Let’s get into the weeds. Per capita TPT sales tax can’t be used as a tourism only economic marker. Transaction Privilege Tax | Arizona Department of Revenue.
The reason you cannot use TPT sales as strictly tourism is because TPT sales are not 100% tourism driven.
Sedona city sales tax is the highest on Smith’s benchmark TPT tax list.
TPT Tax Collection Numbers
Included in the TPT report has other sources not related to tourism. Sedona city sales tax gets imposed on residents and businesses within the city limits. City sales tax is charged to the location of delivery. Translation, everything delivered to every business and resident in Sedona gets charged a city sales tax with the exception of businesses items purchased for resale. This would include high priced items such as appliances, building material, computers, equipment, etc.
Sedona businesses have an additional tax, lease rent tax. Every business in Sedona that rents a building or a space get charged 3.5 % city sales tax on their rent. Those that rent may not be aware of it because the landlord pays this money via the Arizona Department of Revenue, Arizona’s Transaction Privilege Tax license reporting and making payments to ADOR monthly.
In addition to deliveries Sedona businesses and residents get charged city sales tax on their utilities, franchise fees.
Remember when any community member within the region that comes into Sedona to have a meal or does some shopping they get charged city sales tax. That is not tourism related. That is community related.
Interesting fact:
Even those getting deliveries outside the incorporated area within the sedona region, are getting charged a city sale tax as they use the name Sedona. These areas would include Village of Oak Creek, Red Rock Loop, Red Rock wilderness, and Oak Creek Canyon. The residents in unincorporated Sedona may put in a request for reimbursement to the city of Sedona. However, this seldom happens.
Sedona residents contribute significantly more than what the city is claiming.
The original numbers of what the city residents are contributing was calculated by the Sedona Chamber of Commerce.
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