Scottsdale, AZ Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Base hotel tax rate
- 1.70% of gross lodging income (§ 444)
- Additional transient lodging tax
- 5% of gross lodging income (§ 447)
- Combined city lodging tax
- 6.70% of gross income
- § 447 revenue use
- 50% marketing, 50% tourism programs
- License renewal deadline
- due Jan. 1, delinquent after January
- Late-filing penalty
- 5%/month, capped at 25%
- Tax administrator
- Tax Collector (Financial Services GM)
Summary
Scottsdale taxes hotel and lodging revenue at 1.70% of gross income under City Code § 444, plus an additional 5% transient lodging tax under § 447, for a combined 6.70% local rate. The Tax Collector, meaning the Financial Services General Manager, administers the tax and requires an annual transaction privilege tax license.
Sec. 444. Hotels. The tax rate shall be at an amount equal to one and seven tenths percent (1.70%) of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space furnished to any: (a)Person. 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 Section 444, there is hereby levied and shall be collected an additional tax in an amount equal to five percent (5%) 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. Fifty percent (50%) of the revenue derived from this additional tax imposed in this section shall be used for destination marketing to promote tourism and fifty percent (50%) shall be divided among tourism-related event support, tourism research, tourism-related capital projects, and other eligible uses as determined by city ordinance and state law.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 80).
Full Breakdown
70% of gross income from charging any person for lodging or lodging space. "Hotel" is defined in § 100 broadly to include any public or private hotel, inn, hostelry, tourist home, house, motel, rooming house, apartment house, trailer, or other lodging place within the City offering lodging for compensation to a transient, excluding foster homes, rest homes, sheltered care homes, nursing homes, and primary health care facilities. 70%. Half of the § 447 revenue funds destination marketing to promote tourism, and the other half is split among tourism-related event support, tourism research, tourism-related capital projects, and other eligible uses set by city ordinance and state law.
Operators must hold a transaction privilege and use tax license, valid only for the calendar year issued, renewed annually with the fee due January 1 and delinquent after the last business day of January, under § 330. The Tax Collector, defined in § 100 as the Financial Services General Manager or designee, administers collection, audits, and penalty assessment for this tax alongside the City's other privilege and excise taxes in Appendix C.
Violations & Fines
Under § 540, a hotel operator who files late owes a penalty of 5% of the tax per month or fraction of a month late, capped at 25% of the tax due; failing to pay on time adds a 10% penalty, with the combined late-filing and late-payment penalties capped at 25%. A deficiency caused by negligence draws an added 10% penalty, and one caused by civil fraud or tax evasion draws a 50% penalty. Unpaid tax also accrues interest at the federal short-term rate plus three percentage points, compounded annually.
Frequently Asked Questions
What is Scottsdale's total hotel occupancy tax rate?
Who administers Scottsdale's transient lodging tax?
What happens if a Scottsdale hotel doesn't pay its lodging tax on time?
Where does Scottsdale's extra 5% hotel tax revenue go?
Sources & Official References
Other rules in Scottsdale
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Transient Occupancy Tax in Nearby Cities
How other cities in Maricopa County handle transient occupancy tax.