tax %: |
1.2
(effective 7/1/1995); 1.45 (effective 7/1/2004); 1.55 (effective 2/1/2019) |
City Tax Rates: |
Web Page |
Interest
Rate %/month: |
(same as state) |
License
Fee: |
$50.00
plus a $12.00 application fee. Effective 1/1/15 License Fee is $50.00, No Application Fee, and Renewal Fee is $50.00. Residential Rental License Fee is $2.00 per Rental Unit up to Maximum of $50.00. All other business activities, License Fee are $50.00. |
Length
of License: |
Annual |
Criminal
Penalty: |
Class
1 |
Date
Code Effective: |
4-1-87 |
Chapter
#: |
Appendix C
|
Amendments
or Special Provisions:
1.
Impose an additional 3% bed tax. Impose an additional 5% rate effective July 1, 2010.
1A. Jet fuel taxed
at $.018 per gallon.
2. Amendment to
Sec. 447 as follows:
Sec. 447.
Rental, leasing, and licensing for use of real property: additional
tax upon transient lodging.
In addition to
the taxes levied as provided in Appendix C, Section 444, there is
hereby levied and shall be collected an additional tax in an amount
equal to three (3) percent of the gross income from the business activity
of any hotel engaging or continuing within the city in the business
of charging for lodging and/or lodging space furnished to any transient.
Two-thirds of the revenue derived from this additional tax imposed
in this section shall be used for hospitality development, including
destination and event promotion, visitor related capital projects
and visitor research. "Transient" means any person who, for any period
of not more than thirty (30) consecutive days, either at his own expense
or at the expense of another, obtains lodging or the use of any lodging
space in any hotel for which lodging or use of lodging space a charge
is made.
3. Amendment to
Sec. 310 as follows: (Effective July 1, 1989; amendment to subsection
(f) effective August 6, 1992.) (Expires on December 31, 2014)
Sec. 310.
Licensing: duration of license; annual license fee; transferability;
display; penalties; residential property provisions; cancellation;
renewal; late application provisions; actions.
(a) Except as
provided in Section 320, the Privilege License shall be valid until
request for cancellation and unless cancelled or revoked under the
provisions of Section 320 or by surrender of the license by the licensee
or expiration through cessation by the licensee of the business activity
for which it was issued or through failure of the licensee to pay
the annual license fee imposed hereunder.
(b) The Privilege
License shall be nontransferable between owners or locations, and
shall be on display to the public in the licensee's place of business.
(c) Any licensee
who permits his license to expire through cancellation as provided
in Section 320, by his request for cancellation, by surrender of the
license, or by the cessation of the business activity for which the
license was issued, and who thereafter applies for a license, shall
be granted a new license as an original applicant and shall pay the
current application license fee imposed by Section 300, and the annual
license fee imposed herein. Any licensee who loses or misplaces his
Privilege License which is still in effect shall be charged the current
application license fee for each reissuance of a license.
(d) In addition
to the license application fee imposed under Section 300, and excepting
those persons paying the annual license fee imposed under (f) of this
Section, each person licensed under this Chapter shall pay an annual
license fee of fifty dollars ($50.00) for each license held by such
person. Such fee shall be due and payable on or before January 1 of
each year and shall be considered delinquent if not received on or
before the last business day of January each year. Such annual fee
must be paid to and received by the Tax Collector by the due date
and shall be nonrefundable.
(e) Any licensee
who fails to renew his license on or before the date provided in (d)
above shall be deemed to be operating without a license following
such due date, and shall be subject to all penalties imposed under
this Chapter against persons required to be licensed and operating
without a license. The non-licensed status may be removed by payment
of an annual license fee in the amount of one hundred fifty percent
(150%) imposed under (d) above, and the payment of a nonrefundable
application fee required under Section 300.
(f) Notwithstanding
the provisions of (d) above, a person who is engaged in the rental
of residential real property, other than transient lodging, shall
pay an annual license fee of two dollars ($2.00) per residential unit,
(excluding units primarily used for transient lodging) per year not
to exceed fifty dollars ($50.00). The due date for such fees shall
be as set forth in (d) above, and such fee shall be nonrefundable.
Any licensee required to pay an annual fee under this subsection,
who fails to pay same by said due date shall be deemed to be operating
without a license after such date, and subject to all penalties imposed
under this Chapter against persons required to be licensed and operating
without a license. The non-licensed status may be removed by payment
of a penalty of an additional one dollar ($1.00) per unit per year,
not to exceed twenty-five dollars ($25.00) per year, and the annual
license fee, and the payment of a nonrefundable application fee required
under Section 300.
(g) (Reserved)
(h) If any person
required to be licensed under this Chapter fails to obtain a license
on or before the conducting of any business activity requiring such
license, such person shall be subject to a penalty in the amount of
one hundred fifty percent (150%) of the applicable fee for each event
or period of time for which such fee would have been imposed from
and after the date on which such activity commenced until paid. This
penalty shall be in addition to any other penalty imposed under this
Chapter and must be paid prior to the issuance of any license.
(i) Notwithstanding
the failure of any person to apply for a license and to remit all
fees and penalties, if any, imposed herein, such person conducting
a business activity subject to licensing without obtaining a license,
shall be liable to the city for all applicable fees and penalties
and shall be subject to the provisions of Sections 580 and 590, to
the same extent as if said fees and penalties were taxes and penalties
under such Sections.
