Arizona

Approximately half (50.6% in 2002) of state tax revenues are raised by the Arizona's general sales tax, and approximately a quarter (24.6% in 2002) by the state's personal income tax. The state general sales tax rate is 5.6% (with exemptions for food and prescription drugs), and localities can impose up to 3% additional sales tax producing a maximum 8.6%. The personal income tax has five brackets ranging from 2.87% (up to $10,000 taxable income) to 5% (above $150,000). Selective income taxes (excises) accounted for 12.6% of state tax collections in 2002, and cover motor fuels, tobacco products, insurance premiums, alcoholic beverages, public utilities, pari-mutuels, and amusements. Arizona's corporate income tax is a flat 6.968% on net income, and in 2002 accounted for 4% of state tax collections. Various license and franchise fees accounted for 3.2% of state collections in 2002, and death and gift taxes, a little less than 1%. In 2003, Arizona ranked 14th among the states in total state and local tax burden, which amounted to 9.9% of personal income, a little above the national average of 9.7%.

State tax receipts for the general fund in 1999 came to slightly more than $5.6 billion, compared to $8.48 billion in 2002.

The following table from the US Census Bureau provides a summary of taxes collected by the state in 2002.