Research & Data

Population & Demographics

Utilities

The City of Scottsdale is a provider of utility services and also has strong partnerships with private utility providers to ensure a seamless development process and exceptional service for your business. In addition, due to mild climate and geographic location, natural catastrophic occurrences in Arizona are minimal. Utility rates in Arizona also receive high marks in competitiveness. View the Competitiveness Rates online

Water, Trash and Recycling Service

Tax Rates

The Arizona Department of Revenue collects the tax on behalf of the county and most cities; however, many of the larger cities in Arizona administer and collect their own privilege taxes. These cities are referred to as non-program cities. Sales in the non-program cities must be reported directly to the applicable city. The state and county taxes must still be reported and remitted to the state. Scottsdale, Ariz. Is a non-program city.

The State of Arizona has aggressively cut business taxes to lower the cost of doing business by offering:

  • No corporate franchise tax
  • No income tax on dividends from out-of-state subsidiaries
  • No worldwide unitary tax
  • No sales tax on manufacturing equipment
  • 80 percent sales factor for corporate income tax, ramping up to a 100 percent option over time

Recent legislation has also reduced Arizona’s corporate income tax rate by 30 percent, reduced Arizona’s commercial property assessment ratio, and increased personal property tax exemptions by 15 percent. Learn more by viewing a full list of Arizona Commerce Authority incentive opportunities and programs.

State and Local Incentives

Arizona Incentives, Programs and Grant Opportunities

 

Arizona has lowered taxes (currently 4.9%), streamlined regulations, and established a suite of incentives to support corporate growth and expansion. The Arizona Competitiveness Package, ground breaking legislation adopted in 2011, makes it easier for existing Arizona companies to prosper and establish Arizona as one of the most desirable places for expanding companies to do business.

The following information, courtesy of the Arizona Commerce Authority website, describes some of the programs and incentives the Arizona Commerce Authority offers and to apply electronically click here for details about the easy application systems:

  • Quality Jobs: The primary goal of the Quality Jobs tax credit is to encourage business investment and the creation of high-quality employment opportunities in the state. The Quality Jobs tax credit offers up to $9,000 of Arizona income or premium tax credits spread over a three-year period for each net new quality job ($3,000 per year).
  • Research & Development: Refundable income tax credits are available for investment in R&D activities conducted in Arizona. The R&D tax credit through 2017 is equal to 24% of the first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million. For 2018 and thereafter, the tax credit rates will be 20% of the first $2.5 million in qualifying expenses plus 11% of the qualifying expenses in excess of $2.5 million.
  • Qualified Facility Tax Credit: To stimulate the creation and expansion of manufacturing facilities, including manufacturing-related R&D and headquarters facilities, the state provides refundable income tax credits to companies who expand or locate a Qualified Facility in Arizona. Subject to eligibility requirements, the Qualified Facility tax credit offers a refundable income tax credit equal to the lesser of: 10% of the qualifying capital investment, $20,000 per net new job at the facility, or $30,000,000 per taxpayer per year.
  • Innovation Accelerator Fund: The Innovation Accelerator Fund is an $18.2 million loan participation program to stimulate financing to small businesses and manufacturers designed to stimulate financing of small businesses and manufacturers, while fostering business expansion and job creation in the state of Arizona.
  • Sales Tax Exemptions for Manufacturing: Exemptions are available for:
    • Machinery or equipment used directly in manufacturing, see A.R.S. § 42-5159(B)(1).
    • Machinery, equipment or transmission lines used directly in producing or transmitting electrical power, but not including distribution, see A.R.S. § 42-5159(B)(4).
    • Machinery or equipment used in research and development, see A.R.S. § 42-5159(B)(14).
    • The electricity or natural gas for businesses that are principally engaged in manufacturing or smelting operations. See A.R.S. §§ 42-5063(C)(6) and 42-5159(G).
  • International Trade Program: Administered by the Arizona Commerce Authority, the International Trade Program offers various types of technical assistance/capacity building and financial assistance to Arizona small businesses as they go global for the first time with their sales or enter new international markets.
  • Additional Depreciation: To encourage new capital investment, Arizona provides accelerated depreciation schedules for commercial personal property. For eligible property initially classified in tax year 2012 or thereafter, additional depreciation reduces the personal property’s full cash value for tax purposes by 75% in the first year of use, 59% in the second year of use, 43% in the third year of use, 27% in the fourth year of use and 11% in the fifth year of use

View the full list of Arizona Commerce Authority incentive opportunities and programs.

