ARIZONA DEPARTMENT OF REVENUE FISCAL YEAR 2016 ANNUAL REPORT Directors Message Upon my arrival, among the first activities we took was to align our core programs with the agency’s budget, which immediately helped to stabilize department expenditures and reduced the number of operating divisions from nine to four. We improved key support functions by overhauling our information technology and budget offices and establishing a professional communications presence for enhanced dialogue with our customers and employees. During FY 2016, we set the foundation for landing the first phase of statutorily required reforms of the state’s Transaction Privilege Tax (TPT) system, enabling hundreds of thousands of businesses to register, file returns and make TPT payments via a central online portal with prompt and accurate tax distribution and reporting to appropriate municipalities. We also instituted a standard, disciplined approach to manage the department’s performance using tools such as scorecards and monthly business reviews to align our mission priorities with those the governor has set for the state. These activities are a featured component of the intentional, results-driven management system Arizona is adopting throughout state government. Our efforts are focused on delivering customer value and tangible mission outcomes that taxpayers expect of their state workforce. Today we are professionally managing the department’s operations by eliminating waste and inefficiencies through an exhaustive review of our processes, and every DOR employee understands the importance of being responsive to customer needs and expectations. The need to modernize and develop technical and operational excellence in our workforce is crucial if we are to operate at the speed of business, as the governor intends. In addition to the organizational improvements mentioned earlier, we have begun taking steps to ensure we build capacity to deliver desired performance by making investment in core infrastructure a departmental priority. FY 2016 was one of the most exciting and productive years in my 30-year career of public service for the citizens of Arizona. I’m proud of the changes we are making to radically transform how DOR thinks and does business for Arizona taxpayers. As you read through our record of fiscal year successes, I hope you will think so, too. David Briant Director Arizona Department of Revenue Who We Are Our History The Department of Revenue’s origins predate Arizona statehood. The State Tax Commission, established in 1912, consisted of a three-member, non-partisan board elected for a six-year term. In 1974, the Arizona Legislature repealed the law that had established the commission and transferred its powers and duties to the newly created Arizona Department of Revenue (ADOR) and the State Board of Tax Appeals. That same year, on July 1, ADOR began operations with three divisions overseeing Property and Special Taxes; Income, Luxury, Sales and Estate Taxes; and Administration. Today, ADOR comprises four divisions aligned with its operating budget and strategic goals: Taxpayer Services, Education and Compliance, Processing, and Support. It operates with offices in Phoenix and Tucson with a presence in the Phoenix Metro East Valley area. ADOR delivers core business processes entailing efficient tax processing and collection, timely enforcement of tax laws, and accurate valuation of property. In addition, it also oversees 15 county assessors in the administration of state property tax laws. Our Mission & Vision Pursuant to Arizona Revised Statutes (A.R.S.) Titles 42 and 43 Our Mission: Serving taxpayers! Our Vision: Funding Arizona’s future through excellence in innovation, customer service and continuous improvement Our Goals & Strategies Goals Optimize taxpayer services Accelerate processing Maximize taxpayer education and compliance Support and champion the agency mission (internal only) Strategies Deploy the Arizona Management System Develop employee potential Increase education and outreach Modernize and strengthen core programs and infrastructure Deliver technology solutions Performance Measures Customer phone call wait time Number of individual and Transaction Privilege Tax (TPT) paper returns Average days to process individual income tax refunds from electronic returns Average days to process TPT electronic returns Percentage of online transactions TPT return filing compliance Individual income tax fraud prevention Actual vs. estimated state tax collections Number of administrative rules improved or repealed Number of agency FTE count Number of regrettable attrition Percentage of adoption of Arizona Management System Number of breakthroughs achieved Percentage of online services What We Do Taxpayer Services Taxpayer services include the following for customers with inquiries and requests on various tax related matters. Customer Care & Outreach Problem Resolution Office Educates taxpayers and staff about the Responds to taxpayer inquiries and resolves department’s issues and problems that could not be laws, rules and programs; responds to inquiries and provides assistance; issues licenses and registrations; updates taxpayer account information. addressed through standard business channels. Property Tax Ensures fair and uniform property values for Economic Research and Analysis Arizona taxpayers through general oversight of Provides statistical analysis and research services, the 15 county assessors administering Arizona’s including fiscal impact of proposed changes to tax property tax laws. laws; assists in developing tax policy. Tax Appeals Hearing Office Resolves appeals filed by individuals on Holds hearings and issues written decisions on proposed income tax assessments and refund protests of department assessments and refund denials; denials relating to income tax, withholding tax protested audit assessments, refund denials and estate tax. and penalty review denials; reviews and monitors status of non-income defends corporate income tax assessments Legislative Liaison The liaison represents the department at the Legislature. The liaison coordinates the analysis, through the department’s administrative appeals process. research and testimony of tax legislation, reads, Tax Policy analyzes, and tracks bills through the legislative Reviews and analyzes legislation, assists the process; of department in setting tax policy, and develops legislation after passage. Also acts as the liaison and promulgates administrative rules; provides between legislators department policy support and interpretative within the including handling issues department. coordinates implementation and the constituent for legislators and the Governor’s office, and monitoring federal law changes. Tobacco Tax Program Unclaimed Property Administers licensing, processing of returns and Returns abandoned property to the property’s distribution of payments; audits returns of rightful owner(s). Arizona tobacco and liquor distributors; maintains inventory of tobacco tax stamps for sale to Arizona’s licensed cigarette stampers; enforces tobacco luxury taxes; investigates criminal activity. What We Do Processing Processing provides timely and accurate processing of all tax returns and payments. Document Preparation Opens, batches and processes tax documents; handles the department’s mail services; identifies “trouble” documents before data entry occurs. DOR Treasury Responsible for depositing all tax revenue and entering taxpayer data using multiple computer systems. Error Resolution Ensures accuracy in the processing of returns and payments for the largest four tax types. Records Management Responsible for the filing, maintaining, storing and disposal of all tax documents; provides internal access to tax returns and license applications; develops customized records retention and disposition schedules. What We Do Education & Compliance Audit Educates taxpayers and promotes voluntary compliance with tax laws by auditing corporate and individual income tax returns, transaction privilege tax (TPT) and withholding and special taxes; coordinates with cities and towns to ensure timely, accurate distribution and reporting of TPT collections; investigates and prevents fraudulent tax activity. Collections Collects delinquent returns and tax liabilities, educates and assists taxpayers in understanding tax liability, administers a debt setoff program. What We Do Support Budget Financial Services Monitors current year expenditures against Reconciles and reports of tax dollars the deposited to preparation of the upcoming executive institution; manages the budget request. accounting and procurement functions. Communications Human Resources Creates, manages, facilitates and delivers Provides a single point of integration for all the department’s internal and external disciplines of personnel administration; multimedia communications. plans, develops, organizes, and implements Continuous Improvement employee training. approved Provides budget, professional continuous coordinates development improvement, in encourages the State’s financial department’s Information Technology Provides IT security, database and continuous improvement behaviors and application administration and support, promotes measurable results. customer service, project management and Facilities Management business analysis support. Coordinates building facility maintenance, Internal Audit receives/logs Conducts all goods and supplies financial, operational, purchased by the agency, oversees safety investigative and consultative reviews of and risk management. agency practices, policies, and procedures. Our Successes • Transaction Privilege Tax Reform faster and more secure, with improved Traditionally, the Arizona Department of Revenue (ADOR) has functionality enabling taxpayers to view administered filing history and liability information, transaction privilege tax for the counties link accounts, and create an electronic and all but a few so-called “non-program” signature using a personal identification cities, which have administered their own TPT programs. Though few in number, the non-program cities comprise most of number, or PIN. • Arizona, as well as those located outside the state and doing business with Arizona customers, often have had to file TPT returns and payments in multiple TPT reforms adopted by the Arizona consolidated reporting requirements in an effort to simplify the tax system for Arizona’s taxpaying businesses. In FY 2016, ADOR landed the first phase of TPT reform to simplify how taxpayers register, file standards for collections and reporting. • Deploying a geographic information system feature to allow taxpayers to view their TPT rates by address or zip code. Reduced Customer Call Wait Times jurisdictions. Legislature Stabilizing system infrastructure and gaining alignment with stakeholders on Arizona’s population. This has meant that the roughly 200,000 businesses operating in Upgrading AZTaxes to make tax filing returns and make TPT payments via a central online portal, AZTaxes.gov. In addition, the department provided prompt and accurate tax distribution and reporting to municipalities for which the department administers the TPT program. Specific FY 2016 accomplishments that enabled this progress to occur included: At ADOR, daily customer call volumes at peak times can number in the thousands resulting in extended call wait times, in some cases of up to 45 minutes, at which point the phones were programmed to disconnect. Customer feedback revealed that not answering the phone was the department’s number one customer complaint. For this reason, ADOR set a breakthrough performance measure to reduce average customer call wait times to one minute or less. To close the gap between current and desired performance, ADOR studied national best practices and sought expert advice for managing a call center. We unclaimed property in its history, with introduced standard work practices and nearly $55 million in unclaimed assets daily team huddles to solve problems. We returned to Arizona citizens and businesses. improved logistics within the call center and created online, real-time inbound call tracking to better grasp call volumes as they were occurring. This was $12 million more than the FY 2015 total and a 29 percent increase over the previous high. In the past six years, ADOR returned more unclaimed property than the By laying the groundwork for breakthrough previous four decades combined. results in the last half of FY 2016, the Tax Recovery department was able to record a month-todate call rate in September of 28 seconds, far exceeding the intended performance objective. As authorized by state law, ADOR administered in FY 2016 a tax recovery program that enabled individual and business taxpayers who fell behind on their Unclaimed Property tax payments to make good on their ADOR administers a program to collect, obligations while benefiting the state as a safeguard whole through investment of additional and distribute unclaimed property to its rightful owners. Over the past several years, ADOR has refined its internal processes and used innovative outreach strategies to improve the program’s efficiency and effectiveness. For example, using data from another state agency, the department was able to update contact information for unclaimed property owners and sent out over 73,000 notifications to inform them about their assets. Many had no idea the unclaimed property program existed or that they had property to claim. Through tactics like this, in FY 2016 ADOR had the highest single year’s return total of revenue in critical programs. Unlike most of the previous tax recovery programs ADOR has offered, the FY 2016 program included both accounts receivable and unfiled/audit periods. The program ran from September 1 through November 2, 2015. During this limited window, the department approved 2,071 applicants for eligibility in the program and recovered nearly $55.5 million in revenue owed to the state. Tax Fraud Prevention ADOR conducts criminal investigations of tax evasion, improper or fraudulent tax activity, and other related issues. In FY 2016, for the