ARIZONA DEPARTMENT OF REVENUE
MEMORANDUM
DATE:

November 9, 2004

FROM:

THE OFFICE OF ECONOMIC RESEARCH & ANALYSIS

September 2004 TAX FACTS
SUMMARY OF GENERAL FUND REVENUES

September 2004

Fiscal Year
Total

Individual Income Tax
Net Collections
Percent Change

$227,266,282
12.2%

$553,362,309
13.1%

Corporate Income Tax
Net Collections
Percent Change

$122,368,400
39.2%

$164,604,753
46.8%

Transaction Privilege,
Severance & Use Taxes
Net Collections
Change

$291,524,219
9.2%

$876,269,612
9.6%

Total Big Three Tax Types
Net Collections
Percent Change

$641,158,901
15.0%

$1,594,236,674
13.8%

January was the first month that the department used a new computer system to process
transaction privilege tax and withholding. Some of the reports necessary to provide Tax
Facts information are still under development. Those sections have been pulled from this
report. Once the information is available, it will be sent out.

Page 1

September 2004 Tax Facts

TAX FACTS
SEPTEMBER 2004
INDIVIDUAL INCOME TAX
Individual Income Tax Receipts
September 2004

Gross Collections
Withholding
Refunds
Urban Revenue Sharing
Net Collections

September 2003*

$85,967,739
184,456,860
(12,068,936)
(31,089,382
$227,266,282
Fiscal Year Total (04/05)

Gross Collections
Withholding
Refunds
Urban Revenue Sharing
Net Collections

% Change

$71,246,053
179,587,853
(17,853,058)
(30,422,097)
$202,558,751

20.7
2.7
(32.4)
2.2
12.2

Fiscal Year Total (03/04)*

$111,206,517
576,155,521
(40,731,584)
(93,268,145)
$553,362,309

% Change

$94,203,056
527,623,951
(41,088,613)
(91,266,290)
$489,472,105

18.0
9.2
(0.9)
2.2
13.1

*September 2003 and FYTD 03/04 refunds and net collections do not include Ladewig attorney fees.

Included in the refund amounts above are refunds relating to the alternative fuel vehicle (AFV) income tax
credit. In September 2004, the Department issued three individual income tax refunds for alternative fuel
related credits. There was $105,127 in AFV credit on the returns. After offsetting $9,440 in liability, $95,687
was refunded.

Ladewig Refunds
Ladewig, a Supreme Court tax settlement case has resulted in the distribution of 49 refunds to individual
income taxpayers during September 2004. These refunds totaled $2,627 for an average of $54. For the
fiscal year, 434,789 refunds have been issued for a total of $124,306,442 (FYTD amount accounts for
cancelled warrants). Attorney payments are not included in the refund amount and total $5,706,555 for the
fiscal year. Refunds issued as a result of the Ladewig case are not included in the total refunds listed in the
“Individual Income Tax Receipts” section above or the “Average Individual Income Tax Refund” section later
mentioned in this publication.

Individual Income Tax Document Count
In calendar year 2003, the following individual income tax returns were filed:

#
%

140X
44,149
1.9

140
1,546,452
66.9

140NR
84,078
3.6

140PY
99,313
4.3

140NPR
12
0.0

141
43,604
1.9

140A
287,618
12.4

140PTC
13,546
0.6

140EZ
190,019
8.2

140ET
2,632
0.1

OTHER
24
0.0

TOTAL
2,311,447

In calendar year 2004 the number of returns filed, and processed, are as follows:

#
%

140X
140
40,839 1,525,233

140NR
75,506

140PY
99,725

140NPR
3

141 & 141AZ
38,682

140A
293,158

140PTC
13,292

140EZ
195,721

140ET
2,599

OTHER
13

TOTAL
2,284,771

The 2,284,771 returns, representing current and prior tax years, filed through September 2004 compares to
2,217,577 returns filed during the same period of time in 2003 for an annual increase of 3.0%. For tax year
2003 filed in 2004, 2,178,781 returns have been filed, a 2.6% increase over filings in September 2003 for tax
year 2002.

Page 2

September 2004 Tax Facts

Year-Over-Year Comparison of Resident Taxpayers
Comparisons of Federal Adjusted Gross Income (FAGI) and tax liability growth between two tax years can
be made by using data from taxpayers who have filed for both calendar years and have maintained the
same filing status for both years. The Department of Revenue has received 1,556,359 returns in calendar
year 2004 for tax year 2003 from filers who also have returns on record from calendar year 2003 with the
same marital status. On average, these filers experienced a 3.6% increase in FAGI and a 5.9% increase in
tax liability. More specifically, 35.8% of these filers experienced a decrease in tax liability; on average a
decrease of 36.6% with a corresponding average decrease in FAGI of 21.6%. Filers with an increase in tax
liability totaled 796,721 or 51.1% with an average FAGI increase of 25.7% and an average tax liability
increase of 48.4%.