City of Scottsdale Opportunities

  • Industrial Development Authority (IDA): The Industrial Development Authority of the City of Scottsdale is committed to expanding economic development and business enterprise for the City of Scottsdale. The mission of the IDA is to promote the retention, expansion and attraction of businesses and commercial enterprises in Scottsdale, and to expand employment opportunities.
  • Foreign Trade Zone Designation: A Foreign Trade Zone is a secured area treated as though legally outside of the U.S. Customs territory where merchandise may be brought duty-free for purposes such as storage, repacking, display, assembly or manufacturing. Imports may be landed and stored quickly without full customs formalities. Companies qualifying for FTZ or sub-zone designation are also eligible for a 72.9 percent reduction in real and personal property taxes.
  • Electricity Excise Tax: Scottsdale does not charge a municipal electricity excise tax. This could amount to over 2 percent in other parts of the state.
  • Community & Economic Development Assistance: The City of Scottsdale’s Community and Economic Development team is committed to providing exceptional customer service to its business community. The City considers requests for partnership and public infrastructure assistance on a case-by-case basis and evaluates them on performance, location and the value generated to the community. Some of the current services available to all include:
  • Ombudsman Services: In cases involving both city government and other issues, the Economic Development Department has the ability to assist in expediting potential barriers. This could involve such issues as permitting and planning, liaising with building owners and property agents. ‘Time is money’ and in many cases the department’s efforts can have a measurable effect. Some of the city related efforts include:

    • Exploratory project meeting at no cost to the applicant
    • One-stop-shop | Fast tracked and expedited review and permitting
    • Digital plan submittals
  • Talent Attraction Assistance: Scottsdale has developed a number of strategies in support of helping firms attract and retain top talent, including out-of-state talent recruitment missions and marketing initiatives, Relocation Guides and Technical Recruitment Seminars.  
  • Scottsdale HUBZones: The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. Scottsdale has one HUBZone area, a zone bordered by McDowell Road to the north, Scottsdale Road to the east, 66th Street to the west and Continental Drive/Roosevelt Street to the south. For assistance or to learn more about HUBZones, contact the Economic Development Department staff. 

Travel

Highway and Interstate Access

The City of Scottsdale's location provides significant market advantages. Running parallel to the 101 with access to Interstate 10, Scottsdale is a short drive on the US 60 or the 202 loop to many of the regions work centers and entertainment venues. Access to Northern Arizona can be made without traveling through the central part of the Metropolitan area. In addition, Scottsdale is a:

  • 6 hour drive to Los Angeles
  • 5 hour and 30 min drive to San Diego
  • 5 hour drive to Las Vegas

Air Travel

Scottsdale offers exceptional access from several airport locations, most notably Sky Harbor International Airport or Scottsdale Airport.

  • Scottsdale Airport: With 157,449 takeoffs and landings in 2015,Scottsdale Airport is one of the busiest single runway facilities in the nation. U.S. Customs “US-VISIT” is available daily from 9 a.m. to 7 p.m., and allows visitors from all over the world to come to Scottsdale, provided they have the proper visas. Direct flights to Ronald Reagan Washington National Airport (DCA) are available through Signature Flight, one of two fixed base operators at the airport. 
  • Phoenix Sky Harbor International Airport: Sky Harbor is one of the 10 busiest airports in the United States. More than 100,000 passengers, 1,200 aircraft, and 600 tons of cargo pass through Sky Harbor each day. The airport is served by 15 major airlines with daily service to 80 domestic and 20 international destinations. Average round-trip airfare has been below the national average for the past 13 years. Most employment corridors in Scottsdale are located 20 minutes or less from Sky Harbor.

Major Metropolitan Destinations

Scottsdale is a convenient flight to and from major locations with direct flights daily to places like Baltimore, Boston, Denver, New York, Los Angeles and Washington D.C. View a full list of nonstop destinations.

  • 3 hour 30 minute flight to Chicago, with 21 direct flight options daily
  • 2 hour flight to San Jose, CA
  • 2 hour 45 minute flight to Houston, TX