first time, ADOR used state-of-the-art predictive analysis to identify fraud. Staff analytically scored more than 1.6 million electronic income tax refunds, ranking them from high to low probability improved of fraud. investigator This approach efficiency and accuracy as compared to prior years that relied on manual reviews. In addition, ADOR implemented a number of process improvements this year by automating processes and removing manual steps for investigations, which reduced both the time required to adjudicate a tax return and process valid refunds owed to taxpayers. manual adjustments that would have been required to authorize a payment and enabled over 94,000 investigations to be automatically updated. identified nearly 47,000 fraudulent returns and prevented payment of more than $76 million in fraudulent refunds. modernized Debt Set Off application to replace a nearly 20-year-old system that required substantial staff time to manually enter the information we received from client agencies. The former system required four full time staff members to perform input and maintenance. The new system allows client agencies to maintain their own claim inventories via an interactive web application. Additionally, it offers a full suite for reporting information back to the client agencies, which previously had to be Since introduction of the new system in October 2015, ADOR has performed more than $25 million in offsets to client agencies and nearly $15 million in additional offsets to the IRS. To date for the current tax filing season, has During FY 2016, ADOR released a new, compiled by ADOR staff. Automation eliminated more than 340,000 ADOR Debt Set Off Moreover, as a result of efficiency gains, the new system is maintained by one full- and one part-time employees. Agenccy Highliights Total Gro oss Revenue e Collected Transaction Privvilege Tax Inco ome & Withholding Corrporate Oth her Total FY 2015 $7,450,577,341 $4,996,9901,125 $788,991,384 $558,001,963 $13,794,4471,813 FY 2016 $7,773,127 7,691 $5,262,492 2,623 $700,118 8,169 $587,468 8,050 $14,323,206 6,533 Detailed gross revenues are repo orted under TABLE 1 eceived Total Number of Taxx Returns Re 631,661 1 193,894 FYY 2016 1,72 26,887 3,32 23,907 19 93,894 63 31,661 5,87 76,349 Corporate e Income 1,726,8 887 3,323,907 TPT W/H Transaction T Privilege Taxx Individual Inccome Corporate C Withholding W Total T Total Number of Ind dividual and TPT Paper Returns R Receeived (in Miillions) 2.50 2.30 2.10 2.01 1.93 1.90 1.70 1.50 FY15 FY16 FY 20115 FY 2016 2,006,6773 1 1,926,539 Total Number of E-Filed Income Tax Returns Received (in Millions) 2.70 2.64 2.65 2.60 2.55 FY 2015 FY 2016 2,526,171 2,639,449 2.53 2.50 FY15 FY16 Total Number of Individual Income Tax Refunds (in Millions) 2.10 2.08 2.07 2.06 2.04 2.04 FY 2015 FY 2016 2,036,563 2,065,486 2.02 FY15 FY16 Average Time to Issue Tax Refunds (Calendar Days) 10.47 10.50 10.40 10.30 10.22 10.20 FY 2015 FY 2016 10.10 10.22 10.47 10.00 FY15 FY16 Average Days to Process Individual Income Tax Refunds from Electronic Returns (in Calendar Days) 10.00 9.92 9.73 9.75 FY 2015 FY 2016 9.92 9.73 FY 2015 FY 2016 1.35 1.35 9.50 FY15 FY16 Average Days to Process TPT Electronic Returns (in Calendar Days) 1.40 1.35 1.30 1.19 1.20 1.10 FY15 FY16 Online Transactions As interest in online solutions continues to increase with our customers, we expanded our services to accommodate transactions that can be done online. New Users registered in AZTaxes.gov 28,326 Number of logins to AZTaxes.gov 715,970 Number of New Business Licenses Processed New transaction privilege tax licenses are processed at walk-in counters, through the mail and via online services. 45,639 45,500 44,984 FY 2015 FY 2016 45,639 44,984 44,500 FY15 FY16 Actual vs Estimated State Tax Collections (Estimate provided by OSPB) FY 2016 ACTUAL FY 2016 ESTIMATE $8.185 BILLION $8.208 BILLION Dollars Recovered from Individual Income Tax Fraud Prevention (in Millions) 80.0 78.4 75.0 71.0 70.0 65.0 FY15 FY16 FY 2015 FY 2016 71.0 Million 78.4 Million Training Events Conducted 150 121 100 62 50 FY 2015 FY 2016 121 62 0 FY15 FY16 Dollars Returned to Customers from Unclaimed Property (in Millions) 54.9 60.0 50.0 42.7 40.0 30.0 20.0 FY 2015 FY 2016 42.7 Million 54.9 Million FY 2015 FY 2016 575,061 489,367 10.0 0.0 FY15 FY16 Annual Reporting Figures for Customer Care Total Number of Calls Answered Numbers provided are from the Customer Care unit and the Collections unit 600,000 575,061 550,000 489,367 500,000 450,000 400,000 FY15 FY16 Average Number of Phone Calls Received per Month Numbers provided are from the Customer Care unit and the Collections unit 80,000 71,728 60,000 51,341 40,000 20,000 FY 2015 FY 2016 71,728 51,341 FY15 FY16 Average Customer Phone Call Wait Time Numbers provided are from the Customer Care unit and the Collections unit 6:14 6:00 5:45 5:31 5:16 5:02 4:48 6:05 5:16 FY15 FY 2015 FY 2016 6 min 5 sec 5 min 16 sec FY16 FY 2015* FY 2016* 7,463 7,590 Customers Assisted at the Walk-in Counters 37,139 32,504 Customers Assisted at the Walk-in Offices 10,645 10,056 Tax Practitioner Hotline Inquiries 12,655 9,989 Written Inquiries Answered 16,501 16,754 Power of Attorney (POA) Forms Processed 11,964 16,579 1,758 1,308 Emails Answered Switchboard Calls Answered * Numbers provided by ADOR Customer Care unit TABLE 1 REVENUE SUMMARY GROSS REVENUE COLLECTED FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 SOURCE FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $1,569,903,646 $1,644,471,588 $1,750,515,866 $1,836,707,857 $1,907,097,530 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX Distribution Base Nonshared Portion 2,852,297,332 2,994,447,622 3,186,969,414 3,285,088,928 3,368,394,664 Use Tax 263,724,399 257,899,313 235,984,933 281,143,731 283,352,073 Education Tax 542,394,529 567,824,410 601,853,602 626,400,822 645,012,218 Temporary Tax (4) 912,966,857 965,620,521 8,422,920 1,760,338 198,681 20,235,301 (25,356,945) (25,642,747) 62,907 13,607,599 23,913,439 32,116,438 41,685,649 44,364,312 46,467,006 Undistributed Estimated Transaction Privilege Tax Other State Revenue County and City Collections Subtotal 1,145,303,425 1,223,217,366 1,303,960,087 1,375,048,446 1,508,997,920 $7,330,738,929 $7,660,240,313 $7,103,749,724 $7,450,577,341 $7,773,127,691 $3,343,314,942 $3,459,818,705 $3,580,656,587 $3,699,577,473 $3,850,489,512 1,027,389,330 1,170,646,638 1,131,388,277 1,297,323,652 1,412,003,111 INCOME TAX Withholding Individual Corporate Subtotal 758,413,453 755,002,081 705,730,762 788,991,384 700,118,169 $5,129,117,725 $5,385,467,424 $5,417,775,626 $5,785,892,509 $5,962,610,792 LUXURY TAX Spirituous Liquor $31,847,105 $32,184,954 $33,588,102 $33,963,657 $34,551,657 Vinous Liquor 15,430,577 15,155,547 15,583,934 15,624,518 16,160,560 Malt Liquor 21,101,489 21,343,360 21,974,061 21,682,060 21,568,413 337,777,289 331,347,184 327,788,207 331,926,341 341,591,816 7,925 7,825 8,198 6,775 6,625 $406,164,385 $400,038,871 $398,942,502 $403,203,351 $413,879,071 Tobacco - All Types (1) Licensing Subtotal ESTATE TAX Estate (3) Unclaimed Property Escheated Estates Subtotal $200,825 $0 $0 $0 $0 115,160,041 131,397,401 113,119,156 126,763,806 149,833,143 186,322 327,961 649,079 736,221 273,583 $115,547,188 $131,725,361 $113,768,235 $127,500,027 $150,106,726 OTHER REVENUES Bingo $508,145 $519,998 10,585,261 7,375,052 (5) 12,974,652 Private Car Tax 1,065,773 3,698,193 (5) (1,061,682) (5) 3,484,442 Nuclear Plan Assessment 1,782,028 2,153,517 ----- (6) 4,673,096 Flight Property Tax $521,583 (5) $507,212 $476,079 9,727,092 11,114,322 (189,264) (6) 2,412,474 Waste Tire 8,518,868 8,732,325 9,009,694 8,906,743 9,668,642 Subtotal $22,460,074 $22,479,086 $21,444,247 $27,298,585 $23,482,253 TOTAL (2) $13,004,028,301 $13,599,951,055 $13,055,680,334 $13,794,471,813 $14,323,206,533 (1) Figures represent gross tobacco revenue less administrative expenses. (2) All revenues collected by the Department of Revenue, including those which are later refunded or distributed. (3) Arizona's estate tax was effectively repealed January 1, 2005, following the elimination of the Federal State Death Tax Credit by Congress. (4) On May 18, 2010, voters approved Proposition 100 which temporarily increased the state transaction privilege and use tax rates on most transactions by one percentage point beginning June 1, 2010, and ending May 31, 2013. (5) In FY13, $2,473,651.23 of the money deposited into Private Car Tax should have been deposited into Flight Property Tax. A correcting transfer was made in FY14. (6) The Nuclear Plan Assessment revenue was received after the final deposit for FY14. For additional detail on the current year revenue, please refer to the appropriate section within this report. Figures may not add to total due to rounding. TABLE 2 NET REVENUE TO STATE GENERAL FUND FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $3,657,481,499 $3,819,525,185 $4,026,707,269 $4,199,713,199 $4,309,504,675 17,366,617 (21,908,400) (25,642,747) 62,907 13,607,599 Income Tax 3,284,084,523 3,514,487,484 3,445,061,022 3,783,445,387 3,906,333,351 Luxury Tax 56,357,085 56,184,596 58,711,664 56,746,947 58,168,800 0 0 0 0 SOURCE Transaction Privilege, Use, and Severance Tax Undistributed Estimated Transaction Privilege Tax Estate Tax (1) Unclaimed Property Bingo 200,825 45,819,445 60,899,609 49,165,753 54,034,910 64,941,156 508,145 519,998 521,583 507,212 476,079 3,484,442 (189,264) Private Car Tax 1,065,773 3,698,193 (2) Nuclear Plan Assessment 1,782,028 2,153,517 $7,064,665,940 $7,435,560,183 Total (1,061,682) (2) ----- (3) $7,553,462,862 4,673,096 $8,102,668,100 (3) 2,412,474 $8,355,254,870 (1) Arizona's estate tax was effectively repealed January 1, 2005, following the elimination of the Federal State Death Tax Credit by Congress. (2) In FY13, $2,473,651.23 of the money deposited into Private Car Tax should have been deposited into Flight Property Tax. A correcting transfer was made in FY14. (3) The Nuclear Plan Assessment revenue was received after the final deposit for FY14. Figures may not add to total due to rounding. TABLE 3 GROSS COLLECTIONS OF AUDIT ASSESSMENTS AND DELINQUENT TAX FISCAL YEAR 2014-15 AND FISCAL YEAR 2015-16 % GROSS COLLECTIONS FY2014-15 FY2015-16 CHANGE $242,000,155 $242,548,698 0.2% $173,815,515 $176,852,963 $150,495,968 $164,593,032 9.4% $566,311,638 $583,994,693 3.1% Duplication, Credit Audits and Other Adjustments As Reported $25,796,817 $21,697,622 -15.9% TOTAL ADJUSTED NET ENFORCEMENT COLLECTIONS (2) $540,514,821 $562,297,071 4.0% Collections Audit Accounts Receivable TOTAL GROSS COLLECTIONS 1.7% ADJUSTMENTS (1) (1) Audits resulting in credit adjustments are subtracted to produce an actual figure representing the net gain to the state from the Audit Division's efforts. (2) Actual amounts resulting from the department's enforcement effort. TABLE 4 GROSS TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 SOURCE FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 Distribution Base Nonshared Use Tax SUBTOTAL $1,569,903,646 2,852,297,332 263,724,399 $4,685,925,377 $1,644,471,588 2,994,447,622 257,899,313 $4,896,818,522 $1,750,515,866 3,186,969,414 235,984,933 $5,173,470,213 $1,836,707,857 3,285,088,928 281,143,731 $5,402,940,516 $1,907,097,530 3,368,394,664 283,352,073 $5,558,844,267 Education Tax Temporary Tax (2) Temporary Tax Estimated Payment Undistributed Estimated Payment Telecommunications Devices 911 Excise 911 Prepaid Wireless Municipal Water Nursing Facility Assessment (4) Waste Tire Accounts Receivable Collections GROSS STATE COLLECTIONS $542,394,529 912,966,857 2,868,684 17,366,617 4,857,379 16,481,762 ----2,545,748 ----28,550 $6,185,435,504 $567,824,400 965,620,521 (3,448,544) (21,908,400) 4,587,729 16,425,768 ----2,427,127 8,673,285 2,529 $6,437,022,937 $601,853,602 8,422,920 ----(25,642,747) 4,865,666 17,109,403 ----2,428,062 17,262,306 20,212 $5,799,789,636 $626,400,822 1,760,338 ----62,907 4,852,778 15,959,537 1,891,140 2,455,869 19,064,855 140,133 $6,075,528,895 $645,012,218 198,681 ----13,607,599 4,641,805 15,854,142 1,840,984 2,197,353 21,932,723 0 $6,264,129,771 Municipal Privilege Tax (5) Apache County Excise Tax Cochise County Excise Tax Coconino County Excise Tax Coconino County Jail Tax Coconino County Capitol Projects Tax (3) Coconino County Road Tax (1) Gila County Excise Tax Gila County Road Tax (3) Gila Road Extension Tax (1) Graham County Excise Tax Greenlee County Excise Tax La Paz County Excise Tax La Paz County Jail Tax La Paz County Health Services District (3) La Paz County Judgment Tax Maricopa County Road Tax (3) Maricopa County Road Tax Extension Maricopa County Stadium Tax (3) Maricopa County Jail Tax Maricopa County Rental Car Surcharge Mohave County Excise Tax Navajo County Excise Tax Pima County Hotel Tax Pima County Rental Car Surcharge Pima County R.V. Surcharge Pima County Road Tax Pinal County Excise Tax Pinal County Health Services District Pinal County Road Tax Santa Cruz County Excise Tax Santa Cruz County Jail Tax Yavapai County Excise Tax Yavapai County Jail Tax Yuma County Excise Tax Yuma County Jail Tax Yuma County Capitol Projects Tax (3) Yuma County Health Services District Sports & Tourism Authority COUNTY AND CITY COLLECTIONS $466,896,627 1,189,314 6,891,804 11,297,308 11,295,614 2,814,563 ----2,779,139 2,879,485 ----1,798,603 1,495,734 1,120,855 1,120,853 21 590,955 178,724 323,991,403 174 117,547,456 5,191,681 5,396,008 6,246,077 6,311,778 1,463,761 145,559 67,504,860 12,449,204 2,468,346 12,952,327 2,646,194 2,641,677 12,400,793 6,199,337 11,230,569 11,230,580 18,947 2,235,486 22,681,609 $1,145,303,425 $506,978,968 1,115,268 6,997,151 11,666,641 11,660,897 2,913,345 ----2,899,476 3,005,463 ----1,957,102 2,088,094 1,131,747 1,131,743 32 1,112,052 (93,903) 341,670,551 1 124,019,899 5,254,869 5,747,761 6,239,089 6,030,600 1,398,973 136,195 70,893,757 12,761,984 2,541,837 13,300,223 2,595,978 2,594,044 13,308,847 6,653,214 11,610,142 11,610,076 16,966 2,311,386 27,956,898 $1,223,217,366 $546,725,301 1,308,856 6,928,647 12,245,309 12,243,833 3,058,840 ----3,045,271 3,131,228 ----2,130,788 2,345,102 1,165,099 1,165,098 26 2,215,639 (127,766) 365,688,468 6 133,581,417 5,387,697 6,263,993 6,667,433 