By Matthew Holloway |

The City of Scottsdale has issued a Truth in Taxation notice advising residents that city officials may consider an increase in the primary property tax levy for fiscal year 2026-27 as part of the municipal budget process.

According to Scottsdale’s public notice and supporting budget documents, the city is proposing a primary property tax levy increase tied largely to Arizona’s statutory two-percent adjustment, while projecting that the primary property tax rate itself could decline due to growth in assessed property values.

The Arizona Daily Independent reported that Scottsdale is proposing an increase in primary property taxes of $681,888, or 1.70%, above the prior year’s levy level, excluding revenue generated through new construction and changes related to voter-approved bonded indebtedness or overrides.

Scottsdale’s published notice states that the city “may increase” its primary property tax levy over last year’s level and emphasizes that the notice itself does not mean a tax increase has been approved. Instead, the city said the notice reflects the possibility that the City Council could discuss and potentially adopt a levy increase during the budget process.

According to the city, the current primary property tax rate of $0.4891 per $100 of assessed valuation could decrease to as low as $0.4801 as rising assessed property values offset portions of the proposed levy increase.

City budget documents show Scottsdale’s proposed FY 2026-27 primary property tax levy totals approximately $41.29 million, an increase of about $1.02 million over the current fiscal year’s $40.27 million levy. City officials reported the increase is primarily attributable to the statutory two-percent adjustment and includes repayment to the Risk Management Fund for tort liability claim payments made during calendar year 2025.

Scottsdale’s proposed secondary property tax levy, which is used for repayment of voter-approved general obligation debt, is also forecast to increase. According to city documents, the proposed secondary levy would rise from $34.85 million in FY 2025-26 to $36.70 million in FY 2026-27 due to increased debt service obligations.

Despite those levy increases, Scottsdale projects the combined city property tax rate could decrease from $0.9124 to approximately $0.9068 per $100 of assessed valuation because of growth in the city’s net assessed property values. City officials estimate that a homeowner with an assessed property value of $100,000 would pay approximately $90.68 in combined city property taxes under the proposal.

The city has scheduled a Truth in Taxation hearing, Property Tax Public Hearing, and Municipal Streetlight Improvement District hearing for June 9 at 5 p.m. at Scottsdale City Hall Kiva, located at 3939 N. Drinkwater Boulevard. Meetings will also be broadcast on Cox Cable Channel 11 and streamed through Scottsdale’s website.

Following those hearings, Scottsdale officials plan to consider formal adoption of property tax ordinances during the City Council meeting scheduled for June 23.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.