The city of Sedona has only used guesstimates for over the last three decades to determine the percentile of city-sales-tax that is contributed by the tourists versus the residents.
The city has never used any real time data metrics for this calculation. Real time data metrics are driven by basic principles of who’s getting taxed, for what, when, and how much. It is crystal clear the city has been not telling you everything, because they do not proper data collection nor do they perform the analytical analysis that is needed.
The history of these so-called numbers came from Jennifer Wesselhoff, the past CEO of the Sedona Chamber of Commerce. Wesselhoff was pitching for money for the lodging industry, members of the chamber. Wesselhoff asked the city to increase the taxes and give the Sedona Chamber of Commerce the city sales and bed tax for their exclusive use.
“Wesselhoff tax”
Documentation proves that these tax increases were dubbed the “Wesselhoff tax” by city manager Tim Ernstar during a March 14th special City Council meeting. At that meeting the council agreed by consensus to move forward with these taxes. During this time the city had a significant drop in its revenue in both its sales tax and bed tax.
At a later date the increase of sales tax was dropped and that trigger A.R.S. § 9-500.06. Hospitality industry; discrimination prohibited. A.R.S. § 9-500.06 mandates that the 0.5% increase to be reinvested back into the industry.
The Sedona Chamber of Commerce presentation included the unsubstantiated numbers on residents -tourism contributions. The chamber threw the numbers out there, they stuck like mud on the wall, nobody challenged them. No one reviewed them. The assumptions were that all retail businesses were tourism, all restaurants were tourism, which is untruthful and obnoxious. There was no real data collection, nor was there any review or analytics on these numbers. Year after year, the city used the chamber numbers which is a lie.
Looking at sedona residents versus tourism percent contributions require getting into the weeds, who’s getting taxed, for what, when, the category, amounts and the percentiles. Not a bundled number. Understanding the sedona city sales tax is charged to every single delivery in the Sedona area regardless of whether or not they are in the city. Sales tax is charged and collected by the city of delivery. Most companies’ programs use the city name for that sales tax collection and pay that to the city of sedona. Since Sedona shares the name and the zip code with unincorporated areas the city is receiving city sales tax from those outside the city limits.
The state law requires that sales tax goes to the location of delivery, not the location of purchase for deliveries. The chamber and citys’ assumptions are not factual. Claiming that every business in Sedona is tourism, that’s not factually true. Sedona residents pay sales tax on utilities which includes cable and phones. Don’t forget the big items that get delivered to Sedona areas like building materials, appliances, computers; the city sales tax is imposed on these.
Our Sedona businesses are charged the same which includes equipment, deliveries, building materials, and everything not for resale. In addition, our businesses through the landlord get charged the 3.5% city sales tax on their rent, a lease tax. Considering the rents are sky high in Sedona these is a sizable cost for our businesses.
Residents and our businesses contribute a hell of a lot more than the city and chamber want you to know. It is not only what the intown business collects but what is imposed on the residents and business, this is not tourism related.
It is time to lower the city’s bed tax and sales tax. Revert back to the city’s’ 2013 sales tax and bed tax rates. This would unleash Sedona from the Sedona Chamber and Lodging group. This would also stop the political shenanigans. It would also create many benefits for the residents and business including driving business into Sedona not out.
Take your power back Sedona
VOTE NO on HOMERULE PROP 400
VOTE YES on Preserve the cultural park PROP 403
VOTE Henry Silbiger for mayor
VOTE Lita Boyd, Jean Buillet, and Rich Gay for council.
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Donna Joy ~ A retired Entrepeneur, Creator, Business owner, Culinary Artist, Chef & Chief Operating Disruptor.
♥ Donna Joy


Donna Joy ~
A retired Entrepreneur, Creator, Business owner, Culinary Artist, Chef & Chief Operating Disruptor.
www.DonnaJoys.com
♥ Donna Joy
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