ARIZONA DEPARTMENT OF REVENUE
MEMORANDUM
DATE:

March 15, 2005

FROM:

THE OFFICE OF ECONOMIC RESEARCH & ANALYSIS

DECEMBER 2004 TAX FACTS
SUMMARY OF GENERAL FUND REVENUES
December 2004

Fiscal Year Total

Individual Income Tax
Net Collections
Percent Change

$ 267,063,376
16.3%

$ 1,182,596,154
15.2%

Corporate Income Tax
Net Collections
Percent Change

$ 137,232,790
61.1%

$ 342,740,713
61.2%

Transaction Privilege,
Severance & Use Taxes
Net Collections
Change

$ 287,618,657
9.9%

$ 1,747,580,734
9.6%

Total Big Three Tax Types
Net Collections

$691,914,823

$ 3,272,917,601

20.0%

14.5%

Percent Change

January 2004 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

December 2004 Tax Facts

TAX FACTS
DECEMBER 2004
INDIVIDUAL INCOME TAX
Individual Income Tax Receipts
December 2004
$ 81,181,241
233,620,890
(16,649,373)
(31,089,382)
$ 267,063,376

Gross Collections
Withholding
Refunds
Urban Revenue Sharing
Net Collections

December 2003
% Change
$ 56,932,488
42.6
213,979,177
9.2
(10,764,756)
54.7
(30,422,097)
2.2
$ 229,724,812
16.3

Fiscal Year Total (04/05) Fiscal Year Total (03/04)* % Change
Gross Collections
$ 230,939,386
$ 180,894,491
27.7
Withholding
1,219,209,691
1,123,854,682
8.5
Refunds
(81,016,634)
(95,724,390)
(15.4)
Urban Revenue Sharing
(186,536,289)
(182,532,579)
2.2
Net Collections
$ 1,182,596,154
$ 1,026,492,204
15.2
* FYTD 03/04 refunds and net collections do not include Ladewig attorney fees.

In December 2004, the Department did not issue any individual income tax refunds for alternative fuel
related credits. One amended corporate income tax return was processed with an additional $1 million in
refund claim, the result of an audit settlement

Ladewig Refunds
In December 2004, the department issued 610 warrants totaling $ 602,995 for Ladewig, a Supreme Court
tax settlement case. For the fiscal year, 435,786 refunds have been issued for a total of $ 125,317,925.
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
46,264 1,575,957
2.0
66.5

140NR
88,795
3.7

140PY
102,431
4.3

140NPR
3
0.0

141 & 141AZ
44,198
1.9

140A
297,353
12.5

140PTC
13,315
0.6

140EZ
197,269
8.3

140ET
2,625
0.1

OTHER
13
0.0

The 2,368,223 returns, representing current and prior tax years, filed through December 2004 compares to
2,311,447 returns filed during the same period of time in 2003 for an annual increase of 2.4%. For tax year
2003 filed in 2004, 2,248,220 returns have been filed, a 2.6% increase over filings through December 2003 for
tax year 2002.

Page 2

December 2004 Tax Facts

TOTAL
2,368,223

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 1,594,913 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 4.0% increase in FAGI and a 6.7% increase in tax liability.
More specifically, 35.8% of these filers experienced a decrease in tax liability; on average a decrease of 38.4%
with a corresponding average decrease in FAGI of 22.7%. Filers with an increase in tax liability totaled
814,585 or 53.2% with an average FAGI increase of 27.8% and an average tax liability increase of 53.2%.

Average Individual Income Tax Refund
Net of Ladewig refunds.
Average
$515.15
563.96
(8.7)

2004 CYTD
2003 CYTD
% Change

Number
1,506,740
1,496,764
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 239,280 "new" returns have been filed thus far in 2004,
representing approximately 289,925 persons, not including dependents. The average Federal Adjusted
gross Income for these 239,280 returns is $20,074, with an average tax liability of $334. The right half of
this table presents characteristics of the filers represented on the returns. Of all "new" returns, 16.5% had a
married filing joint filing status, 7.5% claimed a 65 and Over Exemption and 32.9% 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 December 2004
for tax year 2004 are as follows:
12/04
12/03
12/04
12/03
12/04
12/03

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

Total 12/04
Total 12/03
% change

$ 29,415,992
6,960,182
322.6
$ 3,358
1,673
100.7
$ 15,122,903
1,420,281
964.8
$ 44,538,894
8,380,462
431.5

Page 3

Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative

$ 234,500,076
172,207,602
36.2
$ 1,614
1,300
24.2
$ 72,511,018
72,456,530
0.1
$ 307,011,094
244,664,139
25.5

December 2004 Tax Facts

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 fourth quarter of 2003, which shows an
increase of 0.9% in withholding payments over the fourth quarter of 2002. Growth in quarters for which
information is still being gathered is as follows:
1st Quarter 2004
2nd Quarter 2004

3rd Quarter 2004
4th Quarter 2004

5.2 %
2.1 %

6.7 %
(0.6 %)

Current choices for withholding are 0%, 10%, 18.2%, 21.3%, 23.3%, 29.4% or 34.4% 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.