Average Individual Income Tax Refund
Net of Ladewig refunds.
Average
$501.15
$546.15
(8.2)

2004 CYTD
2003 CYTD
% Change

Number
1,467,453
1,456,805
0.7

"New" Filers in Calendar Year 2004
Table 1 attached to this report, presents the number of "new" returns filed in calendar year 2004. "New"
returns are for those filers who did not file in the previous calendar year. Therefore, these filers could be
new full-year residents of Arizona, or they may be newly required to file an individual income tax return.
(The filer may not have earned enough income in the previous year to file, such as a recent graduate just
entering the work force.) The table indicates that 235,052 "new" returns have been filed thus far in 2004,
representing approximately 284,097 persons, not including dependents. The average Federal Adjusted
Gross Income for these 235,052 returns is $19,745, with an average tax liability of $316. The right half of
this table presents characteristics of the filers represented on the returns. Of all "new" returns, 16.4% had a
married filing joint filing status, 7.4% claimed a 65 and Over Exemption and 33.0% claimed dependents.

Individual Income Tax Estimated Payments
Taxpayers are required to make estimated payments if their Arizona gross income will exceed $75,000, in
an amount which will represent unpaid tax liability at the end of the taxpayer's tax year. Total estimated
payments paid with form 140ES for tax year 2002 was $295.4 million, for an average of $1,534. An
additional $75.0 million in estimated payments came from 2001 tax returns that applied their refunds as a
2002 estimated payment, for an average of $1,685. Estimated payments received through September 2004
for tax year 2004 are as follows:
9/04
8/03
9/04
9/03
9/04
9/03

140ES payment
140ES payment
% change
Average payment
Average payment
% change
Applied refund
Applied refund
% change

Total 9/04
Total 9/03
% change

$75,436,574
$11,660,153
547.0
$1,784
$985
81.1
$5,114,610
$5,234,385
(2.3)
$80,551,184
$16,894,538
376.8

Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative

$193,037,528
$107,006,901
80.4
$1,481
$1,132
30.8
$36,274,441
$38,842,084
(6.6)
$229,311,969
$145,848,985
57.2

Withholding
Withholding payments are received from employers and applied towards a specific quarter for the
designated year. Information is gathered for 15 months for any given quarter. For example, from January
2001 through March 2003, $544,701,458 was received for the first quarter of 2002. The latest complete
quarter (15 months of information has been compiled) is the second quarter of 2003, which shows an
increase of 2.5% in withholding payments over the second quarter of 2002. Growth in quarters for which
information is still being gathered is as follows:
Page 3

September 2004 Tax Facts

3rd Quarter 2003
4th Quarter 2003

1st Quarter 2004
2nd Quarter 2004
3rd Quarter 2004

(2.8%)
0.8%

2.4%
(1.9%)
(1.0%)

Current choices for withholding are 0%, 10%, 18%, 21%, 23%, 29% or 34% as the percent of federal taxes
to be withheld for state taxes. The 0% option is only available to those individuals who had no liability in the
prior tax year and expect no tax liability for the current year.

Property Tax Credits
Arizona allows a refundable property tax credit for those who are age 65 or older or who received Title 16,
SSI payments and pay property tax on a home. To qualify for this credit, household income must be below
$3,751 for individuals that live alone, or $5,501 for those that live with others. The maximum credit is $502.
Number
14,971
14,779
1.3

Calendar Year 2004
Calendar Year 2003
% Change

Amount
$5,273,190
$5,044,397
4.5

Average
$352.93
$341.32
3.4

Clean Elections
As a result of the November 1998 voter approval of the Citizens Clean Elections, Arizona’s income
taxpayers can make a donation to the Citizens Clean Elections Commission through an income tax check-off
or through a voluntary donation. The following is for tax year 2003:

Check Off
Voluntary Donation
Number of Returns

September 2004
$32,134
$552
4,180

Calendar Year Total
$4,131,720
$46,112
568,697

Contributions on the Individual Income Tax Return
Through September 2004, individual income tax return filers have made the following contributions:

Wildlife
Child Abuse
Special Olympics
Neighbors Helping
AID to Education
Domestic Violence Shelter
Democratic Party
Republican Party
Libertarian Party

Number
9,498
10,365
4,992
2,899
603
7,515
1,109
699
86

Amount
$166,923
190,512
78,137
38,479
43,268
137,482
26,682
16,723
1,730

Average
$17.57
18.38
15.65
13.27
71.75
18.29
24.06
23.92
20.12

CORPORATE INCOME TAX
Corporate Income Tax Receipts
Gross Collections
Refunds
Net Collections

