As winter visitors come to town, it’s a good time to focus on the important role tourism plays in funding town operations. Unlike neighboring Scottsdale and Phoenix, we do not pay Paradise Valley property taxes, in part because tourism funds 40% of our operating budget.
In the fiscal year ended June 30, 2024, we received $15.7M in Retail and Hospitality Transaction Privilege Tax revenue (sales tax) and $6.6M in occupancy tax (bed tax) for a total of $22.3M of our $55.6M General Fund revenue, used to fund operating expenses. These resort-related tax revenues are a critical source of funding for police, public safety and all town services.
Our resort-related revenues have more than tripled in the last 10 years and we look forward to further growth once the new Smoketree and Ritz-Carlton properties become operational.
Although tourism revenues plummeted during the pandemic, hitting Paradise Valley with the largest revenue drop in Arizona, we were able to weather the downturn until travel rebounded, yielding record tourism-related revenue in the last two years.
Our destination marketing organization, “Experience Scottsdale,” promoting Paradise Valley tourism is funded largely by investments from Scottsdale and Paradise Valley. Our $2.2M Experience Scottsdale investment in fiscal 2024 yielded an almost ten-fold return toward our $22.3M in tourism tax revenue.
I have enjoyed my two years on the Experience Scottsdale Board of Directors ensuring our investment is well spent promoting Paradise Valley resorts and restaurants. While we all enjoy the amenities of our neighboring Scottsdale, we are a unique community, and I’m committed to focusing on Paradise Valley – making sure we never have a property tax.
Anna Thomasson is a member of the Experience Scottsdale Board of Directors and a Paradise Valley Town Councilmember. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
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