6,290,212 1,389,855 121,726 72,390,485 13,594,230 2,713,674 14,110,597 2,685,361 2,684,802 14,145,870 7,072,702 11,710,103 11,710,110 3,243 2,526,105 25,640,725 $1,303,960,087 $583,920,974 1,213,088 7,102,794 13,418,497 13,414,793 1,301,271 2,973,234 2,830,513 1,809,066 1,131,853 1,937,227 1,491,594 1,150,267 1,150,262 6,641 2,217,941 (144,505) 382,335,381 41 140,021,448 4,906,997 6,337,181 6,674,867 6,160,652 1,384,095 137,298 74,197,062 13,936,172 2,778,759 14,450,578 2,504,647 2,503,979 14,951,596 7,474,794 11,857,358 11,859,175 13,600 2,427,008 31,210,248 $1,375,048,446 $661,959,571 1,270,948 6,643,893 14,098,449 14,098,398 22,333 8,383,982 2,753,057 (29,783) 29,110,251 1,817,098 1,082,154 1,214,082 1,214,081 316 2,391,850 56,955 396,752,859 7 145,509,977 4,798,661 6,351,163 6,365,510 6,668,021 1,467,710 144,535 75,057,037 14,512,165 2,884,216 15,394,520 2,654,133 2,653,509 16,014,676 7,996,006 12,141,266 12,140,191 9,010 2,705,311 30,689,801 $1,508,997,920 TOTAL DEPARTMENT OF REVENUE RECEIPTS $7,330,738,929 $7,660,240,303 $7,103,749,723 $7,450,577,341 $7,773,127,691 (1) The tax was in place for only a portion of the fiscal year. This figure does not represent a full year's collection. (2) On May 18, 2010, voters approved Proposition 100 which temporarily increased the state transaction privilege and use tax rates on most transactions by one percentage point beginning June 1, 2010, and ending May 31, 2013. (3) This county tax has expired. Collections are from periods prior to the expiration. (4) Laws of 2012, Chapter 213 established a Nursing Facilitiy Assessment to be remitted to the Department of Revenue on a quarterly basis. The FY13 figure represents a partial year's collection. (5) The Municipal Collection program expanded to more cities in FY15 and FY16. TABLE 5 STATE TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX RATES BUSINESS CODES AND TAX RATES FISCAL YEAR 2015-16 DISTRIBUTION TAXABLE ACTIVITIES TOTAL BASE NONSHARED EDUCATION TAX 1.0% 2.125% 0.0% 3.125% 4. Utilities 1.0% 4.0% 0.6% 5.6% 5. Communications 1.0% 4.0% 0.6% 5.6% 6. Transporting 1.0% 4.0% 0.6% 5.6% 1.0% 4.0% 0.6% 5.6% 1.0% 4.0% 0.6% 5.6% 10. Printing 1.0% 4.0% 0.6% 5.6% 11. Restaurants and Bars 2.0% 3.0% 0.6% 5.6% 12. Amusements 2.0% 3.0% 0.6% 5.6% 14. Personal Property Rentals 2.0% 3.0% 0.6% 5.6% 15. Contracting 1.0% 4.0% 0.6% 5.6% 17. Retail 2.0% 3.0% 0.6% 5.6% 19. Mining Severance 2.0% 0.5% 0.0% 2.5% 2.75% 2.75% 0.0% 5.5% 0.0% 5.0% 0.6% 5.6% 2. Nonmetalliferous Mining, Oil and Gas Production 7/8. Private Rail Car/Pipelines 9. Publishing 25. Hotel/Motel Tax 29/30. Use and Use Inventory Tax 49. Jet Fuel (per gallon) 51. Jet Fuel Use (per gallon) 315. MRRA $0.0122 $0.0183 $0 $0.0305 $0 $0.0305 $0 $0.0305 0.6% 5.6% 2.0% 3.0% TABLE 6 NET TAXABLE SALES BY TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX CLASSIFICATIONS (1) FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 % OF CLASSIFICATION % OF % OF % OF % OF FY2011-12 TOTAL FY2012-13 TOTAL FY2013-14 TOTAL FY2014-15 TOTAL FY2015-16 TOTAL Transporting $52,136,905 0.06 $41,324,471 0.04 $54,981,256 0.05 $57,587,947 0.05 56,139,179 0.05 Mining, Oil & Gas 105,614,045 0.11 115,774,867 0.12 116,677,749 0.11 111,808,143 0.10 154,946,680 0.14 Mining Severance 1,623,111,320 1.72 1,193,176,084 1.21 1,047,580,204 1.01 994,478,291 0.92 607,840,223 0.55 Utilities 9,474,520,541 10.05 9,900,237,768 10.07 9,923,489,526 9.57 9,856,234,343 9.11 10,031,988,996 9.02 Communications 3,190,962,329 3.38 3,061,730,365 3.12 2,965,233,344 2.86 2,565,400,083 2.37 2,306,785,802 2.07 6,250,408 0.01 5,615,642 0.01 6,498,110 0.01 2,576,932 0.00 Private Car and Pipelines 1,186,118 n/a (2) Publishing 92,504,602 0.10 84,672,718 0.09 101,751,218 0.10 106,356,511 0.10 105,269,735 0.09 Job Printing 252,603,147 0.27 235,348,616 0.24 321,225,074 0.31 259,671,784 0.24 236,323,892 0.21 Restaurants and Bars 9,996,824,507 10.60 10,544,419,377 10.73 11,085,651,538 10.69 12,053,485,604 11.14 12,715,254,185 11.44 Amusements 1,037,058,757 1.10 1,051,580,928 1.07 1,096,945,152 1.06 1,252,513,666 1.16 1,342,699,886 1.21 Commercial Lease (3) 1,209 n/a (2) 1,706 n/a (2) 1,553 n/a (2) 5,572 n/a (2) 1,802 n/a (2) Personal Property Rentals 3,257,587,929 3.46 3,254,821,525 3.31 3,355,048,345 3.23 3,453,882,481 3.19 3,689,976,381 3.32 Contracting 9,543,335,350 10.12 10,092,875,787 10.27 11,269,502,981 10.86 10,653,405,099 9.84 9,601,228,346 8.64 48,178,713,977 51.10 51,276,107,347 52.18 55,257,510,004 53.26 58,463,542,614 54.01 61,614,309,285 55.42 26,816,169 0.02 160,124,937 0.14 2,675,509,733 2.47 2,819,143,473 2.54 Retail MRRA Amount Hotel/Motel ----2,156,863,685 Rental Occupancy Tax (4) Use Tax Use Tax-Utilities TOTAL ----2.29 (2,602) n/a (2) 2,221,059,419 0 ----2.26 n/a (2) 2,334,372,656 (84) 2.25 n/a (2) 0 n/a (2) (503,163) n/a (2) 5,302,843,816 5.62 5,186,464,365 5.28 4,749,508,210 4.58 5,659,093,999 5.23 5,703,364,767 5.13 10,022,025 0.01 10,283,377 0.01 62,511,267 0.06 48,069,635 0.04 38,944,743 0.04 $94,275,887,660 100.00 $98,276,129,127 100.00 $103,747,605,636 100.00 $108,244,359,783 100.00 $111,186,416,081 100.00 (1) Net taxable sales are based upon tax receipts. (2) Percent of total is less than 0.01%. (3) Commercial Lease rate dropped to 0% effective July 1, 1997. (4) Effective November 1, 2006, these rates were repealed. Figures may not add to total due to rounding. TABLE 7 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS BY CLASS FISCAL YEAR 2015-16 DISTRIBUTION CLASSIFICATION TOTAL BASE NONSHARED COLLECTIONS Transporting $561,392 $2,245,567 $2,806,959 Nonmetal Mining, Oil and Gas 1,549,467 3,292,617 4,842,084 12,156,804 3,039,201 15,196,006 100,319,890 401,279,560 501,599,450 23,067,858 92,271,432 115,339,290 25,769 103,077 128,847 Publishing 1,052,697 4,210,789 5,263,487 Job Printing 2,363,239 9,452,956 11,816,195 254,305,084 381,457,626 635,762,709 26,853,998 40,280,997 67,134,994 32 28 60 Rentals of Personal Property 73,799,528 110,699,291 184,498,819 Contracting 96,012,283 384,049,134 480,061,417 1,232,199,304 1,848,516,160 3,080,715,464 3,202,499 4,803,748 8,006,247 77,526,446 77,526,446 155,052,891 Rental Occupancy (10,114) (4,981) (15,095) Use Tax Utilities 389,447 1,557,790 1,947,237 Use Tax 0 283,352,073 283,352,073 License Fees 0 (290,640) (290,640) 1,716,597 2,574,895 4,291,492 Jet Fuel Use Tax 0 805,035 805,035 Non Sufficient Funds 0 67,161 67,161 Mandatory EFT Fees 0 456,776 456,776 5,310 0 5,310 $1,907,097,530 $3,651,746,737 $5,558,844,267 Mining Severance Utilities Communications Private Car and Pipelines Restaurants and Bars Amusements Commercial Lease (1) Retail MRRA Amount Hotel/Motel Jet Fuel Tax Other TOTAL (1) Commercial Lease rate dropped to 0% effective July 1, 1997. Figures may not add to total due to rounding. TABLE 8 DISTRIBUTION OF TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS FISCAL YEAR 2015-16 Net Regular to State General Fund $4,309,504,675 Net Estimated Payments to General Fund 13,607,599 Net to Cities 476,774,383 Net to Counties 772,565,210 Net to Education Fund 645,012,218 Net to Temporary Tax 198,681 911 Wireline/Excise, 911 Wireless, Telecommunications Devices, Nursing Facility TOTAL GROSS COLLECTIONS 46,467,006 $6,264,129,771 ADDITIONAL DISTRIBUTION FROM TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS FISCAL YEAR 2015-16 Phoenix International Raceway - Highway Improvements Rio Nuevo $416,667 13,008,813 Sports and Tourism Authority 8,764,641 Tribal Community Colleges 2,625,000 Convention Center Distribution adjustments for city collections Figures may not add total due to rounding. 20,449,000 (13,112) TABLE 9 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN APACHE COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $16,972,319 -2.8% $848,616 17,008,997 -16.4% 850,450 108,093 NA 5,405 96,491 -16.6% 4,825 21,358,365 41.6% 1,067,918 1,933,740 NA 96,687 Utilities Communications Printing Publishing Restaurants and Bars Amusements Rentals of Personal Property 8,757,635 1.3% 437,882 23,800,694 -51.7% 1,190,035 125,072,059 9.6% 6,253,603 1,346,804 NA 67,340 Hotel/Motel 17,178,760 74.5% 944,832 Other Taxable Activities (2) 90,237,731 NA 3,977,834 $323,871,688 1.6% $15,745,425 Contracting (All) Retail MRRA TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities FY2013-14 FY2014-15 FY2015-16 21 22 15 113 106 115 Publishing 14 14 10 Job Printing 9 10 9 Restaurants and Bars 67 71 68 Amusements NA NA 9 Rentals of Personal Property 162 162 172 Contracting (All) 446 433 296 1,699 1,848 2,048 46 48 51 1,011 1,054 1,106 3,588 3,768 3,899 Communications Retail Hotel/Motel Other Taxable Activities (2) TOTAL (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY16, different categories have been classified under the Other Taxable Activities compared to FY15. Figures may not add to total due to rounding. TABLE 10 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN COCHISE COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $165,533,844 4.1% $8,276,692 43,100,814 -4.2% 2,155,041 1,150,201 17.7% 57,510 854,753 -5.7% 42,738 143,719,235 3.0% 7,185,962 Utilities Communications Publishing Job Printing Restaurants and Bars Amusements 5,765,178 6.5% 288,259 Rentals of Personal Property 23,621,583 8.0% 1,181,079 Contracting (All) 91,046,906 -41.4% 4,552,345 811,969,290 -4.1% 40,598,465 3,081,840 NA 154,092 Hotel/Motel 33,240,387 1.0% 1,828,221 Other Taxable Activities 61,870,000 -11.4% 3,076,806 $1,384,954,031 -6.2% $69,397,210 Retail MRRA TOTAL . NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications FY2013-14 FY2014-15 FY2015-16 54 51 49 198 190 188 Publishing 26 20 21 Job Printing 17 16 22 338 341 322 54 55 50 Restaurants and Bars Amusements Rentals of Personal Property 355 350 375 Contracting (All) 1,064 984 618 Retail 3,872 4,086 4,378 Hotel/Motel Other Taxable Activities TOTAL 155 164 174 1,693 1,763 1,866 7,826 8,020 8,063 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. Figures may not add to total due to rounding. TABLE 11 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN COCONINO COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications Publishing Job Printing Restaurants and Bars Amusements Rentals of Personal Property Contracting (All) Retail MRRA Hotel/Motel Other Taxable Activities TOTAL CALCULATED NET TAXABLE INCOME % CHANGE FROM FY 2014-15 COLLECTIONS $179,877,645 49,050,516 2,532,401 2,563,361 467,310,886 94,459,851 75,241,865 262,603,533 1,242,425,250 6,720,463 380,788,686 141,936,700 1.9% -10.8% 58.2% -12.8% 10.0% 6.6% 1.0% -16.8% 8.2% NA 12.1% 19.6% $8,993,882 2,452,526 126,620 128,168 23,365,544 4,722,993 3,762,093 13,130,177 62,121,262 336,023 20,943,378 6,962,627 $2,905,511,157 5.8% $147,045,294 NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications Publishing Job Printing Restaurants and Bars Amusements Rentals of Personal Property Contracting (All) Retail Hotel/Motel Other Taxable Activities TOTAL FY2013-14 FY2014-15 FY2015-16 44 234 35 44 507 87 448 1,673 4,980 328 2,032 44 236 39 41 535 100 505 1,595 5,271 342 2,219 41 233 30 45 535 97 535 1,029 5,686 409 2,388 10,412 10,927 11,028 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. Figures may not add to total due to rounding. TABLE 12 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN GILA COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $95,708,868 -9.2% $4,785,443 16,848,699 -5.0% 842,435 581,718 -2.1% 29,086 71,306,882 6.0% 3,565,344 2,617,393 -0.5% 130,870 Utilities Communications Publishing Restaurants and Bars Amusements Rentals of Personal Property 11,336,306 -1.5% 566,815 Contracting (All) 31,673,346 -43.8% 1,583,667 300,627,971 5.8% 15,031,399 Retail MRRA 318,871 NA 15,944 Hotel/Motel 14,443,776 10.0% 794,408 Other Taxable Activities (2) 65,134,558 NA 2,263,885 $610,598,388 -9.7% $29,609,295 TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS FY2013-14 FY2014-15 FY2015-16 30 28 32 161 153 152 17 19 15 162 169 172 29 29 29 Rentals of Personal Property 234 246 255 Contracting (All) 800 778 463 2,402 2,612 2,824 Utilities Communications Publishing Restaurants and Bars Amusements Retail Hotel/Motel Other Taxable Activities (2) TOTAL 69 69 74 1,182 1,204 1,321 5,086 5,307 5,337 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY15, different categories have been classified under the Other Taxable Activities compared to FY14. Figures may not add to total due to rounding. TABLE 13 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN GRAHAM COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS Communications $9,867,396 -7.2% $493,370 Restaurants and Bars 34,506,404 -0.3% 1,725,320 Rentals of Personal Property 11,265,828 -36.6% 563,291 Contracting (All) 12,080,747 -48.3% 604,037 222,690,654 -5.5% 11,134,533 535,344 NA 26,767 6,288,563 NA 345,871 130,501,265 NA 5,150,152 $427,736,201 -0.4% $20,043,341 Retail MRRA Hotel/Motel Other Taxable Activities (2) TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS FY2013-14 FY2014-15 FY2015-16 118 119 117 64 68 66 Rentals of Personal Property 164 178 183 Contracting (All) 356 316 195 1,596 1,697 1,949 979 1,004 1,112 3,277 3,382 3,622 Communications Restaurants and Bars Retail Other Taxable Activities (2) TOTAL (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY16, different categories have been classified under the Other Taxable Activities compared to FY15. Figures may not add to total due to rounding. TABLE 14 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN GREENLEE COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $3,281,687 -8.7% $164,084 Restaurants and Bars 5,462,103 -1.6% 273,105 Rentals of Personal Property 1,314,839 -85.8% 65,742 Contracting (All) 5,143,479 -87.0% 257,174 103,712,212 -28.3% 5,185,611 94,676 NA 4,734 1,400,052 NA 77,003 497,004,205 NA 15,208,091 $617,413,252 -21.2% $21,235,544 FY2013-14 FY2014-15 FY2015-16 Communications 62 68 71 Restaurants and Bars 33 26 22 Rentals of Personal Property 86 90 96 Contracting (All) 146 137 79 Retail 754 854 971 Other Taxable Activities (2) 527 545 565 1,608 1,720 1,804 Communications Retail MRRA Hotel/Motel Other Taxable Activities (2) TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS TOTAL (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY16, different categories