Gross Collections
Refunds
Net Collections

September 2004
$128,929,320
($6,570,919)
$122,358,400

September 2003
% Change
$94,502,857
36.4
($6,579,280)
(0.1)
$87,923,577
39.2

Fiscal Year Total (04/05) Fiscal Year Total (03/04) % Change
$177,891,090
$129,075,794
37.8
($13,286,337)
($16,927,784
(21.5)
46.8
$164,604,753
$112,148,010

Page 4

September 2004 Tax Facts

Corporate Estimated Payments
Corporations are required to file estimated tax payments throughout the year only if (1) their Arizona tax
liability exceeds $1,000 and (2) they are required to file federal estimated tax payments.
September 2004
September 2003
% Change

$115,893,050
$88,631,115
30.8

Calendar Year Total
Calendar Year Total
% Change

$366,963,561
$306,134,309
10.9

All corporations with an income tax liability of $20,000 or greater are required to make their estimated tax
payments through electronic funds transfer (eft). The table below shows the number of these eft estimated
payments, by size of payment, for September 2004 and for the calendar year.
Size of Payment
Î
September 2004
September 2003
CY 2004
CY 2003

Less than
$50,000

$50,000
up to
$100,000

$100,000
up to
$500,000

$500,000
up to
$1,000,000

$1,000,000
up to
$10,000,000

$10,000,000
and more

Total

%
chg

463
455

79
58

101
95

11
11

15
16

1
0

670
635

5.5

2,107
2,014

292
231

345
289

49
54

56
54

1
0

2,850
2,642

7.9

Corporate Refunds
Corporate refunds paid in any state fiscal year are for a mixture of corporate fiscal years. The table below
presents the percent of refunds paid in FY 2003/04 by corporate fiscal year. For example, in FY 2003/04,
9.2% of the refund dollars paid were for corporate fiscal years ending in 1999 or before. The percentages
are for refunds paid through the fiscal year.
Corporate Fiscal Year-End:
FY 2003/04

99 & Prior
9.2%

00
2.7%

01
3.0%

02
74.5%

03
10.4%

04
0.2%

Corporate Fiscal Year-End:
FY 2004/05

00 & Prior
10.3%

01
1.9%

02
3.1%

03
79.9%

04
4.8%

05
0.0%

The corporate refunds shown above are those refunds for which a check is mailed to the corporation.
Sometimes corporations choose to apply their refund as an estimated payment. The following table
presents refunds applied as estimated payments in the most recent month and for the calendar year.
September 2004
September 2003
% Change

$8,872,986
$1,802,981
392.1

Calendar Year Total
Calendar Year Total
% Change

$57,535,847
$66,422,890
(13.4)

Corporate Income Tax Document Count
The Arizona Department of Revenue received 99,009 corporate returns showing a fiscal year-end of 2002.
The type of return received is indicated below:
#
%

120 X (amended)
289
0.3

120 (regular)
34,612
34.3

120S (S corp)
54,649
54.2

99T (exempt org.)
355
0.4

120 A (short form)
10,889
10.8

Through September 2004, 93,485 documents have been received for a fiscal year-end of 2003, distributed
as follows:
#
%

120 X (amended)
182
0.2

120 (regular)
27,645
29.6

120S (S corp)
54,485
58.3

99T (exempt org.)
287
0.3

120 A (short form)
10,886
11.6

The figures shown above for the 2003 returns are most meaningful when compared to 2002 returns received
during the same period of time in the previous year. Through September 2003, the Arizona Department of
Page 5

September 2004 Tax Facts

Revenue received 78,545 documents with a fiscal year-end of 2002. Compared to 2003 documents, the
department has seen a 19.0% increase in the number of corporate returns received at this point of time in
the calendar year.

Urban Revenue Sharing Returned to Cities/Towns
Incorporated cities and towns receive a share of net individual and corporate income tax collections, called
Urban Revenue Sharing. The amount of money to be distributed during Fiscal Year 2004/05 is 15.0% of net
proceeds from Fiscal Year 2002/03 income tax. Amounts returned for September 2004 are shown on Table
2, at the end of this report.

TRANSACTION PRIVILEGE, SEVERANCE AND USE TAXES
Transaction Privilege, Severance and Use Tax Receipts
The Arizona transaction privilege and severance tax consists of many classifications of tax. These
classifications include but are not limited to retail, contracting, amusements, restaurants and bars,
hotel/motel and mining severance tax. The collections for all such categories are divided, per statute, into
two parts. One part is called distribution base; the other part is known as non-shared. The division of
collections into these two parts varies from category to category. For example, retail sales tax is 40%
distribution base and 60% non-shared. In contrast, contracting is 20% distribution base and 80% nonshared. Use tax is 100% non-shared.
At the close of each month, transaction privilege and severance tax collections are aggregated by category
and total distribution base and non-shared portions are calculated. The amount shown as "Use Tax" in the
table below includes use tax, use inventory tax and jet fuel use tax. Education tax is in accordance with
Proposition 301 resulting in an additional 0.6% education tax being added to most business classifications.
The "Other Revenue" category includes county excise, road, jail and hospital taxes and various other excise
taxes, such as the 911 excise tax.
September 2004
Distribution Base
Non shared
Use Tax
Education Tax
Other Revenues
Total Collections

