Jan 2026, sales tax collections $2,648,813.94 were higher than Jan 2025 by 5% and the Jan 2026 bed tax $747,536.15 is lower than Jan 2025 by 2%. The combined total Jan 2026 Sales & Bed Tax is $3,396,350.09.  On average, January is the 8th highest month of the year for sales and bed tax combined.  Jan 2026 ranked the 5th highest month in FY26.

January 2026 recorded the highest combined sales and bed tax collections for the month of January in the past 10 years.

Details are below.

Sales Tax & Bed Tax Revenues by Category in Comparison to January 2025

• Construction – up 65%
• Communications & Utilities – up 10%

Out of $3,396,350.09 received in January’s tax reporting, $3,082,525.59 is attributed to January sales, the remainder is either from prior months or misfilings. 

Construction was up 65% in January 2026 which could be influenced by weather conditions and/or seasonal and scheduling factors. 

Communications & Utilities increased 10% in January 2026, which may reflect overall economic activity and consumer demand in Sedona.

Although January 2026 was down -2% in bed tax returns compared to January 2025, we do not believe this is reflective of negative business performance within our lodging industry. A combination of missing payments from hotels in January 2026 and back payments from hotels in January 2025 are the leading cause for the variance. Should those delinquencies not have been present, January would have observed a positive month in bed tax remittance.

 Sales & Bed Tax Revenues by Month

• Monthly budgets are based on a seasonally adjusted average of historical collections.
• Year-to-date sales tax is higher than budget expectations by 12%
• Year-to-date bed tax is higher than budget expectations by 12%.

FY26 year-to-date increases (decreases) over FY25 for the same period:

January 2026 Sales & Bed Tax Report