Article written and submitted by the City of Sedona staff.

Sedona AZ (January 11, 2010) – On January 12, 2010, the Sedona City Council will discuss a resolution and ordinance to enable the City to audit sales tax collections. This is the first step towards the implementation of the Council’s top priority of continued financial stability based on their November 12, 2009, retreat.

Since the Council Retreat, city staff has been working with representatives from the League of Arizona Cities and Towns to modify the City’s tax code and to create the necessary related ordinance and resolution enabling the City to pursue the local auditing of sales tax collection.

This local auditing capability has become increasingly essential with the deep staff reductions at the Arizona Department of Revenue (AZDOR). Currently, the state is responsible for conducting sales tax audits. These reductions at AZDOR combined with the decline of City sales tax collection levels necessitate participation in sales tax audits at the local level.

Forty-two Arizona cities have supplementary local audit authority, including Camp Verde, Chino Valley, Cottonwood, Holbrook, Prescott Valley, Williams, and Winslow.

If approved by Council, the City will pursue a variety of approaches related to local sales tax audits resulting in a Council presentation later this spring. It is anticipated that if an audit project is implemented, additional revenues found as a result of the audit process would offset the cost of auditing.

For more information, please contact the City Manager’s office at City Hall, 102 Roadrunner Drive, Sedona.

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