Distribution Base
Non shared
Use Tax
Education Tax
Other Revenues
Total Collections

September 2003

% change

$115,621,740

$107,496,222

7.6%

229,416,549

210,353,785

9.1%

48,434,236

45,281,958

7.0%

43,101,597

39,875,338

8.1%

22,229,731
$458,803,853

19,518,769
$422,526,071

13.9%
8.6%

Fiscal Year Total (04/05)

Fiscal Year Total (03/04)

$350,764,809

$323,227,912

8.5%

687,884,528

630,858,029

9.0%

147,034,572

135,808,983

8.3%

129,686,768

118,521,443

9.4%

67,406,302
$1,382,776,979

57,345,848
$1,265,762,215

17.5%
9.2%

% change

Distribution of Transaction Privilege, Severance and Use Tax Receipts
Of the distribution base portion of transaction privilege and severance taxes, described above, 25% is
returned to incorporated cities/towns, 40.51% is returned to counties and 34.49% goes to the state general
fund with the exception of mining severance tax. All of the non-shared revenue and use tax is deposited into
the general fund. Therefore, the "Retained By State" figure presented below includes all non-shared portion
of transaction privilege tax, use tax and 34.49% of the distribution base collections. The education tax is
distributed in accordance with Proposition 301. “Other" revenues are returned to the administering authority.
Page 6

September 2004 Tax Facts

September 2004
Retained by State
Returned to Counties
Returned to Cities
Education Tax
Other Revenues
Total Collections

September 2003

$291,524,219

$266,948,000

9.2%

46,838,367

43,546,719

7.6%

28,905,435

26,874,055

7.6%

43,101,597

39,875,338

8.1%

48,434,236
$458,803,853

45,281,958
$422,526,071

7.0%
8.6%

Fiscal Year Total (04/05)
Retained by State
Returned to Counties
Returned to Cities
Education Tax
Other Revenues
Total Collections

% change

Fiscal Year Total (03/04)

% change

$876,269,612

$799,685,184

9.6%

142,094,824

130,939,627

8.5%

87,691,202

80,806,978

8.5%

129,686,769

118,521,443

9.4%

147,034,572
$1,382,776,979

135,808,983
$1,265,762,215

8.3%
9.2%

Transaction Privilege and Severance Tax Collections By Class
September 2004

Tax Rate
Transporting
Non-Metal Mining Oil/Gas
Utilities
Communications
Private Car/Pipelines
Publishing
Job Printing
Restaurants & Bars
Amusements
Commercial Lease
Rental of Personal Property
Contracting
Feed Wholesale
Retail
Mining Severance
Timber Severance
Hotel/Motel
Membership Camping
Use Tax
Rental Occupancy Tax
Jet Fuel
Telecommunications Devices
Telecomm

Fiscal Year Total

% Chg

$324,176

21.0%

$803,435

-12.3%

3.125%

734,667

-2.3%

2,366,578

9.4%

5.6%

36,527,931
12,515,196
68,199
566,751
1,475,640
28,891,127
2,746,312
1,629
12,467,741
65,048,221

8.2%
7.6%
-22.3%
-28.3%
3.9%
8.5%
11.6%
-69.3%
9.4%
21.8%

102,512,018
37,182,691
188,619
1,706,293
4,327,241
88,498,256
9,442,691
30,178
40,324,177
191,537,901

6.0%
4.3%
2.1%
-17.0%
-2.0%
9.3%
6.9%
-202.3%
6.1%
18.4%

0
175,914,165
1,083,880
804
6,190,659
3,647
22,269,013
1,787
433,370

NA
4.2%
321.8%
3.2%
6.1%
7.9%
14.1%
-82.9%
44.4%

0
535,602,960
3,128,381
2,401
19,772,439
13,551
67,445,583
(12,020)
1,211,574

NA
6.6%
367.4%
51.8%
7.3%
-49.6%
17.6%
-138.5%
18.0%

NA

0

NA

346,751

-10.7%

1,067,182

-23.4%

5.6%
5.6%
5.6%
5.6%
5.6%
5.6%
0%
5.6%
3.75% - 5.6%
Repealed
5.6%
2.5%
$2.13/$1.51 per 1000 board ft

5.5%
5.6%
5.6%
3.0%
$.0305/$.0105 gal

1.1
----

School for the Deaf and Blind
Poison Control

% Chg

5.6%

----

Teratogen Funding

117,283

-9.3%

359,099

177.6%

91,787

-9.3%

281,033

-40.6%

5,099

NA

10,115

NA

911 Wireline

$0.37/month per active service

1,157,322

4.8%

3,441,375

3.0%

911 Wireless
Total

$0.37/month per active service

1,062,092
$370,045,249

2.1%
8.8%

3,161,858
$1,114,405,611

7.1%
9.3%

The Use/Use Inventory category shown on the previous page includes jet fuel use tax. These collections
include only the individual classes of transaction privilege tax, severance tax and use tax. The total does not
include license fees or any other fees collected by the Department.