have been classified under the Other Taxable Activities compared to FY15. Figures may not add to total due to rounding. TABLE 15 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN LA PAZ COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $33,645,896 19.9% $1,682,295 6,203,952 -9.5% 310,198 Utilities Communications Job Printing 28,739 NA 1,437 Publication 38,915 -20.0% 1,946 25,779,160 -1.7% 1,288,958 Restaurants and Bars Amusements Rentals of Personal Property Contracting (All) Retail MRRA Hotel/Motel Other Taxable Activities (2) TOTAL 425,700 -4.3% 21,285 3,656,382 22.6% 182,819 27,871,738 34.8% 1,393,587 141,338,745 5.1% 7,066,937 238,442 NA 11,922 6,950,752 7.9% 382,291 20,746,521 NA 1,035,988 $266,924,943 3.2% $13,379,662 FY2013-14 FY2014-15 FY2015-16 22 22 21 NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications 105 106 107 Publication 13 11 11 Restaurants and Bars 95 108 113 Amusements Rentals of Personal Property Contracting (All) Retail Hotel/Motel Other Taxable Activities (2) TOTAL 10 11 9 148 148 171 357 327 216 1,859 1,932 2,149 55 56 59 771 836 844 3,435 3,557 3,700 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY16, different categories have been classified under the Other Taxable Activities compared to FY15. Figures may not add to total due to rounding. TABLE 16 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN MARICOPA COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $6,388,205,154 2.8% $319,260,258 1,469,627,488 -10.9% 73,481,374 70,109,543 -4.1% 3,505,477 Utilities Communications Publishing Job Printing 190,986,885 -11.0% 9,549,344 Restaurants and Bars 8,806,719,850 5.1% 440,335,992 Amusements 1,015,787,457 7.5% 50,789,373 Rentals of Personal Property 2,826,831,406 6.8% 141,341,570 Contracting (All) 6,907,104,960 -5.5% 345,355,248 42,848,316,823 6.2% 2,142,415,841 109,278,728 NA 5,463,936 Hotel/Motel 1,702,121,118 3.7% 93,616,661 Other Taxable Activities 4,453,988,304 -0.2% 221,720,632 $76,789,077,716 3.9% $3,846,835,709 Retail MRRA TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS FY2013-14 FY2014-15 FY2015-16 Utilities 147 155 134 Communications 697 722 652 Publishing 241 249 208 Job Printing 762 766 741 6,995 6,975 6,972 754 755 732 2,536 2,530 2,511 Contracting (All) 13,700 13,155 8,482 Retail 45,491 46,737 46,370 768 872 987 10,747 11,330 11,296 82,838 84,246 79,085 Restaurants and Bars Amusements Rentals of Personal Property Hotel/Motel Other Taxable Activities TOTAL (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. Figures may not add to total due to rounding. TABLE 17 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN MOHAVE COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $291,261,451 -18.6% $14,563,073 63,495,975 -10.0% 3,174,799 Utilities Communications Publishing 1,214,146 7.7% 60,707 Job Printing 1,903,828 -16.3% 95,191 274,977,641 7.6% 13,748,882 Amusements 15,950,387 10.3% 797,519 Rentals of Personal Property 58,301,634 10.3% 2,915,082 187,954,507 -10.9% 9,397,725 1,566,606,368 5.3% 78,330,318 6,418,283 NA 320,914 53,952,045 8.0% 2,967,362 109,577,318 13.4% 5,253,259 $2,631,613,582 1.2% $131,624,832 FY2013-14 FY2014-15 FY2015-16 59 56 50 186 197 191 Publishing 28 25 24 Job Printing 36 33 32 442 433 440 Restaurants and Bars Contracting (All) Retail MRRA Hotel/Motel Other Taxable Activities TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications Restaurants and Bars Amusements 65 69 73 441 446 490 Contracting (All) 1,350 1,281 927 Retail 5,163 5,366 5,729 154 158 175 2,103 2,199 2,377 10,027 10,263 10,508 Rentals of Personal Property Hotel/Motel Other Taxable Activities TOTAL (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. Figures may not add to total due to rounding. TABLE 18 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN NAVAJO COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $99,130,321 0.5% $4,956,516 37,736,930 -5.1% 1,886,847 Publishing 882,077 14.8% 44,104 Job Printing 795,432 NA 39,772 119,132,543 12.9% 5,956,627 6,230,546 NA 311,527 BUSINESS CLASSIFICATIONS Utilities Communications Restaurants and Bars Amusements Rentals of Personal Property 25,024,698 0.9% 1,251,235 Contracting (All) 89,729,066 -30.0% 4,486,453 840,855,279 -5.2% 42,042,764 Retail MRRA 3,772,349 NA 188,617 Hotel/Motel 38,952,544 7.6% 2,142,390 Other Taxable Activities (2) 44,337,192 NA 2,185,810 $1,306,578,978 -5.0% $65,492,662 TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications Publishing Job Printing Restaurants and Bars Amusements FY2013-14 FY2014-15 FY2015-16 35 36 38 158 160 162 23 22 22 NA NA 25 227 211 209 NA NA 38 Rentals of Personal Property 284 293 316 Contracting (All) 877 859 563 3,018 3,115 3,488 141 143 164 1,417 1,448 1,504 6,180 6,287 6,529 Retail Hotel/Motel Other Taxable Activities (2) TOTAL (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY16 more categories have been classified under the Other Taxable Activities compared to FY15 Figures may not add to total due to rounding. TABLE 19 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN PIMA COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $1,468,756,922 3.1% $73,437,846 329,014,827 -10.8% 16,450,741 Publishing 19,109,387 4.4% 955,469 Job Printing 30,329,356 2.8% 1,516,468 1,761,915,076 4.2% 88,095,754 Amusements 106,024,578 6.7% 5,301,229 Rentals of Personal Property 423,569,687 0.6% 21,178,484 Contracting (All) 927,319,392 -27.8% 46,365,970 8,435,333,419 3.5% 421,766,671 Utilities Communications Restaurants and Bars Retail MRRA 17,025,785 NA 851,289 Hotel/Motel 326,681,764 2.0% 17,967,497 Other Taxable Activities 608,334,792 -19.7% 28,726,913 $14,453,414,983 -0.8% $722,614,331 FY2013-14 FY2014-15 FY2015-16 83 75 80 TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications 333 342 330 Publishing 78 77 69 Job Printing 133 138 131 Restaurants and Bars 1,700 1,767 1,761 Amusements 206 224 222 Rentals of Personal Property 945 969 1,020 Contracting (All) Retail Hotel/Motel Other Taxable Activities TOTAL 4,440 4,269 2,787 14,642 15,016 15,483 292 294 315 4,224 4,473 4,782 27,076 27,644 26,980 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. Figures may not add to total due to rounding. TABLE 20 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN PINAL COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $494,841,937 -0.4% $24,742,097 102,215,548 -9.9% 5,110,777 Publishing 4,546,712 1.2% 227,336 Job Printing 1,702,221 NA 85,111 302,214,599 8.8% 15,110,730 41,117,747 -2.4% 2,055,887 Utilities Communications Restaurants and Bars Amusements Rentals of Personal Property Contracting (All) Retail MRRA Hotel/Motel Other Taxable Activities (2) TOTAL 75,166,002 10.6% 3,758,300 433,207,267 9.2% 21,660,363 1,395,624,607 5.6% 69,781,230 3,441,904 NA 172,095 22,318,247 2.9% 1,227,504 197,336,159 NA 9,185,097 $3,073,732,948 3.4% $153,116,528 FY2013-14 FY2014-15 FY2015-16 82 77 78 218 216 219 31 25 27 NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities Communications Publishing Job Printing ----- 30 37 Restaurants and Bars 430 420 435 Amusements 94 98 97 450 461 488 Contracting (All) 2,833 2,736 1,672 Retail 5,116 5,535 6,045 Rentals of Personal Property Hotel/Motel Other Taxable Activities TOTAL 108 98 111 2,031 2,121 2,355 11,393 11,817 11,564 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY16 more categories have been classified under the Other Taxable Activities compared to FY15. Figures may not add to total due to rounding. TABLE 21 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN SANTA CRUZ COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $50,441,087 3.1% $2,522,054 17,666,390 2.8% 883,320 Publications 93,057 17.1% 4,653 Job Printing 259,199 11.0% 12,960 54,245,246 4.1% 2,712,262 4,277,411 -0.7% 213,871 Rentals of Personal Property 11,637,135 -349.5% 581,857 Contracting (All) 33,806,570 -19.4% 1,690,328 340,372,017 5.3% 17,018,601 Utilities Communications Restaurants and Bars Amusements Retail MRRA 344,163 NA 17,208 Hotel/Motel 13,785,823 3.7% 758,220 Other Taxable Activities 20,945,249 -17.2% 1,046,451 $547,873,346 5.0% $27,461,785 FY2014-15 FY2015-16 TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities FY2013-14 18 16 16 139 138 137 Publications 14 13 11 Job Printing 17 16 17 139 128 127 20 23 21 239 225 255 Communications Restaurants and Bars Amusements Rentals of Personal Property Contracting (All) Retail Hotel/Motel Other Taxable Activities TOTAL 579 534 336 2,374 2,550 2,868 46 50 56 1,052 1,130 1,243 4,637 4,823 5,087 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. Figures may not add to total due to rounding. TABLE 22 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN YAVAPAI COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $342,954,062 4.9% $17,147,703 86,716,929 -3.9% 4,335,846 2,908,479 -2.0% 145,424 Utilities Communications Publishing Job Printing 4,609,217 7.7% 230,461 365,750,931 9.8% 18,287,547 Amusements 33,911,697 22.5% 1,695,585 Rentals of Personal Property 59,921,830 6.4% 2,996,091 Restaurants and Bars Contracting (All) Retail MRRA 380,468,915 -0.7% 19,023,446 1,727,452,948 8.5% 86,372,647 5,344,919 NA 267,246 Hotel/Motel 151,350,305 14.1% 8,324,267 Other Taxable Activities 198,534,573 -24.4% 8,172,886 $3,359,924,805 4.6% $166,999,149 TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities FY2013-14 FY2014-15 FY2015-16 78 84 80 230 253 228 Publishing 53 56 46 Job Printing 63 66 59 642 641 646 Communications Restaurants and Bars Amusements 98 105 101 476 508 501 Contracting (All) 2,326 2,261 1,527 Retail 6,658 6,985 7,353 Rentals of Personal Property Hotel/Motel Other Taxable Activities TOTAL 212 231 255 2,297 2,431 3,099 13,133 13,621 13,895 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. Figures may not add to total due to rounding. TABLE 23 TRANSACTION PRIVILEGE, USE AND SEVERANCE TAX COLLECTIONS (1) IN YUMA COUNTY FOR THE PERIOD BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 TAXABLE ACTIVITIES AND CALCULATED NET % CHANGE BUSINESS CLASSIFICATIONS TAXABLE INCOME FROM FY 2014-15 COLLECTIONS $253,654,235 -1.9% $12,682,712 54,949,654 -4.1% 2,747,483 1,791,312 -6.6% 89,566 Utilities Communications Publications Job Printing Restaurants and Bars 1,739,004 NA 86,950 260,855,263 5.9% 13,042,763 Amusements 13,275,924 -6.7% 663,796 Rentals of Personal Property 74,329,554 73.0% 3,716,478 187,419,651 -22.0% 9,370,983 1,511,911,704 5.0% 75,595,585 2,162,365 NA 108,118 Hotel/Motel 49,690,653 2.7% 2,732,986 Other Taxable Activities (2) 78,413,230 5.6% 3,887,237 $2,490,192,549 2.7% $124,724,656 FY2014-15 FY2015-16 Contracting (All) Retail MRRA TOTAL NUMBER OF ACCOUNTS FISCAL YEAR 2013-14 THROUGH FISCAL YEAR 2015-16 TAXABLE ACTIVITIES AND BUSINESS CLASSIFICATIONS Utilities FY2013-14 35 33 33 200 201 196 Publications 19 15 17 Job Printing NA NA 29 356 341 385 41 47 46 411 416 457 Communications Restaurants and Bars Amusement Rentals of Personal Property Contracting (All) Retail Hotel/Motel Other Taxable Activities (2) TOTAL 957 901 676 4,053 4,273 4,682 102 112 101 1,864 1,958 2,083 8,038 8,297 8,705 (1) License fees, Jet Fuel, Jet Fuel Use, Timber Severance, NSF, and Telecommunications Service Assistance are not included. (2) For FY16 more categories have been classified under the Other Taxable Activities compared to FY15. Figures may not add to total due to rounding. TABLE 24 STATE TRANSACTION PRIVILEGE AND SEVERANCE TAX DISTRIBUTION TO COUNTIES FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 % CHANGE FROM COUNTY FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY 2014-15 Apache $4,148,680 $4,339,846 $4,744,332 $4,839,048 $5,093,593 5.3% Coconino 17,035,207 17,805,463 19,091,249 19,874,734 20,913,297 5.2% Cochise 10,964,080 12,165,517 11,890,286 12,338,129 12,394,000 0.5% Gila 4,614,778 4,752,150 5,116,965 5,291,050 5,309,712 0.4% Graham 3,624,351 3,606,256 3,728,358 3,584,450 3,661,065 2.1% Greenlee 4,376,829 4,983,640 5,091,702 5,537,109 5,254,315 -5.1% La Paz 1,941,213 2,116,238 2,265,894 2,201,275 2,234,314 1.5% Maricopa 398,827,938 416,999,312 446,491,690 473,705,321 495,333,939 4.6% Mohave 17,391,271 18,652,134 20,389,267 20,525,025 20,809,745 1.4% Navajo 9,605,663 10,088,685 10,764,687 10,892,343 10,904,019 0.1% Pima 92,723,932 97,196,166 101,665,722 105,207,881 107,547,188 2.2% Pinal 26,600,160 27,498,147 29,395,885 30,449,266 31,521,458 3.5% 4,062,329 4,216,541 4,450,552 4,453,950 4,683,751 5.2% Yavapai 22,955,984 23,792,545 25,284,422 25,791,153 26,790,047 3.9% Yuma 17,095,552 17,962,799 18,762,967 19,359,619 20,114,766 3.9% $635,967,967 $666,175,440 $709,133,978 $744,050,353 $772,565,210 4.9% Santa Cruz TOTAL Figures may not add to totals due to rounding. CITIES APACHE Eagar Springerville St. Johns COCHISE Benson Bisbee Douglas Huachuca City Sierra Vista Tombstone Willcox COCONINO Flagstaff Fredonia Page Tusayan Williams GILA Globe Hayden Miami Payson Star Valley Winkelman GRAHAM Pima Safford AMOUNT $460,586 $184,890 $328,222 COUNTY TOTAL $973,699 $479,832 $523,037 $1,644,426 $174,025 $4,135,108 $129,640 $352,791 $7,438,859 $6,245,485 $123,984 $685,284 $52,692 $285,840 $7,393,284 $709,329 $62,344 $172,844 $1,443,371 $217,610 $33,240 $2,638,738 $226,143 $903,047 City Distributions are based on relative population. Figures may not add to total due to rounding. TABLE 25 STATE TRANSACTION PRIVILEGE AND SEVERANCE TAX DISTRIBUTION TO MUNICIPALITIES FISCAL YEAR 2015-16 COUNTY COUNTY CITIES AMOUNT TOTAL CITIES AMOUNT TOTAL CITIES Thatcher $459,769 $1,588,959 Tempe $15,357,220 Kearny GREENLEE Tolleson $620,722 Mammoth Clifton $315,057 Wickenburg $603,408 Maricopa Duncan $66,410 $381,467 Youngtown $583,990 $335,826,054 Superior LA PAZ MOHAVE SANTA CRUZ Parker $290,482 Bullhead City $3,728,320 Nogales Quartzsite $346,398 $636,880 Colorado City $454,752 Patagonia MARICOPA YAVAPAI Kingman $2,653,411 Avondale $7,223,264 Lake Havasu City $4,961,508 $11,797,992 Camp Verde NAVAJO Buckeye $4,885,632 Chino Valley Carefree $319,012 Holbrook $476,296 Clarkdale Cave Creek $475,403 Pinetop-Lakeside $404,308 Cottonwood Chandler $22,471,132 Show Low $1,006,843 Dewey-Humboldt El Mirage $3,014,767 Snowflake $527,763 Jerome Fountain Hills $2,131,484 Taylor $388,096 Prescott Gila Bend $182,034 Winslow $910,155 $3,713,460 Prescott Valley