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    Sedona.Biz – The Voice of Sedona and The Verde ValleySedona.Biz – The Voice of Sedona and The Verde Valley
    Home » The Myth about Property Taxes
    City of Sedona

    The Myth about Property Taxes

    July 27, 20112 Comments
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    No Tax without Resident Vote

    City Talk Column for July 27, 2011

    by Vice Mayor Cliff Hamilton

    July 27, 2011 (July 27, 2011) – Almost everyone owning real estate in Sedona pays property tax (except for churches and some exempt non-profit groups) but few seem to know much about where that money goes. In short, it goes to schools, the fire district and county government. None goes to the city. Sedona does not have a city property tax.

    Over the years, we have developed a city culture that makes anyone even remotely discussing a city property tax a social outcast. Some say that stems from promises made when the city was incorporated. Others say it grew from our high-priced real estate. Still others cannot remember where it came from – it’s just part of Sedona.

    Since the notion of a city property tax is such a strong negative it’s often used as a club to bash opponents even when it’s not related. Anyone proposing a new project that someone else opposes can expect to be clubbed with it regardless of the topic – an indoor recreation site, city convention center or ownership of a highway. The cry of “That will lead to a city property tax,” is hurtled as a final desperate scare tactic.

    But, laying culture and clubs aside, Sedona doesn’t have a city property tax, first because we don’t need one, and the second because one cannot be created unless Sedona residents vote one in – and that is highly unlikely.

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    Sedona doesn’t need a property tax with a 3% city sales tax paying many of our bills. Even during this major financial downturn, Sedona chalked up over $700,000 in budget surplus in the 2010 fiscal year and will be near a $1 million surplus in 2011. That, along with having a general fund reserve near 100% of our annual operations budget (30 to 50% reserve is considered adequate) puts Sedona in a solid financial position.

    In addition, paying off city sewer bonds in 15 years will immediately add about $6 million annually to our general fund that currently goes to debt payments. Even with inflation that sudden windfall will create a huge annual surplus. Sedona’s financial worries will become what to do with embarrassingly large surpluses, not how to pay for things. City property tax? Who needs it!

    The other simple fact is that no Sedona city property tax can happen – ever – unless city voters approve it in a public election. The City Council cannot enact one nor can city staff impose one. State law requires voter approval of any kind of general obligation tax (like a property tax) and nothing short of changing state law will alter that reality.

    So next time you hear someone allege that some action by the city, “…will lead to a city property tax,” consider that he or she either does not understand the restrictions on creating a city property tax or are resorting to an old Sedona myth to sway your opinion.

    The information and opinions in this article are my own and do not necessarily reflect those of the Sedona City Council or city staff.

    Healing Paws

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    2 Comments

    1. Publisher on July 27, 2011 7:23 am

      The only way we get property tax is to vote it in?

    2. denise barnhart on July 31, 2011 1:32 pm

      Cliff … you’re my favorite council-person. And I’d be perfectly happy if you remained a council-person until the sewer disposal becomes natural similar to Springerville.

      But your logic kind of misses the target. A need for any tax almost always precedes the creation of the tax. Councils don’t wake up and say ‘Wow … let’s have some more taxes!’

      And so, folks that caution against future spending requirements do indeed worry about ‘a tax’. And watching Washington in action lately, I suspect the caution in Sedona merits appreciation.


    Analyzing City’s Legal Right to
    Ban OHVs on Public Roads

    By Tommy Acosta
    Mea Culpa! Mea Culpa! Mea Maxima Culpa! I screwed up. Blew it. Totally made a fool of myself. Missed the boat. I am talking about my editorial on the OHV fight, No Legal Traction on OHVs. I assumed that it was ADOT that would make a decision on whether the city could legally ban off road vehicles from our public roads like S.R. 89A and S.R. 179. Man was I off. ADOT has nothing to do with allowing or disallowing the city to do so. ADOT’s response to me when I asked them to clarify their position, was curt and to the point. “ADOT designs, builds and maintains the state highway system,” I was told. “It is not our place to offer an opinion on how state law might apply in this matter.” It was a totally “duh” moment for me when I realized that that the decision or judgement on the OHV ordinance, would involve the state and not ADOT. Chagrinned I stand. The crux of the matter then is whether the city can effectively use a number of standing state laws that can be interpreted to determine whether the city can legally ban the vehicles or not. Read more→
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