State and local tax revenue are classified into two categories: General Fund and Special Revenue. The General Fund pays for important services such as public safety, libraries, parks and senior centers.
What does Arizona sales tax pay for?
Overall, use tax is an important source of revenue for the Arizona General Fund. Every dollar collected is a dollar available for government and public services. Equally as important, uniform collection and enforcement of use tax provides for fair competition between out-of-state and Arizona-based businesses.
Where does revenue from sales tax go in Arizona?
All use tax revenues are deposited into the general fund except for 20 percent of the use tax revenue collections from the sale of electricity that are deposited into the distribution base.
Where do Arizona state taxes go?
In Arizona in fiscal year 2015, 59.1 percent of total tax revenues came from sales taxes and gross receipts. Income taxes accounted for 30.9 percent of total state tax collections. Education accounted for 27 percent of state expenditures in fiscal year 2015, while 30.3 percent went to Medicaid.
What is Phoenix City sales tax used for?
The Phoenix tax rate is 2.3% on most business activities such as Amusements, Construction Contracting, Speculative Builders, Owner-Builders, Job Printing, Publishing, apartment or other Residential Real Estate Property Rental, Rental of Tangible Personal Property (except for Short-Term Motor Vehicle Rental),
What services are taxable in Arizona?
Traditional Goods or Services Purchases of physical property like furniture, home appliances, and motor vehicles, are subject to sales tax in Arizona. Arizona does not charge sales tax on the purchase of groceries, prescription medicine, or gasoline.
Is SaaS taxable in AZ?
Arizona does impose sales and use tax on SaaS and cloud computing. Prewritten computer software or “canned software,” which includes software that may have originally been written for one specific customer but becomes available to others, are also taxable and considered sales of tangible personal property.
How are city budgets funded?
The Capital Budget is supported through multiple funding sources, including different types of bonds (debt), grants and cash as well as other smaller sources of funding. The Operating Budget includes personnel costs and annual facility operating costs.
What does the Arizona county property tax fund?
Primary property taxes pay for the operation budget and maintenance of state and local governments. The secondary property taxes fund voter approved items (such as school budget overrides) and special district levies.
Is Arizona a destination or origin based sales tax?
Since Arizona is origin based for remote sellers, charge sales tax according to Arizona’s rates. Usually, remote sellers use the destination-based system. If you sell to a customer in a state where you are a remote seller, you charge according to the customer’s state rate.
Who funds the Arizona state sales tax?
The largest source of funding for state agencies is the federal government. Arizona receives nearly $23 billion in federal dollars. The General Fund provides nearly $13 billion. Other funds include $5.9 billion appropriated by the legislature and $11.9 billion non-appropriated funds.
How does the state of Arizona make money?
Arizona’s manufacturing revenues are generated from high tech products like computers, electronic equipment, and aerospace vehicles. Agriculture and mining are also important in Arizona along with cattle ranching.
Who determines Arizona sales tax?
Transaction privilege tax 101 TPT in Arizona is administered by the Arizona Department of Revenue (ADOR). The cost of TPT may be passed on to your customers, but it’s your responsibility to manage your taxes and remain in compliance with state and local laws.
Who collects Phoenix city sales tax?
The Arizona Department of Revenue (ADOR) is tasked in A.R.S. Title 42, Chapter 5, Article 10 with collecting the excise tax (imposed only by the state) and transaction privilege tax (state, counties, and cities) imposed on adult use marijuana sales.
What does Maricopa County sales tax pay for?
Maricopa County adds 0.7% sales tax to support roads and jails. In addition, each city may add sales tax. State of Arizona sales tax (5.6%) and Maricopa County sales tax (0.7%) plus the city sales tax rate equals the amount paid as retail sales tax when purchasing merchandise in that city.
What items are exempt from sales tax in Arizona?
What is exempt from sales taxes in Arizona?
- Clothing. 5.6%
- Groceries. EXEMPT.
- Prepared Food. 5.6%
- Prescription Drugs. EXEMPT.
- OTC Drugs. 5.6%