Page 7

September 2004 Tax Facts

Transaction Privilege and Severance Tax Taxable Sales By Class1
September 2004

% Chg

Fiscal Year Total

% Chg

Transporting

$6,483,521

21.0%

$16,091,734

Non-Metal Mining Oil/Gas

23,509,355

-2.3%

75,819,279

9.6%

Utilities

730,558,611

8.2%

2,052,270,014

6.1%

Communications

250,303,918

7.6%

744,540,504

4.4%

1,363,972

-22.3%

3,776,431

2.2%

11,338,390

-28.2%

34,166,564

-16.9%

Private Car/Pipelines
Publishing
Job Printing
Restaurants & Bars
Amusements
Commercial Lease
Rental of Personal Property
Contracting

-12.2%

29,512,809

3.9%

86,657,349

-1.9%

577,835,429

8.5%

1,772,257,578

9.5%

54,926,230

11.6%

189,125,256

7.0%

120,210

-124.7%

880,794

-422.1%

249,354,814

9.4%

807,474,749

6.2%

1,322,436,660

23.8%

3,858,919,846

19.3%

Feed Wholesale

0

NA

0

NA

3,520,222,503

4.2%

10,726,590,540

6.8%

Mining Severance

43,355,199

321.8%

125,229,425

367.7%

Timber Severance

488

33.6%

1,226

65.1%

112,557,438

6.1%

360,111,646

7.5%

72,936

NA

272,547

-42.0%

444,690,048

14.1%

1,348,516,868

17.8%

59,583
$7,378,702,115

-82.9%
9.4%

(398,881)
$22,202,303,470

-138.3%
9.8%

Retail

Hotel/Motel
Membership Camping
Use Tax
Rental Occupancy Tax
Total

Telecommunications Devices, 911 Excise and 911 Wireless Service classifications previously listed in the
collections table are not elements of calculated taxable income and therefore, are not included in the above
table. The Use/Use Inventory category shown above does not include jet fuel use tax. Since the jet fuel use
tax is a gallonage tax, this too can not be computed as taxable income. Timber Severance includes only
sales subject to a repealed rate. The current tax is per board feet upon which taxable income cannot be
computed.

Accounting Credit
A credit equal to one percent of the amount of tax due, up to $10,000 per calendar year, is allowed to
businesses for expenses incurred during the accounting and reporting of Transaction Privilege Tax. Due to
our new processing system, the report needed to provide this data is not available.

Taxable Sales by SIC Code Range
The taxable sales by SIC (Standard Industrial Classification) code range is undergoing a conversion to
NAICS codes. The information since January 2004 is not yet available. Once it is available, it will be sent
under separate cover.

Transaction Privilege and Severance Tax Returned to Counties
Taxpayers reported the following taxable transactions and tax collections by county. The share of the
revenues returned to each county for September 2004 is shown in the County Share column.

1These Taxable Sales figures are calculated on a per return basis, by taking collections and dividing them by the appropriate tax rate.
These figures may not match other Taxable Sales figures calculated on the aggregate.

Page 8

September 2004 Tax Facts

Apache
Cochise
Coconino
Gila
Graham
Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma
Total

County Share

% of Total

FYTD County Share

% Change

$327,810

0.7%

$1,010,790

6.9%

820,349

1.7%

2,438,121

5.4%

1,268,830

2.7%

3,826,714

4.2%

353,184

0.7%

1,072,860

4.5%

204,215

0.4%

609,026

6.4%

157,480

0.4%

456,386

28.7%

128,175

0.3%

382,774

7.7%

27,621,939

61.3%

83,505,900

8.8%

1,215,073

2.8%

3,670,911

12.1%

723,033

1.6%

2,165,740

6.9%

6,643,694

14.4%

19,637,585

7.6%

1,182,330

2.6%

3,512,213

8.7%

282,421

0.6%

858,850

5.1%

1,526,640

3.4%

4,541,426

9.4%

1,091,544
$43,546,719

2.4%

3,250,331
$130,939,627

9.4%
8.5%

Transaction Privilege and Severance Tax Returned to Cities/Towns
The portion of transaction privilege and severance tax returned to each incorporated city or town for July
2004 is shown on Table 3, attached to this report.

