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Below is a snapshot of key features of Arizona's tax system. (Scroll Down)
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State & Local Revenue (FY10)
- General Revenue, Own-Source (GROS): $28.6 billion
- General Revenue as a Share of Income: 13.3%
- Tax Revenue: $19.6 billion
- Tax Revenue as Share of income: 9.1%
- Personal Income Tax (Share of Tax Revenue): 12.3% (41 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 2.1 % ( 36 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 44.3 % ( 12 out of 51)
- Property Tax (Share of Tax Revenue): 37.3 % ( 17 out of 51)
- Other Taxes (Share of Tax Revenue): 3.0 % (43 out of 51)
Personal Income Tax Features (2012)
- Range of Tax Rates: 2.59% - 4.54%
- Standard Deduction: $4,703 ($9,406 for Married Couples) (2011)
- Personal Exemption: $2,100 (Extra $2,100 for Married Couples With Children and Heads of Housholds)
- Dependent Exemption: None
- Earned Income Tax Credit (EITC): None
- Notable capital gains preference
- Deduction for state income taxes paid
- Offers low-income credit designed to offset personal income taxes
Corporate Income Tax Features (2012)
- Range of Tax Rates: 6.968%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: Yes
- Apportionment Factor (Payroll): 25%
- Apportionment Factor (Property): 25%
- Apportionment Factor (Sales): 50%
- Apportionment Note: Certain corporations may use 10% payroll / 10% property / 80% sales formula
Sales Tax Features (2012)
- State Sales Tax Rate: 6.60%
- Average Local Sales Tax Rate: 1.55%
- Average Combined State & Local Sales Tax Rate: 8.15%
- State Sales Tax Treatment of Groceries: Exempt
- Local Sales Tax Treatment of Groceries: Taxed
- Number of Services Taxed: 55 out of 168 surveyed
- Streamlined Sales Tax Membership: No
- Sales tax rate will fall to 5.6% in June 2013
- Vendor Compensation available with high ceiling
- Sales tax is actually a Gross Receipts Tax (GRT)
Property Tax Features (2012)
- Fails to provide a notable, all-ages circuit breaker.
- Levies a modest statewide property tax.
- Utilizes split roll system.
Other Tax & Revenue Features (2012)
- Gasoline Tax Rate (per gallon): $0.19
- Diesel Tax Rate (per gallon): $0.19
- Cigarette Tax Rate (per pack): $2.00
- Estate or Inheritance Tax: No
- Net Lottery Sales Per Capita: $80
Tax Policy Oversight
- Tax Expenditure Report: Yes
- Tax Incidence Analysis Capability: Personal income tax only
Last Updated October 4, 2012
Sources & Glossary
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