Culture Sales Tax Explored

Scottsdale, Ariz. may look into whether a small sales tax increase could fund arts and culture projects that have been deferred and delayed as city revenues sagged over the past several years.

Councilwoman Linda Milhaven said an 0.2% increase in the city’s 1.65% sales tax could generate $17 million a year for a desert science center and a proposed historical museum. The 12 cities and towns in the Phoenix area levy an average city sales tax of 2.9%.

Milhaven wants the council to create a citizen’s panel to consider the proposal to provide a reliable revenue source for the non-profit Cultural Council, which has responsibility for the city’s performing arts center and art museum.

The tax could provide a revenue source for a proposed Museum of the West that is expected to cost more than $13 million to build.

Scottsdale’s Arts Council recently adopted a master plan that calls for a stable funding source for public art. Private developers in downtown Scottsdale are required to allocate 1% of a project’s cost to public art, with other funding coming through Scottsdale’s capital improvements budget.

Scottsdale is developing a list of projects for a general obligation bond package that could go to voters later this year. The council postponed a proposed $168 million bond package last year. A decision must be made in March for a November bond election.

Proposals being considered for the GO package include $49 million for the Desert Discovery Center at the McDowell Sonoran Preserve. The center would be eligible for funding through the sales tax increase.

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Arizona
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