County Tax Collections
The following county-imposed tax collections were received by the Department of Revenue during
September 2004 and returned to the counties. The rental car surcharge in Maricopa County is $2.50 per car
and in Pima County is $3.50 per car. The RV Surcharge in Pima County is $0.50/day on each lease or
rental of a parking space for recreational vehicles.
Road Tax

Excise Tax

Apache

$98,920

Cochise

525,493

Coconino
Gila

981,765
$226,110

93,645

Greenlee

74,018

La Paz

68,382
24,463,476
545,681

Navajo

494,594

Santa
Cruz
Yavapai
Yuma

RV
Surcharge

Hospital
Tax/Health
SVCS Dist

Capitol
Projects

Tourism
Authority

$243,974

68,383

Pima

($46)
$407,197

113,056
921,104

Stadium
Tax

$588,650

9,144,779

Mohave

Pinal

Rental Car
Surcharge

220,717

Graham

Maricopa

Jail Tax

$497

$1,025,806

7,068

906,378
195,395
1,150,879

576,096

761,756

761,681

758,870

Page 9

September 2004 Tax Facts

OTHER TAXES
Luxury Taxes
The following revenues were received from luxury taxes in September 2004. The table compares the
receipts to September 2003 and also compares fiscal year (FY) totals. Figures may not add to total due to
rounding.

Spirituous
Vinous
Malt
Cigarette
Other Tobacco
Tobacco Licenses
Total

September 2004
$1,862,737
522,060
1,528,553
22,123,760
762,658
250
$26,800,018

September 2003
$1,616,658
753,302
1,795,068
19,953,929
637,904
425
$24,757,286

% Change
15.2
(30.7)
(14.8)
10.9
19.6
(41.2)
8.3

Spirituous
Vinous
Malt
Cigarette*
Other Tobacco
Tobacco Licenses
Total

Fiscal Year (04/05)
$5,347,740
2,039,848
5,593,243
67,945,451
2,124,076
875
$83,051,234

Fiscal Year (03/04)
$4,968,278
2,102,497
5,348,894
63,836,896
1,871,000
1,550
$78,129,116

% Change
7.6
(3.0)
4.6
6.4
13.5
(43.5)
6.3

*Through September 2004, $435,400 of cigarette and tobacco tax collections has been allocated for
administrative expenses and is not included in the cigarette collections above.
General Fund revenues from luxury taxes:

Spirituous
Vinous
Malt
Cigarette
Other Tobacco
Tobacco Licenses
Total

September 2004
$1,303,916
130,072
382,138
2,999,411
118,212
250
$4,933,999

Fiscal Year (04/05)
$3,743,418
508,038
1,398,310
9,204,349
330,504
875
$15,185,495

Other dedicated revenues from luxury taxes:

Correction Fund revenues
Tobacco Tax & Health Care Fund2
Tobacco Products Tax Fund3
Wine Promotional Fund revenues
Drug Treatment & Education Fund revenues
Corrections Revolving Fund revenues

September 2004
$1,890,106
$7,759,074
$11,516,583
$1,773
$499,183
$199,301

Fiscal Year (04/05)
$6,363,293
$23,654,580
$35,399,047
$7,695
$1,746,913
$694,210

2 Formerly the Health Care Fund
3 This Fund was created by Prop. 303, which increased cigarette & other tobacco products tax rates in November 2002.

Page 10

September 2004 Tax Facts

Estate Tax
September 2004
September 2003
% Change

$4,528,563
$3,049,954
48.5

Fiscal Year to Date
Fiscal Year to Date
% Change

$12,754,491
$10,624,500
20.0

September 2004
September 2003
% Change

$38,303
$38,455
(0.4)

Fiscal Year to Date
Fiscal Year to Date
% Change

$145,306
$146,925
(1.1)

$681,226
$402,860
69.1

Fiscal Year to Date
Fiscal Year to Date
% Change

$1,803,124
$2,239,238
(19.5)

Bingo

Unclaimed Property
September 2004
September 2003
% Change

Please note that some totals throughout Tax Facts may not add due to rounding.

SOURCE: THE OFFICE OF ECONOMIC RESEARCH & ANALYSIS, ARIZONA DEPARTMENT OF
REVENUE

Page 11

September 2004 Tax Facts

TABLE 1
“New” Returns Filed in 2004 for Tax Year 2003
Through September 2004
CHARACTERISTICS OF TAXPAYERS
Federal Adjusted