4. Section 315 is
added as follows: (Effective July 1, 1989) (Expires on December 31, 2014)
Sec. 315.
Transient privilege licenses.
Notwithstanding
the provisions of Section 300, a person who will be engaged in business
for a period of thirty (30) days or less, may be issued a transient
privilege license, which shall be valid only for a thirty (30) day
period following the application date, upon payment of a transient
application and license fee of twenty-five ($25.00) dollars in lieu
of all other fees imposed under this Article. In the event that a
person obtaining and operating a business activity by virtue of a
transient privilege license, continues to conduct said business beyond
the thirty (30) days set forth in such license, such person shall
be deemed to be conducting a business activity in the city without
a valid privilege license, and shall be subject to all penalties imposed
on such activity under this Chapter. In addition thereto, such person
shall not be relicensed with either a privilege license under the
provisions of Section 300, or a further temporary license under the
provision of this Section without paying all other applicable application
fees and annual fees.
5. Regulation 310.1
is added as follows: (Effective July 1, 1989) (Expires on December 31, 2014)
Reg. 310.1.
Proration of initial annual license fees.
(a) Licensees,
subject to the provisions of Section 310(d), whose initial application
for a privilege license is received by the Tax Collector after May
28, 2002, will be subject to an initial annual license fee imposed
by Section 310(d) on a proration schedule as follows:
BUSINESS
START DATE |
APPLICABLE
LICENSE FEE
|
January
1 - March 31 |
$50.00
|
April
1 - June 30 |
37.50
|
July
1 - September 30 |
25.00
|
October
1 - December 31 |
12.50
|
(b) Licensees,
subject to the payment of the annual license fee imposed by Section
310(f) for residential real property, whose initial application for
a privilege license is received by the Tax Collector after May 28,
2002, will be subject to an initial annual license fee imposed by
Section 310(f) on a proration schedule as follows:
BUSINESS
START DATE |
APPLICABLE
LICENSE FEE |
January
1 - March 31 |
$2.00
(per unit) |
April
1 - June 30 |
1.50
(per unit) |
July
1 - September 30 |
1.00
(per unit) |
October
1 - December 31 |
.50
(per unit) |
6.
Reg. 310.2. "Casual" exemption of activities from the licensing requirements
of Section 310. (Expires on December 31, 2014)
Individuals,
other than those engaging in rental of real property, may be considered
as engaged in "casual" activities, and not subject to the annual license
fee imposed under Section 310, provided that they are engaged in activities
such as the private sale of personal automobiles, garage sales, and
the sale of homemade artifacts, on no more than three separate occasions
during any calendar year.
7. Regulation 310.3
is added as follows: (Effective July 1, 1989; amendment to subsection
(c)(1) effective August 6, 1992.) (Expires on December 31, 2014)
Reg. 310.3.
Annual license fee for persons engaged in providing transient and
non-transient lodging.
(a) For the
purposes of payment of the annual license fee imposed by Section
310, and this regulation, "primarily used for transient lodging"
shall mean actual use of that particular lodging unit as transient
lodging at or exceeding eighty-five percent (85%) of total use.
(b) For the
purposes of subsections 310(b) and (b) only, it shall be presumed
that each lodging unit is not primarily used for transient lodging
and is therefore subject to the two dollar ($2.00) per unit annual
fee, until the contrary is established by the licensee to the satisfaction
of the Tax Collector.
(c) A person
who is engaged in providing both transient and non -transient lodging
shall pay:
(1) The two
dollar ($2.00) per unit annual license fee for each unit not primarily
used for transient lodging not to exceed fifty dollars ($50.00);
plus
(2) The fifty
dollar ($50.00) per location annual license fee for each location
where he is providing units primarily used for transient lodging.
8. Section 485 is
added as follows: (Effective July 1, 1993)
Sec. 485.
Wastewater Removal Services
(a) The tax rate
shall be an amount equal to one and six and one-half tenths percent (1.65%) of the
gross income from the business activity upon every person engaging
or continuing in the business of providing wastewater removal services
from premises, locations, or facilities located within the city limits
of Scottsdale by means of sewer lines or similar pipelines.
(b) The tax imposed
by this section shall not apply to gross income relating to the providing
of wastewater removal services from any nonprofit primary health care
facility.
9. Regulation 270.1
is amended as follows: (Effective July 1, 1993)
(d) providing
wastewater removal to consumers or ratepayers, by means of sewers
or pipeline, or by any other method.
10. Regulation 460.1
(a) is amended as follows: (Effective July 1, 1993)
(10) wastewater
removal services, per Section 485.
11. On November 6,2018, a majority of voters in the City of Scottsdale approved Question
1 to increase the Transaction Privilege Tax (TPT) to 1.75% as well as increase the Use Tax
Rates to 1.55%. The rate increases will remain for 10 years to provide funds for transportation improvement projects.
This change has an effective date of February 1, 2019.
12. On June 11, 2019, the Mayor and Council of the City of Scottsdale passed Ordinance No. 4403 electing Local Option QQ in Section
465 of the Model City Tax Code allows a Retail Transaction Privilege Tax Exemption for sales of fine art to out of state customers. The provisions of this Ordinance conforms to the
Model City Tax Code, which is controling.
This change has an effective date of May 1, 2019.
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