Calendar Year 2004
Calendar Year 2003
% Change

Number
15,061
14,977
0.6

Amount
$5,308,081
$5,100,639
4.1

Average
$352.44
$340.56
3.5

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 checkoff or through a voluntary donation. The following is for tax year 2003:

Check Off
Voluntary Donation
Number of Returns

December 2004
$ 19,397
$986
2,561

Calendar Year Total
$ 4,249,835
$ 48,476
583,719

Contributions on the Individual Income Tax Return
Through December 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
9,607
10,502
5,058
2,958
608
7,597
1,127
709
86

Page 4

Amount
$ 169,691
194,122
79,604
39,024
42,746
137,147
27,579
17,080
1,730

Average
$17.66
18.48
15.74
13.19
70.31
18.05
24.47
24.09
20.12

December 2004 Tax Facts

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

Gross Collections
Refunds
Net Collections

Dec 2004
$148,651,887
($11,419,097)
$137,232,790

Dec 2003
$108,992,703
($23,791,682)
($85,201,021)

% Change
36.4
(52.0)
61.1

Fiscal Year Total Prior Fiscal Year Total
$385,256,769
$290,996,560
($42,516,056)
($78,433,189)
$342,740,713
$212,563,371

% Change
32.4
(45.8)
61.2

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.
Dec 2004
Dec 2003

$115,303,544
$64,880,054

% Change

Calendar Year Total
Calendar Year Total

$519,265,877
$400,497,240

% Change

29.7%

77.7%

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 December 2004 and for the calendar year.
Size of
Payment Î
Dec 2004
Dec 2003
CY 2003
CY 2002

Less
than
$50,000

$50,000 up
to
$100,000

498
428
2,853
2,649

$100,000
up to
$500,000

83
61
402
311

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

114
60
501
376

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

13
18
64
77

$10,000,000
and more

Total

1
0
2
0

724
582
3,898
3,489

15
15
76
76

%
chg
24.4
11.7

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 03/04

99 & Prior
9.2%

00
2.7%

01
3.0%

02
74.5%

03
10.4%

04
0.2%

Corporate Fiscal Year-End:
FY 04/05

00 & Prior
10.6%

01
3.4%

02
1.9%

03
77.0%

04
7.1%

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.
Dec 2004
Dec 2003
% Change

$13,543,929
$22,660,942
(40.2%)

Calendar Year Total
Calendar Year Total
% Change

Page 5

$154,605,181
$154,605,181
(1.6%)

December 2004 Tax Facts

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)

120S (S corp)

34,612
34.3

54,649
54.2

99T (exempt
org.)
355
0.4

120 A (short form)
10,889
10.8

Through December 2004, 108,944 documents were received for a fiscal year-end of 2003, distributed as
follows:

#
%

120 X
(amended)
310
0.3

120 (regular)

120S (S corp)

34,904
32.0

61,775
56.7

99T (exempt
org.)
391
0.4

120 A (short form)
11,564
10.6

The figures for the 2003 returns are most meaningful when compared to 2002 returns received during the
same period of time in the previous year. Through December 2003, the Department of Revenue received
100,794 documents with a fiscal year-end of 2002. Compared to 2003 documents, the Department has
seen an 8.1% 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 December 2004 are shown on
Table 2, at the end of this report.

Page 6

December 2004 Tax Facts

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% nonshared. In contrast, contracting is 20% distribution base and 80% non-shared. 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.
December 2004
Distribution Base
Non shared
Other Revenues
Education Tax
Use Tax
Total Collections

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

December 2003

$ 119,330,141
226,874,706
49,841,272
42,621,576
19,586,986
$ 458,254,680

$ 109,615,062
205,263,206
45,550,229
38,648,111
18,665,128
$ 417,741,736

Fiscal Year Total (04/05)

Fiscal Year Total (03/04)

$ 706,947,789
1,374,870,541
297,071,541
258,325,087
128,863,900
$ 2,766,098,858

$ 647,776,267
1,255,769,021
273,951,294
236,663,961
115,252,680
$ 2,529,413,223

% change
8.9%
10.5%
9.4%
10.3%
4.9%
9.7%
% change
9.1%
9.5%
8.4%
9.2%
11.8%
9.4%

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

December 2003

$ 287,618,657
48,340,640
29,832,535
42,621,576
49,841,272
$ 458,254,680
Fiscal Year Total (04/05)

