Local governments mostly get their revenue from local taxes, such as property tax, hotel (TOT) tax, sales tax and utility users tax. In addition, cities receive funding from federal and state grants for programs or equipment. Cities charge fees for certain services, such as recreation programs and building permits, that directly cover the costs of those services.
Scotts Valley is heavily reliant on sales tax and hotel tax, which makes up 50% of its revenues (sales tax 31% and hotel tax 19%). Just 13% of its revenues come from property tax and 6% from utilities users tax. The remaining sources are franchise and business license taxes and other grant, fee or state sources.