PIMA Gilbert $19,942,683 Sedona YUMA Glendale $21,482,333 Marana $3,344,679 Goodyear $6,258,721 Oro Valley $3,886,852 San Luis Guadalupe $525,765 Sahuarita $2,385,534 Somerton Litchfield Park $516,869 South Tucson $533,513 Wellton Mesa $41,651,157 Tucson $49,138,462 $59,289,039 Yuma PINAL Paradise Valley $1,217,296 Peoria $14,658,279 Apache Junction $3,396,781 Phoenix $137,345,431 Casa Grande $4,602,342 Queen Creek $2,547,804 Coolidge $1,118,748 Scottsdale $20,647,067 Eloy $1,571,675 Surprise $11,164,580 Florence $2,449,973 TOTAL COUNTY TOTAL AMOUNT $184,563 $134,943 $4,139,073 $268,351 $17,866,448 $1,960,772 $85,933 $2,046,705 $1,027,544 $1,022,547 $387,458 $1,066,539 $367,947 $41,963 $3,772,975 $3,686,543 $948,696 $12,322,213 $2,659,098 $1,353,100 $272,206 $8,576,180 $12,860,585 $476,774,383 $476,774,383 TABLE 26 MUNICIPAL PRIVILEGE TAX COLLECTION PROGRAM COLLECTIONS BY CITY FISCAL YEAR 2015-16 CITY RATE * (PERCENT) COLLECTIONS CITY RATE * (PERCENT) COLLECTIONS CITY Apache Junction (1) $6,449 Flagstaff (1) $91,607 Avondale 48,642 Florence 2.00 4,279,837 Oro Valley RATE * (PERCENT) COLLECTIONS CITY Nogales RATE * (PERCENT) COLLECTIONS $24,654 Snowflake 2.00 $1,166,728 2.50 16,995,064 Somerton 3.30 1,831,728 Page 3.00 10,282,648 South Tucson 4.50 2,695,303 Paradise Valley 2.50 14,266,529 Springerville 3.00 1,458,728 Parker 2.00 1,314,830 Star Valley 2.00 338,355 Patagonia 3.00 232,412 Superior 4.00 702,561 Payson 2.12 7,269,402 Surprise 2.20 46,725,062 Taylor 2.00 985,310 Benson 3.50 3,857,192 Fountain Hills 2.60 9,214,115 Bisbee 3.50 2,599,502 Fredonia 4.00 325,717 Buckeye 3.00 22,077,790 Gila Bend 3.00 2,138,979 Bullhead City 2.00 11,982,867 Gilbert 1.50 76,950,956 Camp Verde 3.65 3,915,180 Glendale (1) Carefree 3.00 3,382,988 Globe 2.00 3,893,446 Peoria (1) Casa Grande 2.00 21,439,858 Goodyear 2.50 48,730,474 Phoenix (1) Cave Creek 3.00 6,219,567 Guadalupe 4.00 2,442,338 Pima 2.00 378,049 Thatcher 2.50 2,836,172 Hayden 3.00 1,141,453 Pinetop-Lakeside 2.50 3,587,540 Tolleson 2.50 19,548,213 Holbrook 3.00 3,238,229 Prescott (1) 107,582 Tombstone 3.50 996,378 Tucson (1) Chandler (1) 524,581 861,958 198,548 3,836,379 Tempe (1) 624,480 Chino Valley 4.00 5,359,039 Clarkdale 3.00 924,743 Huachuca City 1.50 137,196 Prescott Valley 2.83 18,283,099 Clifton 3.00 584,408 Jerome 3.50 849,016 Quartzsite 2.50 1,249,235 Tusayan 2.00 3,688,478 Colorado City 3.00 341,794 Kearny 3.00 491,859 Queen Creek 2.25 24,307,856 Wellton 2.50 727,674 Coolidge 3.00 4,829,893 Kingman 2.50 16,711,555 Safford 2.50 5,568,176 Wickenburg 2.20 4,239,398 Cottonwood 3.00 13,438,182 Lake Havasu City 2.00 19,943,113 Sahuarita 2.00 7,014,981 Willcox 3.00 2,309,706 Dewey-Humboldt 2.00 559,968 Litchfield Park 2.80 4,682,963 St. Johns 3.00 757,387 Williams 3.50 5,673,514 Mammoth 4.00 213,720 San Luis 4.00 7,508,359 Winkelman 3.50 90,093 Winslow 3.00 5,263,914 Youngtown 3.00 1,568,171 Yuma 1.70 39,885,857 Douglas (1) 32,805 Duncan 2.00 128,150 Marana 2.50 35,083,973 Scottsdale (1) Eagar 3.00 904,082 Maricopa 2.00 10,194,147 Sedona (2) 3.00 7,628,461 El Mirage 3.00 6,922,255 Mesa (1) 578,438 Show Low 2.00 10,652,385 Eloy 3.00 5,561,071 Miami 332,218 Sierra Vista 1.95 17,749,083 2.50 947,476 * Rate shown is the rate charged on Retail transactions. Current rates, are located here: http://www.azdor.gov/Business/TransactionPrivilegeTax/TPTRates.aspx TOTAL 275,300 $661,959,571 (1) Apache Junction, Avondale, Chandler, Douglas, Flagstaff, Glendale, Mesa, Nogales, Peoria, Phoenix, Prescott, Scottsdale, Tempe and Tucson were not officially part of the municipal collection program, however, the Department did collect some local taxes on their behalf during FY16. (2) Effective January 1, 2016, Sedona rejoined the municipal privilege tax collection program. These collections represent a partial year. For those cities who have left the program, collections shown include periods up to the effective date. Figures may not add to total due to rounding. TABLE 27 MUNICIPAL PRIVILEGE TAX COLLECTION PROGRAM FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 FISCAL TOTAL NUMBER OF CITIES YEAR COLLECTIONS IN PROGRAM 2011-12 $466,896,627 73 2012-13 $506,978,968 73 2013-14 $546,725,301 73 2014-15 $583,920,974 76 2015-16 $661,959,571 77 NON PROGRAM CITY MUNICIPAL PRIVILEGE TAX COLLECTIONS (1) APACHE JUNCTION AVONDALE BULLHEAD CITY CHANDLER DOUGLAS FLAGSTAFF GLENDALE MESA NOGALES PEORIA PHOENIX PRESCOTT SCOTTSDALE SEDONA SOMERTON TEMPE TUCSON WILLCOX (1) This is for informational purposes only (2) As reported by the cities. (3) Information provided by the League of Cities (4) Not available at print time. FY 2013-14 (2) $10,962,018 $37,389,523 $10,820,754 $101,290,665 $5,461,114 $27,360,279 $135,267,254 $140,049,323 $10,046,503 $71,237,000 $718,074,238 $28,228,604 $155,705,177 FY 2014-15 (3) $11,580,980 $40,533,299 $11,396,242 $105,852,956 $5,580,504 $32,825,665 $150,445,943 $148,123,750 $9,872,709 $74,223,915 $817,085,000 $29,087,752 $163,869,080 $12,182,879 $16,149,243 did not report $137,074,000 $196,486,876 $2,169,901 $1,630,660 $139,504,000 $207,518,273 $2,212,209 FY 2015-16 (4) (4) DOR Collected $109,505,753 (4) (4) $148,327,201 (4) (4) $79,410,318 (4) (4) $171,117,858 DOR Collected for part of FY16 DOR Collected (4) (4) DOR Collected TABLE 28 INCOME TAX COLLECTIONS FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 PERCENT OF NET COLLECTIONS SOURCE FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $3,343,314,942 $3,459,818,705 $3,580,656,587 $3,699,577,473 $3,850,489,512 (10,751,762) (9,321,721) (11,985,321) (8,309,159) (10,788,368) $3,332,563,180 $3,450,496,984 $3,568,671,265 $3,691,268,315 $3,839,701,144 IN FY2015-16 Withheld from Wages Gross Revenue Refunds and Charge-offs NET 84.6% Individuals & Fiduciaries Gross Revenue $1,027,389,330 $1,170,646,638 $1,131,388,277 $1,297,323,652 $1,412,003,111 Regular Refunds and Charge-offs (1,260,775,055) (1,222,241,845) (1,236,793,482) (1,226,827,539) (1,282,821,144) ($233,385,726) ($51,595,207) ($105,405,205) $70,496,113 $129,181,968 Gross Revenue $758,413,453 $755,002,081 $705,730,762 $788,991,384 $700,118,169 Refunds and Charge-offs (110,525,973) (92,975,683) (130,546,886) (125,987,439) (129,569,987) $647,887,480 $662,026,398 $575,183,876 $663,003,945 $570,548,182 12.6% $3,747,064,934 $4,060,928,175 $4,038,449,937 $4,424,768,372 $4,539,431,293 100.0% Urban Revenue Sharing $424,423,442 $513,584,045 $561,001,195 $608,935,729 $605,634,332 Child Abuse Prevention 156,194 158,556 169,215 172,806 202,972 Veterans' Donation Fund 97,546 103,323 124,316 121,994 145,306 Solutions Teams Assigned to Schools (1) 67,806 84,949 34,373 27,898 28,737 122,343 115,625 133,220 131,840 154,485 NET 2.8% Corporations NET Subtotal Net Collections Less distributions for: Domestic Violence Shelter Special Olympics Wildlife Contributions Neighbors Helping Neighbors 74,582 63,923 73,088 76,482 82,672 154,626 143,775 169,110 165,427 193,882 31,315 32,549 34,364 30,122 35,569 6,273,004 579,740 76,503 36,555 18,385 43,577 40,660 39,299 42,494 500 ----- ----- ----- 40,936 72,692 I Did Not Pay Enough Fund 14,523 15,124 15,244 25,466 10,083 Democratic Party 11,597 11,266 11,274 9,508 11,140 Libertarian Party 568 444 847 519 393 Republican Party 8,649 5,986 5,696 4,792 5,626 Green Party 638 518 415 240 667 Americans Elect ----- 210 756 177 502 31,500,000 31,500,000 31,500,000 31,500,000 26,500,000 $462,980,411 $546,440,691 $641,322,984 $633,097,943 $3,284,084,523 $3,514,487,484 $3,445,061,022 $3,783,445,387 $3,906,333,351 WQARF Distribution $7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 Sports and Tourism Authority $6,168,488 $5,337,915 $5,519,253 $6,987,979 $7,080,929 Use Tax on Income Tax Return (4) $1,705,724 $166,277 $31,070 $4,584 $3,974 Clean Elections National Guard Relief Fund Sustainable State Parks and Road Fund Job Creation W/H Clearing Acct (2) Subtotal Distributions $593,388,915 (3) NET REVENUE TO STATE GENERAL FUND (1) Pursuant to SB 1447, Chapter 251, 1st Regular Session, 2013, monies in the Assitance for Education Fund are to be distributed to fund the Solutions Teams Assigned to Schools. (2) Pursuant to SB1473, Chapter 12, 1st Regular Session, 2015, the amount of withholding tax revenues to be transferred to the Job Creation Withholding Clearing Account in FY2015/16 was reduced to $26.5 million. (3) Correction to reported FY14 distribution amounts. (4) Pursuant to HB 2332, Chapter 128, 1st Regular Session, 2011, taxpayers are to declare their annual amount of use tax on their individual income tax return beginning with taxable year 2011. Pursuant to SB1214, Chapter 323 , 2nd Regular Session, 2012, the provision was repealed retroactively to tax years beginning January 1, 2012. The use tax amount has been adjusted out of Individual Gross Revenue and is included in the Transaction Privilege, Use and Severance tables. TABLE 29 EXEMPTIONS, DEDUCTIONS AND CREDITS TAX YEAR 2011 THROUGH TAX YEAR 2014 STANDARD MAXIMUM PERSONAL BLIND AND OVER AGE 65 DEPENDENT DEDUCTION PROPERTY FAMILY YEAR EXEMPTION (2) EXEMPTION EXEMPTION EXEMPTION LIMIT (1) TAX CREDIT TAX CREDIT 2011 $2,100 $1,500 $2,100 $2,300 $4,703/$9,406 $502 $240 2012 $2,100 $1,500 $2,100 $2,300 $4,833/$9,665 $502 $240 2013 $2,100 $1,500 $2,100 $2,300 $4,945/$9,883 $502 $240 2014 $2,100 $1,500 $2,100 $2,300 $5,009/$10,010 $502 $240 TAX (1) Amounts shown are for single and married-filing-jointly returns. MAXIMUM (2) Beginning with tax year 1997, married filers claiming at least one dependent are entititled to an additional $2,100 personal exemption. INDIVIDUAL INCOME TAX CREDITS TAX YEAR 2012 THROUGH TAX YEAR 2014 TAX YEAR 2012 CREDIT Agricultural Pollution Control Agricultural Water Conservation Airline Bankruptcy Payments Clean Elections Commercial & Industrial Solar Energy Contributions to Qualifying Charitable Organizations Donations to Military Family Relief Fund CLAIMANTS TAX YEAR 2013 CREDITS CLAIMANTS TAX YEAR 2014 CREDITS CLAIMANTS CREDITS 5 $27,350 * * 5 $22,916 93 $1,492,176 43 $838,183 120 $1,145,564 --------- --------- ----- ----- 0 $0 28,320 $537,541 ----- ----- 157 $639,332 117 $408,692 108 $324,550 78,736 $21,835,458 100,398 $24,503,609 116,225 $31,617,855 2,967 $989,868 2,936 $989,606 2,913 $977,410 Employing National Guard Members * * 0 $0 * * Employment of TANF Recipients * * * * * * 115 $294,431 60 $92,579 26 $40,602 Enterprise Zone Environmental Technology Family Tax Credit Healthy Forest Enterprises * * * * * * 520,448 $5,399,635 538,319 $5,017,004 580,028 $4,770,077 0 $0 0 $0 0 $0 32,281 $93,394,010 43,359 $96,608,047 58,335 $140,744,364 638,208 $33,367,298 648,116 $33,418,364 664,037 $33,511,567 281 $1,069,297 297 $1,064,348 364 $1,716,442 Military Reuse Zone 0 $0 0 $0 * * Motion Picture Production & Infrastructure 3 $16,505 0 $0 0 $0 Income Taxes Paid to Other States Increased Excise Taxes Paid Investment in Qualified Small Buiness New Employment Credit 0 $0 0 $0 * * Pollution Control Device 9 $221,039 0 $0 0 $0 Private School Tuition Organization (1) 73,159 $51,307,450 75,813 $54,425,997 78,575 $58,676,257 Private School Tuition Organization - Switcher (1) 16,518 $12,947,997 28,932 $23,201,403 34,731 $28,371,948 Property Tax 18,767 $7,222,443 19,012 $7,327,176 19,277 $7,406,381 253,134 $51,287,359 253,842 $50,972,856 266,087 $50,991,999 ----- ----- 0 $0 0 $0 0 $0 0 $0 5 $3,856 Public School Extra Curricular Activity (1) Qualified Facilities - Refundable Qualified Health Insurance Plans Recycling Equipment 0 $0 0 $0 0 $0 Renewable Energy Industry - Refundable 0 $0 0 $0 0 $0 Renewable Energy for Self-Consumption ----- ----- ----- ----- 0 $0 0 $0 0 $0 5 $309,243 559 $7,825,336 631 $8,386,728 790 $10,501,226 14 $132,142 10 $152,013 4 $18,981 0 $0 0 $0 0 $0 School Site Donation 11 $38,578 21 $111,752 20 $303,735 Solar Energy Device 7,754 $3,874,538 7,716 $3,824,470 7,931 $4,142,240 13 $1,125 12 $975 93 $9,384 0 $0 0 $0 0 $0 38 $7,287 25 $3,739 9 $374 1,671,581 $293,930,741 1,719,654 $311,353,088 1,829,692 $375,651,568 Renewable Energy Production Research & Development Research & Development - Refundable (2) Research & Development - University Research Solar Hot Water Heater & Plumbing Stub Outs Solar Liquid Fuel Research & Development Water Conservation Systems Total (3) (1) Data reported is based on donation information provided to the Department of Revenue by the Private School Tuition Organizations and the Public Schools. For the purposes of this report, it is assumed that all credit was used in the tax year. (2) These taxpayers are already included in the research and development credit count. (3) Total is for all credits, including those for which information cannot be divulged individually. * The single asterisk indicates that no information can be released due to confidentiality laws in Arizona. Figures for all credits shown here are subject to change, due to the verification process. TABLE 30 RESIDENT INDIVIDUAL INCOME TAX LIABILITY BY FEDERAL ADJUSTED GROSS INCOME TAX YEAR 2013 (1) FEDERAL ADJUSTED GROSS INCOME # OF FILERS % OF TOTAL LIABILITY % OF TOTAL Negative Income $0.01 to $1,999 $2,000 to $5,999 $6,000 to $9,999 $10,000 to $13,999 $14,000 to $19,999 $20,000 to $24,999 $25,000 to $29,999 $30,000 to $39,999 $40,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $199,999 $200,000 to $499,999 $500,000 to $999,999 $1,000,000 to $4,999,999 $5,000,000 and over 41,098 45,971 124,003 160,441 177,720 256,944 188,997 163,698 272,657 202,041 338,121 213,241 265,492 64,813 9,199 3,595 341 1.63% 1.82% 4.90% 6.35% 7.03% 10.16% 7.48% 6.47% 10.78% 7.99% 13.37% 8.43% 10.50% 2.56% 0.36% 0.14% 0.01% $293,621 14,433 47,282 2,505,303 10,500,272 29,751,532 39,701,788 52,546,352 134,336,161 146,104,562 361,205,104 354,464,218 813,039,066 552,085,266 221,311,204 250,261,979 172,017,529 0.01% 0.00% 0.00% 0.08% 0.33% 0.95% 1.26% 1.67% 4.28% 4.65% 11.50% 11.29% 25.89% 17.58% 7.05% 7.97% 5.48% 2,528,372 100.00% $3,140,185,672 100.00% TOTAL (1) This summary combines all liability reported on the Arizona Form 140, 140A and 140EZ Individual Income tax returns for tax year 2013, filed from January 2014 forward. TABLE 31 NONRESIDENT/PART YEAR RESIDENT INDIVIDUAL INCOME TAX LIABILITY BY FEDERAL ADJUSTED GROSS INCOME TAX YEAR 2013 (1) ARIZONA PORTION