After a process that began in late April, the Cottonwood City Council voted 4-3 on Sept. 4 to approve a 0.5 percent sales tax increase. Mayor Tim Elinski and Vice Mayor Kyla Allen were joined by retiring council members Linda Norman and Karen Pfeifer in voting in favor of the tax increase, while Deb Althouse, Ruben Juaregui and Tosca Henry voted against it.
Before voting at the Sept. 4 meeting, the council held the second of two required public hearings, allowing members of the community to speak out in favor or opposition to the change. At the council’s Aug. 7 meeting, no one stood up to speak, and that was true again this week, leading to the council voting just as they had in an initial vote to proceed with the process in May.
“This is the finish line of a long process,” Elinski said at the meeting. “We’ve certainly been discussing this for many, many meetings, and I hope that the public has had an opportunity — many opportunities — to speak with their council. I know I’ve been in many conversations with many folks over this issue.”
The tax increase will apply to most goods and services taxed within the city of Cottonwood, with two notable exceptions. According to Deputy City Manager Rudy Rodriguez, mining revenues, which are governed by a separate statute, and the rental tax, which requires a public vote, will not see changes.
All other sales will see tax increased from 3 percent to 3.5 percent.
According to Rodriguez, the city is not yet certain when the sales tax will go into effect, though the city would like to begin it as soon as possible. Because of an intergovernmental agreement with the Arizona Department of Revenue, the city must notify ADOR 60 days in advance of a tax change, meaning it would be able to begin at Nov. 4 at the earliest.
“We traditionally begin at the start of a month. However, since this is only four days into the month, we are asking to waive the 60-day requirement and begin on Nov. 1,” Rodriguez wrote in an email. “We are hopeful for a positive result and we will begin on the 1st of November. This would give us one additional month of revenue, which is over $200,000.”
Rodriguez said that if ADOR does not grant the city an exception to start on Nov. 1, the sales tax will go into effect on Dec. 1.
Jon Hecht can be reached at 634-8551, or email jhecht@larsonnewspapers.com