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

$ 1,747,580,734
286,384,549
176,736,947
258,325,087
297,071,541
$ 2,766,098,858
Page 7

$ 261,734,569
44,405,062
27,403,766
38,648,111
45,550,229
$ 417,741,736
Fiscal Year Total (03/04)
$ 1,594,439,735
262,414,166
161,944,067
236,663,961
273,951,294
$ 2,529,413,223

% change
9.9%
8.9%
8.9%
10.3%
9.4%
9.7%
% change
9.6%
9.1%
9.1%
9.2%
8.4%
9.4%
December 2004 Tax Facts

Transaction Privilege and Severance Tax Collections By Class
December 2004

Tax Rate

% Chg

Fiscal Year Total

% Chg

5.6%

216,533

-43.5%

1,468,814

-33.4%

3.125%

684,730

-0.3%

4,662,808

6.7%

5.6%

23,518,814
11,849,105
24,040
511,159
1,497,001
30,254,398
4,019,976
63
12,165,528
63,982,500

9.9%
2.6%
-71.8%
17.2%
5.1%
1.9%
5.0%
NA
-5.9%
26.4%

190,481,600
73,214,119
331,424
3,342,486
8,894,754
180,820,083
18,819,644
30,555
78,998,354
384,154,118

5.7%
4.7%
-28.8%
3.4%
-1.4%
8.4%
3.1%
NA
1.9%
18.2%

0
187,760,238
1,018,915
731
8,323,955
23,853
19,604,357
6,930
310,366

NA
8.9%
191.3%
-35.7%
-1.6%
211.1%
5.0%
-32.0%
-13.3%

0
1,082,943,282
6,701,482
4,672
44,527,714
56,187
129,050,596
(3,043)
2,193,635

NA
8.1%
292.8%
-6.7%
8.1%
24.7%
12.0%
NA
7.9%

368,732

-12.7%

2,161,290

97,605

-30.7%

648,715

17.3%

----

124,718

13.2%

651,099

-19.0%

5,423

NA

26,205

NA

911 Wireline

$0.37/month per active service

1,181,374

0.9%

6,950,082

2.5%

911 Wireless
Total

$0.37/month per active service

1,088,610

21.3%

6,396,101

8.7%

$ 368,639,654

9.7%

$ 2,227,526,775

9.4%

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

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

Telecommunications Devices

0

----

Telecomm
School for the Deaf and Blind
Poison Control
Teratogen Funding

-18.9%

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.

Transaction Privilege and Severance Tax Taxable Sales By Class1
December 2004
Transporting

% Chg

Fiscal Year Total

% Chg

4,333,982

-43.4%

29,402,646

21,911,349

-0.3%

149,298,625

6.7%

Utilities

470,376,274

9.9%

3,811,661,665

5.7%

Communications

236,982,091

2.6%

1,465,169,064

4.8%

480,806

-71.8%

6,632,522

-28.8%

Publishing

10,224,600

17.2%

66,916,503

3.5%

Job Printing

29,940,019

5.1%

178,007,599

-1.3%

605,090,847

1.9%

3,618,732,297

8.4%

80,399,518

5.0%

376,664,314

3.2%

2,116

NA

893,358

NA

243,310,979

-5.9%

1,581,008,579

2.0%

1,286,399,105

27.0%

7,729,997,096

19.0%

0

NA

0

NA

3,755,383,281

8.9%

21,673,641,480

8.2%

40,756,600

191.3%

268,153,470

292.9%

Non-Metal Mining Oil/Gas

Private Car/Pipelines

Restaurants & Bars
Amusements
Commercial Lease
Rental of Personal Property
Contracting
Feed Wholesale
Retail
Mining Severance

-33.4%

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

December 2004 Tax Facts

Timber Severance
Hotel/Motel
Membership Camping
Use Tax
Rental Occupancy Tax
Total

348

-34.8%

2,297

151,344,641

-1.6%

810,207,557

8.2%

477,062

211.1%

1,125,281

35.0%

400,231,020

7.3%

2,592,577,493

12.6%

231,009

-32.0%

(99,649)

NA

44,359,992,197

10.0%

7,337,875,646

-2.3%

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 December 2004 is shown in the County Share column.