OF FEDERAL ADJUSTED GROSS INCOME # OF FILERS % OF TOTAL LIABILITY % OF TOTAL Negative Income $0.01 to $1,999 $2,000 to $5,999 $6,000 to $9,999 $10,000 to $13,999 $14,000 to $19,999 $20,000 to $24,999 $25,000 to $29,999 $30,000 to $39,999 $40,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $199,999 $200,000 to $499,999 $500,000 to $999,999 $1,000,000 to $4,999,999 $5,000,000 and over 55,101 34,122 43,227 28,876 20,829 22,057 13,120 9,991 14,364 9,893 14,172 6,991 8,851 3,161 780 464 63 19.26% 11.93% 15.11% 10.09% 7.28% 7.71% 4.59% 3.49% 5.02% 3.46% 4.95% 2.44% 3.09% 1.11% 0.27% 0.16% 0.02% $4,570,028 328,778 1,299,512 1,989,469 2,682,996 4,788,073 4,305,568 4,337,846 8,581,969 8,342,556 17,906,649 13,845,678 31,685,229 29,989,262 19,173,445 33,647,978 28,516,351 2.12% 0.15% 0.60% 0.92% 1.24% 2.22% 1.99% 2.01% 3.97% 3.86% 8.29% 6.41% 14.67% 13.88% 8.88% 15.58% 13.20% 286,062 100.00% $215,991,386 100.00% TOTAL (1) This summary combines all liability reported on the Arizona Form 140NR and 140PY Individual Income tax returns for tax year 2013, filed from January 2014 forward. TABLE 32 CORPORATE INCOME TAX CORPORATE TAXPAYER BY SIZE OF TAX LIABILITY TAX YEAR 2013 (1) CORPORATE TAX LIABILITY $50 Minimum $50 to $99 $100 to $999 $1,000 to $4,999 $5,000 to $9,999 $10,000 to $49,999 $50,000 to $99,999 $100,000 to $499,999 $500,000 to $999,999 $1,000,000 to $35,000,000 TOTAL # OF FILERS 33,782 800 4,058 3,339 1,013 1,469 415 537 117 128 45,658 % OF TOTAL 74.0% 1.8% 8.9% 7.3% 2.2% 3.2% 0.9% 1.2% 0.3% 0.3% 100.0% LIABILITY $1,689,100 58,515 1,716,322 8,037,652 7,175,240 33,753,112 29,086,544 120,116,320 80,893,542 497,565,935 $780,092,282 CORPORATE INCOME TAX CREDITS TAX YEAR 2013 # OF CREDIT TYPE FILERS Agricultural Pollution Control Equipment 0 Commercial & Industrial Solar Energy 16 Contributions to School Tuition Organizations 98 Contributions to School Tuition Organizations for Disabled/Displaced Students 14 Employing National Guard Members 5 Employment of TANF Recipients 8 Enterprise Zone 47 Environmental Technology * Healthy Forest Enterprises 0 Military Reuse Zone * Motion Picture Production & Infrastructure 3 New Employment 18 Pollution Control Device 19 Qualified Facilities 0 Qualified Health Insurance Plans * Renewable Energy Industry * Renewable Energy Production 8 Research & Development 324 Research & Development - Refundable (2) 26 Research & Development for University Research * School Site Donation * Solar Hot Water Heater Plumbing Stub-Outs 0 Solar Liquid Fuel Research & Development 0 Taxes Paid on Coal Used in Electric Generation * Water Conservation 0 TOTAL (3) 576 CREDIT USED $0 $189,752 $26,097,925 CARRYFORWARD AVAILABLE $0 $73,141 $4,571,570 $368,627 $10,050 $113,498 $1,894,417 * $0 * $833,889 $5,916,200 $1,714,164 $0 * * $8,754,958 $91,114,599 $4,247,369 * * $0 $0 * $0 $142,197,925 $137,968 $2,950 $90,762 $3,209,850 * $0 * $7,331 $1,046,700 $4,667,337 $0 * * $15,616,518 $1,050,840,830 $0 * * $0 $0 * $0 $1,093,149,494 (1) This summary combines all liability on the Arizona Form 120 or 120A Corporate Income Tax returns for tax year 2013 filed from January 2014 forward. (2) These taxpayers are already included in the research and development credit count. (3) Total is for all credits, including those for which information cannot be divulged individually. * The single asterisk indicates that no information can be released due to confidentiality laws in Arizona. Figures may not add to total due to rounding. % OF TOTAL 0.2% 0.0% 0.2% 1.0% 0.9% 4.3% 3.7% 15.4% 10.4% 63.8% 100.0% TABLE 33 AVERAGE FEDERAL ADJUSTED GROSS INCOME AND AVERAGE TAX LIABILITY PER RETURN BY COUNTY FOR TAX YEAR 2013 APACHE COCONINO Average FAGI $35,357 Average Liability $349 Average FAGI $52,354 Average Liability $1,095 MOHAVE Average FAGI $39,343 Average Liability $683 NAVAJO Average FAGI $40,696 Average Liability $604 GREENLEE YAVAPAI Average FAGI $56,752 Average Liability $1,239 Average FAGI $47,079 Average Liability $913 LA PAZ GILA Average FAGI $33,969 Average Liability $524 Average FAGI $44,421 Average Liability $754 MARICOPA Average FAGI $60,012 Average Liability $1,411 PINAL YUMA Average FAGI $45,071 Average Liability $833 Average FAGI $37,969 Average Liability $661 STATEWIDE AVERAGES Average FAGI $55,721 Average Liability $1,242 PIMA COCHISE Average FAGI $53,598 Average Liability $1,122 Average FAGI is the average federal adjusted gross income reported on the Arizona resident income tax return. Average liability is the average tax liability for all resident Arizona income tax returns filed. GRAHAM Average FAGI $47,925 Average Liability $903 Average FAGI $46,250 Average Liability $875 SANTA CRUZ Average FAGI $38,952 Average Liability $713 TABLE 34 URBAN REVENUE SHARING FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 FISCAL YEAR AMOUNT 2011-12 $424,423,442 2012-13 $513,584,045 2013-14 $561,001,194 2014-15 $608,935,729 2015-16 $605,634,332 TABLE 35 DISTRIBUTION OF INCOME TAX AS URBAN REVENUE SHARING TO MUNICIPALITIES IN FISCAL YEAR 2015-16 CITIES BY COUNTY AMOUNT % OF TOTAL CITIES BY COUNTY AMOUNT % OF TOTAL APACHE Eagar $588,153 0.10% Queen Creek $3,173,861 0.52% St. Johns 418,992 0.07% Scottsdale 26,173,125 4.32% Springerville 236,104 0.04% Surprise 14,149,031 2.34% Tempe 19,470,946 3.21% COCHISE Benson $614,641 0.10% Tolleson 788,017 0.13% Bisbee 671,229 0.11% Wickenburg 766,104 0.13% 2,108,081 0.35% Youngtown 741,182 0.12% 223,101 0.04% Sierra Vista 5,284,109 0.87% Bullhead City $4,760,611 0.79% Tombstone* 180,600 0.03% Colorado City 580,448 0.10% Willcox 452,342 0.07% Kingman 3,379,384 0.56% Lake Havasu City 6,324,244 1.04% $608,381 0.10% 515,552 0.09% Douglas Huachuca City COCONINO Flagstaff MOHAVE NAVAJO $7,930,739 1.31% Fredonia* 180,600 0.03% Holbrook Page 872,538 0.14% Pinetop-Lakeside Tusayan* 180,600 0.03% Show Low 1,283,463 0.21% Williams 363,969 0.06% Snowflake 673,035 0.11% Taylor 495,084 0.08% 1,162,461 0.19% $4,209,300 0.70% GILA Globe Hayden* Miami $906,852 0.15% 180,600 0.03% Winslow PIMA 221,175 0.04% Marana 1,842,238 0.30% Oro Valley 4,937,719 0.82% Star Valley 278,124 0.05% Sahuarita 3,041,180 0.50% Winkelman* 180,600 0.03% South Tucson Payson GRAHAM Tucson 680,500 0.11% 62,621,898 10.34% PINAL Pima $287,394 0.05% Safford 1,151,745 0.19% Apache Junction $4,315,131 0.71% 585,745 0.10% Casa Grande 5,847,942 0.97% Coolidge 1,423,728 0.24% Thatcher GREENLEE Clifton Duncan* $398,644 0.07% Eloy 2,002,370 0.33% 180,600 0.03% Florence 3,074,531 0.51% Kearny 234,780 0.04% 180,600 0.03% LA PAZ Parker Quartzsite $371,193 0.06% Mammoth* 442,710 0.07% Maricopa 5,235,227 0.86% Superior 341,574 0.06% $2,508,772 0.41% 180,600 0.03% 0.22% MARICOPA SANTA CRUZ Avondale $9,179,045 1.52% Buckeye 6,125,464 1.01% Nogales Carefree 404,905 0.07% Patagonia* Cave Creek 603,805 0.10% Chandler 28,453,619 4.70% Camp Verde $1,309,108 El Mirage 3,828,355 0.63% Chino Valley 1,302,365 0.22% Fountain Hills 2,707,673 0.45% Clarkdale 493,278 0.08% Gila Bend YAVAPAI 231,409 0.04% Cottonwood 1,356,305 0.22% Gilbert 25,085,553 4.14% Dewey-Humboldt 468,837 0.08% Glendale 27,297,178 4.51% Jerome* 180,600 0.03% Goodyear 7,859,101 1.30% Prescott 4,797,092 0.79% 664,968 0.11% Prescott Valley 4,674,164 0.77% Sedona 1,207,731 0.20% 0.55% Guadalupe Litchfield Park Mesa Paradise Valley 659,310 0.11% 52,860,478 8.73% YUMA 1,543,526 0.25% San Luis $3,360,240 Peoria 18,549,406 3.06% Somerton 1,720,153 0.28% Phoenix 174,234,020 28.77% 346,992 0.06% Yuma 10,915,452 1.80% TOTAL $605,634,332 100.00% City distributions are based on relative population. Wellton *Population adjusted to reflect minimum requirement of 1,500 per HB 2391, Chapter 290, 2nd Regular Session, 2008. Figures may not add to total due to rounding. TABLE 36 STATE OF ARIZONA 2016 PRIMARY PROPERTY TAX LEVIES TAX AUTHORITY APACHE COCHISE COCONINO GILA GRAHAM GREENLEE LA PAZ MARICOPA MOHAVE NAVAJO PIMA PINAL SANTA CRUZ YAVAPAI YUMA TOTAL STATE NET ASSESSED VALUATION $453,791,208 $909,774,049 $1,569,812,808 $496,294,071 $193,098,383 $424,428,003 $200,919,282 $36,135,494,474 $1,696,199,992 $803,062,466 $7,816,699,760 $2,119,750,925 $309,834,858 $2,344,409,942 $1,116,022,260 $56,589,592,481 STATE $3,553,477 $4,722,984 $9,535,938 $2,591,254 $986,303 $3,262,368 $1,006,606 $210,324,982 $8,658,993 $4,142,239 $41,291,977 $10,622,706 $1,556,046 $15,431,748 $5,591,272 $323,278,892 COUNTY $2,560,290 $23,905,223 $9,086,077 $20,794,722 $4,749,641 $2,619,145 $4,737,677 $506,222,142 $33,408,355 $6,802,742 $335,305,153 $82,032,241 $11,800,370 $44,607,088 $27,547,893 $1,116,178,759 CITIES and TOWNS $0 $2,480,098 $6,318,876 $2,075,192 $250,005 $483,221 $0 $240,206,695 $4,338,691 $371,710 $17,087,271 $18,132,657 $0 $2,254,668 $12,717,457 $306,716,542 AVERAGE STATE PRIMARY TAX RATE PER $100 COMMUNITY COLLEGES $0 $20,797,435 $7,706,211 $4,335,129 $5,941,251 $0 $4,524,903 $447,212,880 $22,539,105 $14,361,969 $107,346,738 $48,487,183 $1,529,965 $43,228,575 $25,133,937 $753,145,280 SCHOOLS $7,896,699 $44,705,450 $63,854,561 $22,686,504 $9,053,684 $8,199,703 $5,752,486 $1,542,293,340 $71,493,476 $31,510,806 $393,401,406 $90,884,231 $13,959,256 $78,713,308 $55,060,682 $2,439,465,592 ALL OTHER $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL $14,010,466 $96,611,190 $96,501,663 $52,482,801 $20,980,885 $14,564,437 $16,021,672 $2,946,260,039 $140,438,621 $57,189,467 $894,432,545 $250,159,017 $28,845,637 $184,235,387 $126,051,242 $4,938,785,066 PRIMARY RATE $3.09 $10.62 $6.15 $10.57 $10.87 $3.43 $7.97 $8.15 $8.28 $7.12 $11.44 $11.80 $9.31 $7.86 $11.29 $8.73 $8.73 2015 PRIMARY PROPERTY TAX LEVIES TAX AUTHORITY APACHE COCHISE COCONINO GILA GRAHAM GREENLEE LA PAZ MARICOPA MOHAVE NAVAJO PIMA PINAL SANTA CRUZ YAVAPAI YUMA TOTAL STATE NET ASSESSED VALUATION $489,723,731 $920,583,366 $1,537,418,218 $482,515,161 $203,987,445 $465,533,779 $201,755,860 $34,623,670,323 $1,685,788,538 $832,770,173 $7,620,360,873 $2,057,547,528 $317,370,907 $2,279,183,448 $1,120,339,479 $54,838,548,829 STATE $4,269,135 $4,853,676 $9,444,733 $2,438,632 $1,048,574 $4,830,511 $1,217,546 $205,826,452 $8,874,685 $5,116,802 $40,840,598 $10,401,781 $1,607,574 $15,130,241 $5,662,196 $321,563,137 COUNTY $2,547,543 $24,189,249 $8,817,093 $20,217,385 $4,706,194 $2,619,093 $4,757,403 $471,455,751 $33,203,291 $7,009,427 $334,424,674 $82,379,301 $12,087,388 $44,026,987 $27,068,877 $1,079,509,657 CITIES and TOWNS $0 $2,411,857 $6,233,822 $1,563,724 $247,857 $407,883 $0 $232,070,202 $4,282,498 $361,469 $16,688,073 $17,467,111 $0 $2,143,834 $11,349,068 $295,227,397 AVERAGE STATE PRIMARY TAX RATE PER $100 NOTE: Some increase/decrease due to reporting tax levies in different authorities than in previous years. $8.74 COMMUNITY COLLEGES $0 $20,028,212 $7,478,002 $4,111,994 $5,887,078 $0 $4,368,014 $437,227,709 $21,792,188 $14,509,355 $104,315,120 $47,323,593 $1,483,709 $42,668,593 $24,255,350 $735,448,917 SCHOOLS $8,206,040 $50,501,577 $62,417,926 $21,547,013 $8,795,036 $7,563,185 $5,814,134 $1,484,573,491 $74,852,444 $28,079,681 $376,294,083 $91,765,063 $14,151,131 $78,111,435 $50,258,656 $2,362,930,895 ALL OTHER $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL $15,022,717 $101,984,571 $94,391,577 $49,878,748 $20,684,740 $15,420,671 $16,157,098 $2,831,153,604 $143,005,106 $55,076,733 $872,562,548 $249,336,850 $29,329,802 $182,081,091 $118,594,147 $4,794,680,003 PRIMARY RATE $3.07 $11.08 $6.14 $10.34 $10.14 $3.31 $8.01 $8.18 $8.48 $6.61 $11.45 $12.12 $9.24 $7.99 $10.59 $8.74 TABLE 37 STATE OF ARIZONA 2016 SECONDARY PROPERTY TAX LEVIES TAX AUTHORITY NET ASSESSED VALUATION STATE COUNTY CITIES and TOWNS COMMUNITY COLLEGES SCHOOLS ALL OTHER TOTAL SECONDARY RATE APACHE COCHISE COCONINO GILA GRAHAM GREENLEE LA PAZ MARICOPA MOHAVE NAVAJO PIMA PINAL SANTA CRUZ YAVAPAI YUMA $453,791,208 $909,774,049 $1,569,812,808 $496,294,071 $193,098,383 $424,428,003 $200,919,282 $36,135,494,474 $1,696,199,992 $803,062,466 $7,816,699,760 $2,119,750,925 $309,834,858 $2,344,409,942 $1,116,022,260 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,698,252 $4,251,562 $11,997,638 $1,699,807 $304,449 $1,244,325 $200,919 $82,602,090 $13,186,211 $5,325,818 $122,297,916 $6,531,904 $2,435,549 $10,907,947 $12,551,736 $0 $278,132 $5,879,357 $0 $0 $0 $0 $279,519,668 $0 $0 $33,873,886 $6,072,059 $0 $42,826 $0 $1,989,874 $0 $2,048,606 $0 $0 $0 $750,233 $82,208,250 $0 $0 $0 $7,196,554 $0 $4,974,838 $4,167,227 $2,012,455 $5,945,889 $16,334,964 $5,082,038 $1,220,373 $1,567,815 $201,357 $958,583,801 $7,581,264 $9,990,769 $103,476,339 $29,302,042 $3,177,039 $18,228,327 $12,745,908 $5,277,622 $9,157,396 $17,042,576 $7,228,769 $580,425 $43,000 $4,549,929 $256,158,288 $21,205,740 $14,317,816 $89,662,316 $29,907,804 $6,139,836 $42,647,299 $877,146 $13,978,203 $19,632,979 $53,303,140 $14,010,615 $2,105,248 $2,855,139 $5,702,438 $1,659,072,097 $41,973,214 $29,634,403 $349,310,457 $79,010,364 $11,752,424 $76,801,237 $30,342,018 3.08 2.16 3.40 2.82 1.09 0.67 2.84 4.59 2.47 3.69 4.47 3.73 3.79 3.28 2.72 TOTAL STATE $56,589,592,481 $0 $280,236,124 $325,665,928 $103,335,582 $1,175,450,380 $504,795,963 $2,389,483,977 $4.22 SCHOOLS ALL OTHER AVERAGE STATE SECONDARY TAX RATE PER $100 $4.22 2015 SECONDARY PROPERTY TAX LEVIES TAX AUTHORITY NET ASSESSED VALUATION STATE COUNTY CITIES and TOWNS COMMUNITY COLLEGES TOTAL SECONDARY RATE APACHE COCHISE COCONINO GILA GRAHAM GREENLEE LA PAZ MARICOPA MOHAVE NAVAJO PIMA PINAL SANTA CRUZ YAVAPAI YUMA $490,430,671 $920,583,366 $1,540,028,458 $482,515,161 $203,987,445 $465,533,779 $201,755,860 $34,623,670,323 $1,685,788,538 $832,770,173 $7,620,360,873 $2,057,547,528 $317,370,907 $2,279,183,448 $1,120,339,479 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,750,516 $4,299,422 $11,771,386 $1,652,614 $301,046 $1,315,625 $201,756 $72,779,242 $13,084,502 $5,491,430 $117,854,379 $6,350,353 $2,494,180 $10,170,117 $12,580,610 $0 $280,130 $5,717,291 $0 $0 $0 $0 $231,710,214 $0 $0 $33,217,111 $5,855,213 $0 $76,927 $0 $2,036,759 $0 $1,911,175 $0 $0 $0 $785,436 $80,049,926 $0 $0 $0 $7,197,301 $0 $4,968,620 $4,361,482 $2,436,353 $5,021,094 $16,086,317 $4,428,506 $1,823,890 $1,578,515 $689,908 $858,489,419 $9,822,067 $11,488,751 $103,613,310 $32,042,747 $3,329,998 $17,140,288 $11,363,601 $5,275,994 $9,123,204 $16,434,508 $7,256,157 $571,925 $37,700 $4,422,295 $245,240,094 $20,332,347 $13,799,302 $85,032,399 $29,466,305 $6,079,598 $41,073,477 $884,877 $14,499,621 $18,723,850 $51,920,678 $13,337,278 $2,696,861 $2,931,840 $6,099,394 $1,488,268,895 $43,238,916 $30,779,483 $339,717,198 $80,911,920 $11,903,776 $73,429,429 $29,190,570 $2.96 $2.03 $3.37 $2.76 $1.32 $0.63 $3.02 $4.30 $2.56 $3.70 $4.46 $3.93 $3.75 $3.22 $2.61 TOTAL STATE $54,841,866,009 $0 $265,097,178 $276,856,885 $101,310,698 $1,079,354,765 $485,030,182 $2,207,649,709 $4.03 AVERAGE STATE SECONDARY TAX RATE PER $100 $4.03 NOTE: Some increase/decrease due to reporting tax levies in different authorities than in previous years. TABLE 38 AVERAGE PROPERTY TAX RATES PER $100 OF ASSESSED VALUATION 2012 THROUGH 2015 2013 PRIMARY 2014 SECONDARY PRIMARY SECONDARY School Districts $4.29 $2.10 $4.39 $1.99 Counties 1.81 0.46 1.91 0.46 State 0.55 0.00 0.58 0.00 Cities and Towns 0.55 0.46 0.54 0.50 Community Colleges 1.31 0.19 1.32 0.19 Special Districts 0.00 0.80 0.00 0.79 $8.52 $4.02 $8.75 $3.92 TOTAL $12.54 $12.67 2015 PRIMARY 2016 SECONDARY PRIMARY SECONDARY School Districts $4.31 $1.97 $4.31 $2.08 Counties 1.97 0.48 1.97 0.50 State 0.59 0.00 0.57 0.00 Cities and Towns 0.54 0.50 0.54 0.50 Community Colleges 1.34 0.18 1.33 0.18 Special Districts 0.00 0.79 0.00 0.89 $8.74 $4.03 $8.73 $4.22 TOTAL $12.77 School district rate includes Unorganized School Districts. Figures may not add to total due to rounding. $12.95 Miscellaneous Tax Bingo Collections The tax on state licensed bingo operations is based on a multi-tiered licensing structure. There are three classes of bingo licenses, each of which has a different tax rate. Each licensee’s tax rate is based on bingo receipts. Class A licensees, whose gross receipts do not exceed $15,600 per year, are taxed at 2.5 percent of their adjusted gross receipts. (Adjusted gross receipts are the monies left after paying prizes.) Class B and Class C licensees are taxed on their gross receipts. Class B licensees, whose gross receipts do not exceed $300,000, are taxed at 1.5 percent of their gross receipts. Class C licensees, whose gross receipts exceed $300,000 per year, are taxed at 2 percent of their gross receipts from bingo. All taxes collected are deposited in the state general fund (Refer to Table 39). TABLE 39 BINGO COLLECTIONS FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 FISCAL YEAR AMOUNT 2011-12 $508,145 2012-13 $519,998 2013-14 $521,583 2014-15 $507,212 2015-16 $476,079 BINGO COLLECTIONS Licenses Proceeds Penalty, Interest and Miscellaneous TOTAL FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $18,164 486,056 $18,175 497,493 $17,580 499,608 $17,136 482,440 $16,159 456,902 3,926 4,331 4,395 7,636 3,018 $508,145 $519,998 $521,583 $507,212 $476,079 Miscellaneous Tax Estate Tax Collections Arizona’s Estate Tax was effectively repealed January 1, 2005, following the elimination of the Federal State Death Tax Credit by Congress. No Arizona estate tax is owed on the estate of a person who dies after 2004 and there is no requirement to file an Arizona Form 76. We continue to receive late original returns and amended tax returns for decedents with a date of death prior to 2005 as it can take years to settle a complicated estate. TABLE 40 ESTATE TAX COLLECTIONS (1) FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 Fiscal Year Collections Refunds Net 2011-12 $200,825 $0 $200,825 2012-13 $0 $0 $0 2013-14 $0 $0 $0 2014-15 $0 $0 $0 2015-16 $0 $0 $0 Figures may not add to total due to rounding. (1) Arizona's estate tax was effectively repealed January 1, 2005, following the elimination of the Federal State Death Tax Credit by Congress. Collections Refunds Net FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $200,825 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,825 $0 $0 $0 $0 Miscellaneous Tax Luxury Tax Collections Arizona’s luxury tax applies to cigarettes, other tobacco products, and alcoholic beverages. The department is responsible for issuing tobacco licenses and stamps and collecting taxes on tobacco products and alcoholic beverages. The department also investigates and confiscates contraband tobacco products. Of the monies collected per the Tobacco Products Referendum (Prop 303), $40.3 million was distributed to the Prop 204 Protection Account, $25.9 million to the Medically Needy Account, $19.2 million for Emergency Health Services, $4.8 million for Health Research, and $1.9 million for Health Education. Due to the passage of the Tobacco Tax and Health Care Initiative in November 1994, $47.5 million was distributed to the Medically Needy Fund, $15.6 million to the Health Education Fund and $3.4 million to the Health Research Fund. The Corrections Fund, established by the Legislature in 1984 to pay for prison construction, received $30.1 million. The Drug Treatment and Education Fund received $9.2 million, and the Corrections Revolving Fund received $3.7 million due to the passage of Proposition 200 in 1994. The Smoke Free AZ fund received $2.9 million due to the passage of Proposition 201 in 2006. The Early Childhood Development and Health Fund received $126.2 million due to the passage of Proposition 203 in 2006. The remaining $58.2 million was deposited into the state general fund. (Refer to Table 41) TABLE 41 LUXURY TAX COLLECTIONS FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 PERCENT OF COLLECTIONS SOURCE: FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 IN FY2015-16 $31,847,105 $32,184,954 $33,588,102 $33,963,657 $34,551,657 8.9% Vinous Liquor 15,430,577 15,155,547 15,583,934 15,624,518 16,160,560 4.1% Malt Liquor 21,101,489 21,343,360 21,974,061 21,682,060 21,568,413 5.5% $68,379,171 $68,683,862 $71,146,096 $71,270,235 $72,280,629 18.6% $337,777,289 $331,347,184 $327,788,207 $331,926,341 $341,591,816 Refunds (17,978,338) (15,583,872) (15,299,166) (17,161,399) (23,630,049) Licenses 7,925 7,825 8,198 6,775 6,625 (677,280) (676,090) (574,345) (679,500) (630,981) $319,129,597 $315,095,046 $311,922,894 $314,092,217 $317,337,411 81.4% $387,508,768 $383,778,908 $383,068,990 $385,362,452 $389,618,040 100.0% $56,357,085 $56,184,596 $58,711,664 $56,746,947 $58,168,800 Tobacco Tax & Health Care Fund 61,879,113 61,958,027 58,050,632 63,194,425 62,624,638 Tobacco Products Tax Fund Spirituous Liquor Liquor Collections Tobacco - All Types Gross Revenue Administrative Expenses Net Tobacco Collections TOTAL COLLECTIONS DISTRIBUTIONS: State General Fund 90,953,118 91,044,441 91,923,081 93,055,529 92,031,875 Drug Treatment & Education Fund 8,805,071 8,822,752 9,111,608 9,092,642 9,209,833 DOC Revolving Fund 3,512,659 3,520,473 3,636,704 3,630,371 3,677,579 28,518,897 28,468,675 29,253,753 29,249,936 29,714,628 DOC Transfer from Prop 200 Funds 1,259,100 1,259,414 1,343,199 1,426,934 1,203,345 Prop 200 Transfer from Prop 303 Funds 3,789,120 3,792,927 3,748,474 3,876,853 3,839,047 Smoke Free AZ 3,043,448 2,956,134 2,918,213 2,848,986 2,941,563 129,391,158 125,771,470 124,371,662 122,239,828 126,206,733 $387,508,768 $383,778,908 $383,068,990 $385,362,451 $389,618,040 Department of Corrections Fund Early Childhood Development and Health Fund TOTAL DISTRIBUTIONS Figures may not add to total due to rounding. Miscellaneous Tax Unclaimed Property Collections and Distributions Responsibilities of the Unclaimed Property Unit include the collection, safekeeping, and disposition of abandoned property and escheated estates. The Unclaimed Property staff receives and maintains records related to unclaimed funds along with other intangible and tangible personal property that is presumed to be abandoned. This property is received from business associations, banking and financial institutions, insurance companies, fiduciaries, state courts, and governmental agencies. Common examples of unclaimed property are: • State warrants not cashed after six months. • Payroll checks written to employees not cashed after one year. • Contents of safe deposit boxes on which rent has not been paid for three years. • Government and Court property not claimed in two years. • Stock or other equity interest in a business association or financial institution with no activity for three years. • Bank or credit union accounts with no activity for three years. • Cashier and other official checks not cashed in three years. • Checks written to vendors or customers not cashed after three years. • Money orders not cashed in three years. • Traveler’s checks not cashed in fifteen years. There is no statute of limitations for filing a claim for unclaimed property. Owners may recover their property at any time with proper documentation. ESCHEATED ESTATES In addition to their Unclaimed Property responsibilities, staff members also establish and maintain records of Escheated Estates. An Escheated Estate is created when a person dies without leaving a will and has no known heirs. When this condition exists, his or her property reverts to the state as the original and ultimate proprietor after seven years. Funds received from escheated estates are deposited into the Permanent State School Fund. (Refer to Table 42.) TABLE 42 UNCLAIMED PROPERTY COLLECTIONS AND DISTRIBUTIONS FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 SOURCE: FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $115,160,041 $131,397,401 $113,119,156 $126,763,806 $149,833,143 Refunds (40,049,513) (40,013,520) (34,059,189) (42,673,868) (54,884,199) NET $75,110,528 $91,383,881 $79,059,967 $84,089,938 $94,948,944 186,322 327,961 649,079 736,221 273,583 Refunds (158,988) (302,974) (283,812) (697,553) (255,824) NET $27,334 $24,987 $365,267 $38,668 $17,759 $75,137,862 $91,408,868 $79,425,235 $84,128,606 $94,966,703 $45,819,445 $60,899,609 $49,165,753 $54,034,910 $64,941,156 2,500,000 2,500,000 2,500,000 2,500,000 2,000,000 2,000,000 2,000,000 2,000,000 612,703 684,584 683,239 716,782 514,700 ----- ----- ----- 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 Escheated Estates $27,334 $27,334 $24,987 $38,668 $17,759 Unclaimed Shares/dividends 184,618 332,986 190,053 355,232 280,021 (1) 5,925 23,884 19,578 16,558 10,985 $75,137,862 $91,411,215 $79,084,954 $84,128,606 $94,966,703 UNCLAIMED PROPERTY ESCHEATED ESTATES TOTAL NET REVENUE DISTRIBUTIONS: General Fund Housing Fund 2,500,000 (3) 2,000,000 SMI Housing Fund (3) Victim Restitution Fund Operating transfers 100,540 ----- Admin Fund (2) Net to Permanent State School Fund: Storage Facility TOTAL DISTRIBUTION (1) FY15 Escheated Estates will be transferred in FY16. (2) Pursuant to SB 1003, Chapter 3, 4th Special Session, 2009. (3) Pursuant to SB 1616, Chapter 28, 1st Regular Session, 2011. Figures may not add to total due to rounding. Miscellaneous Tax Waste Tire Fee Distributions The Arizona waste tire fee is a fee applied to the sale of new motor vehicle tires. The fee is to be collected quarterly at a rate of two percent of the purchase price not to exceed two dollars per tire. During fiscal year 2016, the department collected $9,668,642 and distributed 3.5% to the Arizona Department of Environmental Quality with the remainder being distributed to the counties based on the number of motor vehicles registered in the county (Refer to Table 43). The distribution is performed quarterly. TABLE 43 WASTE TIRE FEE DISTRIBUTION FISCAL YEAR 2011-12 THROUGH FISCAL YEAR 2015-16 Apache Cochise Coconino Gila Graham Greenlee La Paz Maricopa Mohave Navajo Pima Pinal Santa Cruz Yavapai Yuma Arizona Department of Environmental Quality Total FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $110,216 225,450 211,898 115,502 51,514 16,315 52,807 4,531,883 413,996 176,949 1,133,099 414,977 82,081 407,032 276,990 298,160 $113,633 227,680 218,206 118,562 53,295 16,991 54,978 4,645,996 425,534 182,631 1,146,478 431,565 84,896 419,652 286,595 305,631 $118,662 231,444 226,483 121,854 54,820 17,421 56,558 4,800,866 439,690 189,926 1,169,151 449,131 87,754 434,938 294,940 316,056 $117,372 227,946 224,115 120,219 53,919 17,578 56,305 4,731,031 437,219 188,345 1,160,602 447,688 86,986 433,130 292,174 312,114 $132,813 237,807 243,201 127,968 57,728 19,325 61,612 5,173,068 476,427 207,273 1,215,296 495,759 95,855 469,557 316,550 338,402 $8,518,868 $8,732,325 $9,009,694 $8,906,743 $9,668,642 Figures may not add to total due to rounding. 2016 Legislative Summaries State of Arizona Department of Revenue This document contains summaries of 2016 legislation from the Fifty Second Legislature – Second Regular Session. 2016 Legislative Summaries The following is intended to give a brief summary of the major 2016 tax-related legislation impacting the Department of Revenue (DOR) and not intended to discuss the specifics of any particular enactment. Detailed summaries and the chaptered versions of these bills can also be found at www.azleg.gov. Please refer to the particular legislation for more definitive information. The general effective date for legislation enacted during the First Regular Session is August 6, 2015. All legislation will have this effective date unless otherwise noted in the summary. Income Tax HB 2114 (Chapter 231) Declaration; Independent Business Status Permits an employing unit and contractor to create a rebuttable presumption of an independent contractor relationship by prescribing a Declaration of Independent Business Status Form. HB 2190 (Chapter 331) Education omnibus Contributions to a public school for extracurricular activities for which a fee may be charged are eligible to be claimed as an individual income tax credit for contributions for public school extracurricular activities and character education programs. HB 2388 (Chapter 214) Qualified disability expenses; eligible individuals Additionally provides for an individual income tax addition for the amount of a withdrawal from and ABLE account that is not qualified disability expense to the extent not included in federal adjusted gross income. HB 2449 (Chapter 197) Taxation; self-reported errors; injured spouses Authorizes a taxpayer filing a married filing jointly tax return to apply to the Department of Revenue for protection of the taxpayer’s share of any refund from a setoff for past due state taxes, child support, spousal maintenance, debt to courts or debt to state agencies of the taxpayer’s spouse. The amount of protected share is prorated based on each spouse’s estimated tax payments or taxes withheld from wages and may not exceed taxpayer’s portion of the entire refund. Eliminates the penalty for taxpayers who voluntarily file an amended return and report an amount of additional tax due that exceeds the greater of 10% of the actual tax liability or $2000. Beginning in tax year 2016, establishes an individual income tax subtraction for any amount of qualified disability expenses that is distributed from a qualified Achieving a Better Life Experience Act (ABLE) program determined pursuant to federal law and that is included in income computing federal adjusted gross income. 