1. Brief Overview of how Arizona taxes and tax giveaways
Arizona Revenues
Brief Overview of how Arizona taxes and tax giveaways

3. Notice
No State revenue from property tax

4. Constitutional Spending Limit = 7.41% of Total State Personal Income

5. Constitutional Spending Limit = 7.41% of Total State Personal Income
4.2% =$ 2 Billion More

6. Revenue Cuts
Arizona has cut some form of taxes in 27 of the last 28 years
Every year except 2003
This occurred even during the Recession
Schools Budgets cut during recession
The value of these cuts, when adjusted for inflation and population growth, is approximately $4 Billion

7. Revenue Cuts The elimination of the state property tax in 1997
Property tax now funds school funding formula
Capped at QTR (qualified tax rate)
A substantial reduction in individual income tax rates in 2005
Reductions in the corporate income tax rates
Phased in over several years ( )
Now at 4.9%

8. Ways State Revenues are Cut
Income tax rate reductions
Individual/corporate
TPT exemptions
Tax Credits
Tax deductions

9. 6.968%
4.90%

10. From 6.97% to 4.9% (2.07% cut)
30% Cut In Corporate Income Tax Rate

11. Millions

12. Billions

13. $9.66
$9.62
Billions

14. Transaction Privilege Tax (TPT)
Sales tax
Vendors pay tax (tpt) in order to due business in AZ
Collected by ADOR for state/counties/cities
Passes on to consumer
Az tpt rate is 5.6%
Counties and cities may add onto this
All 15 counties do

15. Transaction Privilege Tax (TPT)
Hundreds and Hundreds on the books
Just a few recently passed
Fine art
Jet fuel
Jet timeshares
Jet storage
Coal tpt repealed

16. Transaction Privilege Tax (TPT)
Sometimes TPT exemptions sound good but really aren’t

17. Transaction Privilege Tax (TPT)
Sometimes TPT exemptions sound good but really aren’t
At least right now

18. Transaction Privilege Tax (TPT)
Sometimes TPT exemptions sound good but really aren’t
Diaper tpt exemption
Cost state revenue $11-30 million
Could be used for
tANF funding ($5m to expand additional year)
Childcare subsidies
Are we really helping those that need it most

19. Tax deductions/exemptions/credits
Reduces your taxable income
Personal/dependents
Deduction
Charitable donations/Medical costs
Credits
$ for $ reduction in tax burden
STO’s/Public Schools

20. Examples of recent enacted changes resulting in decreased state revenues
Tax exemption
2017 – increased personal exemption by $50 per year for next 3 years
Cost to state revenue - $10 Million
In pocket tax savings for each Arizonan - $4

21. Examples of recent enacted changes resulting in decreased state revenues
Tax credits
Increased charitable tax credit to $800 (from $400)
Sto’s
Started in 98
To help low income families have the choice to attend private school
Not doing that
Around 40% go to low income/60% go to middle or high income

22. Revenue Cuts
What have we received in return for years of tax cuts/Giveaways?
Less investment
less services provided
and more debt
$1 billion rollover payment due to K-12
$2 Billion SFB lawsuit pending

23. Prop 301 reauthorization Not a renewal
Legislature Reauthorized the 0.6 cent sales tax
Legislature reauthorized funds distribution
Legislative action has Very important implications

24. Prop 301 reauthorization No longer voter protected
Not a renewal
Legislature Reauthorized the 0.6 cent sales tax
Legislature reauthorized funds distribution
Legislative action has Very important implications
No longer voter protected
Legislature can manipulate finds distribution with a simple majority vote