I have a received a demand letter from the Arizona Dept. of Revenue apparently on behalf of the city of Sedona for the Transactional Privilege Tax
of City Use Tax
) based on the purchase of a motorhome. I believe this was triggered by the city of Sedona requiring us
to have a business license for renting out our personal
residence. This house has been rented out since Sept. 2009 when we moved to the UK. We purchased the motorhome in September 2014 during our annual home leave at the Hershey Pennsylvania RV show from A New York state
dealer. The dealer and the finance company insisted that we use our last US address for registration and financing purposes, which was the Sedona address, but we had no intention of returning to Arizona. I was extremely annoyed that I had to pay the confiscatory taxes and registration fees to Arizona but we had already committed to the purchase of the motorhome.
When we retired and returned to the US this past February, we established residency in South Dakota including re-registered the motorhome there, so it has no connection at all to our so-called “business” in Sedona. The motorhome never even been there! We are living in it full time and plan to travel around North America (Arizona excluded, of course!)
So, do you agree that we should not have to pay this City Use Tax?
Thanks in advance for your advice/opinion
Dale & Glenda Nelson