1 HB 2697 (Chapter 118) Bonus depreciation; budget reconciliation; 2016-2017. Increases the percentage of depreciation allowed pursuant to the Internal Revenue Code for Arizona income tax purposes from 10% to 55% in tax year 2016 and from 55% to 100% in tax years 2017 and beyond. HB 2708 (Chapter 125) Revenue; budget reconciliation; 2016-2017 See Multiple Tax Types SB 1137 (Chapter 216) Schools; CPR instruction. Requires public schools to provide cardiopulmonary resuscitation (CPR) training to high school students by July 1, 2019. Beginning tax year 2016, contributions for CPR training in a public school are eligible to be claimed as an individual income tax credit for contributions for public school extracurricular activities and character education programs. SB 1216 (Chapter 109) Charitable donations; tax credit amounts For taxable years beginning January 1, 2016, increases the amount of tax credit a taxpayer may claim for contributions to a qualifying charitable organization (QCO) from $200 to $400 for individuals and $400 to $800 for married couples. The amount of tax credit a taxpayer may claim for contributions to a qualified foster care organization (QFCO) is increased from $400 to $500 for individuals and from $800 to $1000 for married couples. A taxpayer is eligible to claim a tax credit for separate voluntary cash contributions to both a QCO and to a QFCO. SB 1217 (Chapter 309) Charitable tax credit; contribution date For taxable years beginning January 1, 2016, contributions made to a QCO or a QFCO on or before April 15th may be claimed as a tax credit in the current or preceding taxable year. SB 1288 (Chapter 155) Internal revenue code conformity Incorporates the federal changes made in 2015 into Arizona’s definition of “internal revenue code.” SB 1289 (Chapter 156) Tax corrections See Multiple Tax Types Transaction Privilege Tax/Use Tax HB 2025 (Chapter 359) Utilities TPT; sales of propane The gross proceeds of sales or gross income derived from the sale of liquefied petroleum gas to, and purchases of liquefied petroleum gas made by, a business that is principally engaged in manufacturing or smelting operations is exempt from transaction privilege tax under the utility classification and use tax. 2 HB 2133 (Chapter 181) TPT; exemption; aerial applicators HB 2584 (Chapter 369) Data center tax relief; qualification Retroactive to April 18, 1985, the sale of agricultural aircraft used for the commercial production of agricultural crops and products is exempted from retail TPT and use tax. Retroactive to September 13, 2013, modifies the requirements and qualifications for an owner, operator or qualified colocation tenant of a computer data center to be certified by the Arizona Commerce Authority for purposes of tax relief for purchases of qualifying computer data center equipment. HB 2326 (Chapter 361) Agricultural feed; sales; tax exemption Expands the current deduction under the retail classification of the TPT for gross income or gross receipts derived from sales of livestock and poultry feed, salts, vitamins and other additives to include transactions with persons for use or consumption by their own livestock or consumption in noncommercial livestock boarding. HB 2533 (Chapter 367) Charter aircraft; tax exemption Beginning July 1, 2017, the current deduction under the retail classification of the TPT for gross income or gross receipts derived from sales of aircraft, navigational and communication instruments and other accessories and related equipment is expanded to include transactions with any person that is federally licensed or certificated to transport persons for hire. HB 2536 (Chapter 368) Fine art; TPT exemption Exempts, from retail TPT and use tax, gross income or gross receipts derived from sales of works of fine art at an auction or gallery in this state to nonresidents of this state for use outside this state if the vendor ships or delivers the work of fine art to a destination outside of this state. HB 2674 (Chapter 373) TPT exemption; amateur races Retroactively exempts the gross proceeds of sales or gross income derived from entry fees from noncompetitive races consisting of a run, walk, swim, bicycle ride or a combination of these events, from the amusement classification of the TPT. The retroactivity only applies to those qualified events where the sponsor did not collect additional monies to offset the operator’s TPT liability from the participants. Beginning March 1, 2017, the exemption is limited to noncompetitive races sponsored by nonprofit organizations. HB 2676 (Chapter 374) Utilities; manufacturing; smelting; TPT Beginning January 1, 2017, expands the exemption of gross proceeds of sales or gross income derived from the sale of electricity or natural gas to, and purchases of electricity and natural gas made by, a qualified manufacturing or smelting business from TPT under the utility classification and use tax. SB 1289 (Chapter 156) Tax corrections See Multiple Tax Types 3 SB 1310 (Chapter 223) TPT exemption; billboard rentals SB 1505 (Chapter 357) Tax exemption; natural gas delivery Exempts the leasing or renting of billboards that are used to advertise or inform and are visible from any street, road or other highway from the personal property rental classification of TPT. The gross proceeds of sales or gross income derived from gas transportation services related to purchases of natural gas made by a business that is principally engaged in manufacturing or smelting operations is exempt from transaction privilege tax under the utility classification and use tax. SB 1350 (Chapter 208) online lodging; administration; definitions Establishes the Online Lodging Marketplace Classification of the TPT consisting of the business of operating an online lodging marketplace licensed with the Department. The tax base for the online lodging marketplace classification is the gross proceeds of sales or gross income derived from the business. The tax rate for this classification is 5.5% of the tax base. For taxable periods beginning January 1, 2018, a property manager that obtains a TPT license may file a monthly electronic consolidated tax return with respect to gross proceeds or gross income derived from the individual properties under management on behalf of the property owners. The Department is required to develop an electronic consolidated return form that separately identifies each owner’s property locations and the gross income and deductions for each property location. SB 1492 (Chapter 171) Taxis, limousines, livery vehicles Exempts vehicle for hire companies that have been issued a permit by the Arizona Department of Transportation and drivers operating under a company permit on vehicle for hire transactions from the transporting classification of TPT. Property Tax HB 2481 (Chapter 364) Schools; primary property tax rates To determine the property tax levy, school districts must use the lesser of the qualifying tax rate or the district support level. The four percent budget balance carryforward cap is eliminated. SB 1157 (Chapter 144) Small property tax balance delinquency The delinquency date for property tax amounts totaling $100 or less, is extended from November 1 to December 31 at 5:00 p.m. SB 1432 (Chapter 168) Conservation easements; tax classification; registry Establishes Class Two (C) as a subclass of Class Two property for the purposes of taxation consisting of real property currently burdened by a conservation easement. The assessment ratio for property classified under Class Two (C) is 15 percent The county assessors are required to maintain a public digital registry of each parcel of property classified as Class Two (C) and periodically verify the status of properties classified as Class Two (C) and revise information in the registry as necessary. 4 SB 1523 (Chapter 173) truth in taxation; levy increases Any proposed community college district, county or municipal property tax levy that is proposed to increase by 15% or more from the previous year, excluding increases due to new construction, may only be approved by the jurisdiction’s governing body by a unanimous roll call vote. Luxury Tax HB 2708 (Chapter 125) Revenue; budget reconciliation; 2016-2017 See Multiple Tax Types SB 1289 (Chapter 156) Tax corrections See Multiple Tax Types SB 1381 (Chapter 76) Wine; direct shipment Allows a winery holding an Alcohol and Tobacco Tax Trade Bureau basic permit to apply for a direct shipment license administered by the Department of Liquor Licenses and Control (DLLC). Licensees may sell and ship wine to consumers for personal use. All wine sold under a direct shipment license is deemed to be sold in this state for the purpose of assessing TPT and luxury taxes. Multiple Tax Types/Misc. HB 2100 (Chapter 115) state agency reports; electronic submission State agencies are authorized to submit all statutorily required reports and budget estimates electronically. Each state agency must post all statutorily required reports and budget estimates on the agency’s website. HB 2343 (Chapter 239) unclaimed property; auditor contingency contracts In conducting an audit of holders of unclaimed property, including an audit performed by contingent fee auditors, the holder must be provided a notice of rights. The Department is required to establish procedures to monitor the performance of contingent fee auditors and develop metrics to evaluate the accuracy of unclaimed property auditor recommendations. The outcome of the evaluation metric can be taken into consideration when developing audit engagements. The Department must also issue a request for information by January 1, 2017, to explore the feasibility of contracting for audits relating to unclaimed property that are not contingent on the auditor performance in recovering unclaimed property. HB 2483 (Chapter 258) municipal population estimates; use A city or town may elect to use the most recent population estimates from the United States Bureau of the Census or the results of a special 5 census in the first year following that census count as the basis for apportionment of state shared revenues. The results of the special census may only be used for only one year, and beginning on July 1 in the second year after the special census, the city or town must use the most recent population estimates from the U.S. Bureau of the Census as the basis for apportionment. The most recent population estimates of the U.S. Bureau of the Census must be used annually for distribution of state shared tax revenues to cities and towns beginning on July 1 in the second year following the decennial census through June 30 of the year following the next decennial census. Before May 1 of the sixth year following a federal decennial census, a county may submit the county’s population estimate as of the fifth year following the last decennial census (as approved by the Office of Employment and Population Statistics) to be used for distribution of state shared revenues to the director of the Department of Revenue and the State Treasurer. HB 2708 (Chapter) Revenue; budget reconciliation; 2016-2017 Assessments for Local Governments The Department of Revenue (DOR) is required to assess and collect fees from local governments in FY 2015-1016 for costs incurred in providing administrative and collections services. Local governments may meet their cost sharing obligation from any source of revenue designated by the appropriate county, city or town and the contributions are excluded from applicable expenditure limitations. Tax Recovery Program DOR is required to establish a tax recovery (amnesty) program from September 1, 2016, through October 31, 2016, for the purposes of reducing or waiving civil penalties and interest for unpaid tax liabilities for any period before January 1, 2014, for annual filers, and February 1, 2015, for all other filers. Native American Veterans Tax Settlement Establishes a program for Native American veterans of the United States armed forces to claim a settlement payment for income tax withheld (but not otherwise claimed as a refund) by the Department of Defense during the period of September 1, 1993 through January 1, 2006. $2M is appropriated to pay settlement claims. The Department of Revenue and the Department of Veterans’ Services are appropriated 5%, respectively, to administer the program. Tobacco Tax Stamps Increases the discount rate a tobacco distributor may purchase tobacco stamps from 96% of the stamp’s face value to 96.48% of the stamp’s face value beginning September 30, 2016. The Department is required to remit $3.52 per stamp to each distributor as an administrative allowance for stamps with either a face value of $0 or do not require tobacco tax to be precollected. If a distributor requests a refund for tobacco stamps or redemption of unused or spoiled stamps, the refund must be issued as the total face value of the stamps, minus 4% if the stamps were purchased or acquired between October 1, 2014 and September 30, 2016 or the total face value of the stamps, minus 3.52%, if the stamps were purchased or acquired after September 30, 2016. Any rebate of stamps in which no precollected tax was required must be reimbursed at the full face value of the stamps. SB 1289 (Chapter 156) Tax corrections Makes numerous, technical, clarifying and conforming changes in the tax-related statutes in the Arizona Revised Statutes. 6 FY 2016 ANNUAL REPORT ARIZONA DEPARTMENT OF REVENUE 1600 WEST MONROE PHOENIX ARIZONA 85007 602-716-6090