Number

% of

Average

Average

%

%

Gross Income Bracket

of
Returns

Total

FAGI

Tax Due

Married
Joint

Single

%

%

%

%

Unmarried Married Over 65
With
Head
Separate
Dependents

Negative FAGI
$0-$5,000

2,585
52,689

1.1%
22.4%

-$15,057
$2,688

$1
$1

16.5%
3.9%

76.6%
85.2%

4.2%
10.0%

2.8%
0.9%

14.3%
3.9%

10.6%
14.8%

$5,000-$10,000
$10,000-$15,000

49,663
34,020

21.1%
14.5%

$7,362
$12,346

$25
$91

7.1%
13.9%

73.8%
57.5%

17.9%
26.9%

1.2%
1.7%

5.7%
8.4%

25.9%
38.4%

$15,000-$20,000
$20,000-$25,000

24,412
16,736

10.4%
7.1%

$17,362
$22,362

$169
$273

20.4%
25.2%

48.8%
43.1%

28.5%
28.5%

2.4%
3.1%

8.6%
8.0%

43.2%
46.4%

$25,000-$30,000
$30,000-$40,000

11,864
15,035

5.0%
6.4%

$27,383
$34,480

$391
$554

29.3%
36.4%

40.4%
37.5%

26.5%
22.0%

3.8%
4.1%

8.1%
8.6%

46.4%
45.1%

$40,000-$50,000
$50,000-$75,000

8,941
11,231

3.8%
4.8%

$44,629
$60,641

$776
$1,158

48.1%
62.9%

31.7%
24.3%

17.0%
10.4%

3.2%
2.4%

10.2%
12.9%

46.3%
46.0%

4,170
3,053

1.8%
1.3%

$85,446
$129,090

$1,857
$3,299

72.6%
74.4%

19.2%
18.0%

6.6%
6.1%

1.7%
1.5%

14.5%
16.2%

45.1%
43.2%

$200,000-$500,000
$500,000-$1,000,000

540
67

0.2%
0.0%

$283,123
$654,918

$9,607
$24,072

72.6%
56.5%

20.7%
30.4%

4.6%
5.8%

2.2%
7.2%

21.2%
24.6%

38.0%
33.3%

$1,000,000 and over

46

0.0% $1,827,819

$79,118

59.6%

36.2%

4.3%

0.0%

19.1%

19.1%

235,052

$19,745

$316

19.7%

59.3%

19.1%

2.0%

7.4%

33.0%

2.2%

7.6%

34.7%

$75,000-$100,000
$100,000-$200,000

Total

*An asterisked line indicates that the information cannot be released due to confidentiality laws.

NEW RETURNS FILED IN 2003 FOR TAX YEAR 2002
Total

220,129

$20,256

$329

20.2%

57.0%

20.6%

“NEW" Returns means that there was no return filed by the taxpayer in the previous filing year. This may or may not
mean the filer is new to the state.

Page 12

September 2004 Tax Facts

TABLE 2
Urban Revenue Sharing Returned to Cities/Towns
September 2004
City
Apache County
Eagar
Springerville
St. Johns
Cochise County
Benson
Bisbee
Douglas
Huachuca City
Sierra Vista
Tombstone
Willcox
Coconino County
Flagstaff
Fredonia
Page
Williams
Gila County
Globe
Hayden
Miami
Payson
Winkelman
Graham County
Pima
Safford
Thatcher
Greenlee County
Clifton
Duncan
La Paz County
Parker
Quartzsite
Maricopa County
Avondale
Buckeye
Carefree
Cave Creek
Chandler
El Mirage
Fountain Hills
Gila Bend
Gilbert
Glendale
Goodyear
Guadalupe
Litchfield Park
Mesa
Paradise Valley
Peoria
Phoenix
Queen Creek
Scottsdale

Distribution

Population

$30,921
15,119
27,203

4,033
1,972
3,548

36,119
46,692
126,682
13,425
289,621
11,531
28,621

4,711
6,090
16,523
1,751
37,775
1,504
3,733

405,539
7,943
52,205
21,790

52,894
1,036
6,809
2,842

57,395
6,839
14,843
104,425
3,396

7,486
892
1,936
13,620
443

15,250
70,782
30,837

1,989
9,232
4,022

19,904
6,226

2,596
812

24,074
25,715

3,140
3,354

275,115
65,147
22,441
28,583
1,356,594
58,338
155,142
15,181
841,048
1,677,635
144,991
40,083
29,211
3,049,754
104,762
830,828
10,128,471
33,091
1,554,142

35,883
8,497
2,927
3,728
176,939
7,609
20,235
1,980
109,697
218,812
18,911
5,228
3,810
397,776
13,664
108,364
1,321,045
4,316
202,705

City
Surprise
Tempe
Tolleson
Wickenburg
Youngtown
Mohave County
Bullhead City
Colorado City
Kingman
Lake Havasu City
Navajo County
Holbrook
Pinetop-Lakeside
Show Low
Snowflake
Taylor
Winslow
Pima County
Marana
Oro Valley
Sahuarita
South Tucson
Tucson
Pinal County
Apache Junction
Casa Grande
Coolidge
Eloy
Florence
Kearny
Mammoth
Maricopa
Superior
Santa Cruz County
Nogales
Patagonia
Yavapai County
Camp Verde
Chino Valley
Clarkdale
Cottonwood
Jerome
Prescott
Prescott Valley
Sedona
Yuma County
San Luis
Somerton
Wellton
Yuma
TOTAL

