The Fountain Hills business community experienced a standout year for commercial activity in 2023, recording more than 18% growth in transaction privilege tax by year-end, signaling an uptick of commerce throughout town.
While often referred to as a sales tax, the transaction privilege tax (TPT) is a tax on local vendors for the privilege of doing business in town. In Fountain Hills, an estimated $17.4 million of TPT was budgeted for the year. By the end of the fiscal year 2023 (September), the town had accumulated $20.6 million in TPT, signaling a banner year for the local business community.
All taxable categories increased year-over-year, the largest out-performing sectors being services, construction and restaurant/bars. That’s according to the Town’s Chief Financial Officer David Pock, who adds the boost in construction tax can be attributed to a major speculative construction project that sold this year resulting in additional taxes.
