Scottsdale Tourism Bed Tax Increase (March 2010)

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There was a Scottsdale Tourism Bed Tax Increase, also known as Prop 200, measure on the March 9 ballot in Maricopa County for voters in the city of Scottsdale.

This measure was approved[1]

This measure sought to raise the bed tax, what tourists pay when they check into a local hotel or motel, by a further 2 percent. This will end up increasing the tax from 11.92 percent to 13.92 percent. Tourism is a big profit generator for the city and the city council and tourism bureau see it as the key to leading Scottsdale out of their recession. The money generated from this increased tax would be split between the two. The tourism bureau needs more money to attract tourists to the city so this is a way, they see, to generate those funds. For an average $129 a night room a tourist would end up paying an additional $2.58 if this bed tax increase passed.[2]

The half of the tax that goes to the council is proposed to go towards tourism capital related projects and special events in the city. It is believed that a yes vote on this measures would also help with creating jobs in the city, one in eight jobs in the city is related to the tourism industry. This will be the first time a bed tax increase has been proposed since 1988.[3] The tax increase is proposed to generate approximately $5.5 million a year which would be used for various tourist attraction in the city.[4]

A hotel manager come out against this measure, saying that it is the wrong time to tax people who are coming to Arizona for tourism. Higher prices at hotels would discourage people from staying in a city instead of encouraging them to stay and spend more money. But this is a minority opinion among those in the tourism industry, most are strongly for this and hope it is able to generate more revenue for the city soon.[5] Others are voicing their opposition as well, stating that further taxing would hurt the industry and the proposed increase is a gamble.[6]

Further Reading