Page 13

Distribution
$236,512
1,216,180
38,136
38,964
23,078

Population
30,848
158,625
4,974
5,082
3,010

258,907
25,562
153,869
321,539

33,769
3,334
20,069
41,938

37,699
27,463
58,998
34,195
24,350
72,990

4,917
3,582
7,695
4,460
3,176
9,520

103,934
244,838
24,856
42,092
3,731,528

13,556
31,934
3,242
5,490
486,699

243,918
193,393
59,695
79,545
116,853
17,243
13,509
38,319
24,948

31,814
25,224
7,786
10,375
15,241
2,249
1,762
4,998
3,254

160,072
6,755

20,878
881

72,461
62,617
26,237
70,376
2,522
260,203
180,443
78,142

9,451
8,167
3,422
9,179
329
33,938
23,535
10,192

117,474
35,673
14,023
595,612

15,322
7,266
1,829
77,685

$31,089,382

4,057,566

September 2004 Tax Facts

TABLE 3
Transaction Privilege and Severance Tax Returned to Cities/Towns
September 2004
City
Apache County
Eagar
Springerville
St. Johns
Cochise County
Benson
Bisbee
Douglas
Huachuca City
Sierra Vista
Tombstone
Willcox
Coconino County
Flagstaff
Fredonia
Page
Williams
Gila County
Globe
Hayden
Miami
Payson
Winkelman
Graham County
Pima
Safford
Thatcher
Greenlee County
Clifton
Duncan
La Paz County
Parker
Quartzsite
Maricopa County
Avondale
Buckeye
Carefree
Cave Creek
Chandler
El Mirage
Fountain Hills
Gila Bend
Gilbert
Glendale
Goodyear
Guadalupe
Litchfield Park
Mesa
Paradise Valley
Peoria
Phoenix
Queen Creek

Distribution

Population

$28,730
14,048
25,275

4,033
1,972
3,548

33,560
43,384
117,707
12,474
269,103
10,714
26,593

4,711
6,090
16,523
1,751
37,775
1,504
3,733

376,808
7,380
48,506
20,246

52,894
1,036
6,809
2,842

53,329
6,354
13,792
97,027
3,156

7,486
892
1,936
13,620
443

14,169
65,767
28,652

1,989
9,232
4,022

18,493
5,785

2,596
812

22,369
23,893

3,140
3,354

255,625
60,531
20,851
26,558
1,260,484
54,205
144,151
14,105
781,463
1,558,781
134,719
37,243
27,142
2,833,691
97,340
771,967
9,410,908
30,746

35,883
8,497
2,927
3,728
176,939
7,609
20,235
1,980
109,697
218,812
18,911
5,228
3,810
397,776
13,664
108,364
1,321,045
4,316

City
Scottsdale
Surprise
Tempe
Tolleson
Wickenburg
Youngtown
Mohave County
Bullhead City
Colorado City
Kingman
Lake Havasu City
Navajo County
Holbrook
Pinetop/Lakeside
Show Low
Snowflake
Taylor
Winslow
Pima County
Marana
Oro Valley
Sahuarita
South Tucson
Tucson
Pinal County
Apache Junction
Casa Grande
Coolidge
Eloy
Florence
Kearny
Mammoth
Maricopa
Superior
Santa Cruz County
Nogales
Patagonia
Yavapai County
Camp Verde
Chino Valley
Clarkdale
Cottonwood
Jerome
Prescott
Prescott Valley
Sedona
Yuma County
San Luis
Somerton
Wellton
Yuma
TOTAL

Page 14

Distribution
$1,444,037
219,756
1,130,018
35,434
36,203
21,443

Population
202,705
30,848
158,625
4,974
5,082
3,010

240,565
23,751
142,968
298,759

33,769
3,334
20,069
41,938

35,028
25,518
54,818
31,772
22,625
67,819

4,917
3,582
7,695
4,460
3,176
9,520

96,571
227,493
23,095
39,110
3,467,164

13,556
31,934
3,242
5,490
486,699

226,638
179,692
55,466
73,910
108,574
16,022
12,552
35,605
23,181

31,814
25,224
7,786
10,375
15,241
2,249
1,762
4,998
3,254

148,731
6,276

20,878
881

67,327
58,180
24,378
65,390
2,344
241,769
167,659
72,606

9,451
8,167
3,422
9,179
329
33,938
23,535
10,192

109,151
51,762
13,030
553,415

15,322
7,266
1,829
77,685

$28,905,435

4,057,566

September 2004 Tax Facts