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

356,305
1,144,962
861,734
359,332
215,885
207,605
136,166
31,162,253
1,346,388
734,288
7,175,645
1,342,568
328,891
1,646,309
1,322,308
48,340,640

0.7%
2.4%
1.8%
0.7%
0.4%
0.4%
0.3%
64.5%
2.8%
1.5%
14.8%
2.8%
0.7%
3.4%
2.7%

2,163,223
6,215,261
6,549,569
2,212,723
1,289,935
1,223,513
817,111
183,833,818
8,141,720
4,602,511
42,346,257
7,761,121
1,844,282
10,014,599
7,368,906
286,384,549

7.5%
27.3%
-10.1%
4.6%
6.8%
43.5%
7.6%
9.3%
12.0%
7.9%
7.9%
10.9%
7.0%
11.1%
10.7%
9.1%

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
December 2004 is shown on Table 3, attached to this report.

Page 9

December 2004 Tax Facts

County Tax Collections
The following county-imposed tax collections were received by the Department of Revenue during
December 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

Jail Tax

Rental Car

Stadium

RV

Hospital

Capitol

Tourism

Surcharge

Tax

Surcharge

Tax/Health

Projects

Authority

SVCS Dist

Apache

73,455

Cochise

504,720

Coconino

749,173

Gila

198,353

96,912

Greenlee

67,697

Maricopa

68,533
24,965,838

68,533
9,290,668

Mohave

506,886

Navajo

442,494

Pima
Pinal
Santa Cruz
Yavapai
Yuma

187,279

192,402

Graham
La Paz

449,225

-259
652,860

217,383
974,836

1,630

1,501,384

20,177

945,376
229,063
1,121,865

561,885

902,508

902,185

901,022

Page 10

December 2004 Tax Facts

OTHER TAXES
Luxury Taxes
The following revenues were received from luxury taxes in December 2004. The table compares the receipts
to December 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

December 2004
$ 1,419,554
510,132
1,462,024
23,773,976
778,289
250
$ 27,944,225

December 2003
$ 2,091,715
1,221,241
1,822,156
21,232,642
712,562
300
$ 27,080,615

% Change
(32.1)
(58.2)
(19.8)
12.0
9.2
(16.7)
3.2

Spirituous
Vinous
Malt
Cigarette*
Other Tobacco
Tobacco Licenses
Total

Fiscal Year (04/05)
$ 10,756,331
4,463,652
11,132,242
137,827,490
4,185,769
1,875
$ 168,367,358

Fiscal Year (03/04)
$ 10,978,337
5,028,871
10,904,487
129,861,562
3,829,535
2,375
$ 160,605,168

% Change
(2.0)
(11.2)
2.1
6.1
9.3
(21.1)
4.8

*Through December 2004, $448,500 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

December 2004
$ 993,687
126,737
365,506
3,284,680
120,635
250
$ 4,891,495

Fiscal Year (04/05)
$ 7,529,431
1,112,000
2,783,060
18,503,221
653,485
1,875
$ 30,583,072

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

December 2004
$ 1,799,616
$ 8,296,103
$ 12,319,628
$ 3,183
$ 453,784
$ 180,415

Fiscal Year (04/05)
$ 12,907,774
$ 48,133,735
$ 71,756,431
$ 15,649
$ 3,557,387
$ 1,413,307

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 11

December 2004 Tax Facts

Estate Tax
December 2004
December 2003
% Change

$ 2,462,239 Fiscal Year to Date
$ 5,139,387 Fiscal Year To Date
(52.1)
% Change

$ 20,745,602
$ 20,638,067
0.52

December 2004
December 2003
% Change

$ 42,693 Fiscal Year to Date
$ 45,407 Fiscal Year to Date
(6.0)
% Change

$ 290,275
$ 298,880
(2.9)

Bingo

Unclaimed Property
December 2004
December 2003
% Change

$ 1,047,632
$ 272,086
285.0

Fiscal Year to Date
Fiscal Year to Date
% Change

$32,474,907
$ 30,872,913
5.2

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 12

December 2004 Tax Facts

TABLE 1
“New” Returns Filed in 2004 for Tax Year 2003
Through December 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
Dependent
s

Negative FAGI
$0-$5,000

2,928
53,562

1.2%
22.4%

-$21,555
$2,681

$2
$1

17.6%
3.9%

75.3%
85.2%

4.2%
9.9%

2.9%
0.9%

13.8%
3.9%

11.3%
14.6%

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

50,232
34,452

21.0%
14.4%

$7,364
$12,347

$25
$91

7.2%
14.0%

73.7%
57.5%

17.8%
26.8%

1.3%
1.7%

5.7%
8.4%

25.9%
38.3%

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

24,733
16,995

10.3%
7.1%

$17,362
$22,361

$169
$272

20.5%
25.3%

48.7%
43.2%

28.4%
28.4%

2.5%
3.1%

8.6%
8.0%

43.2%
46.3%

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

12,032
15,280

5.0%
6.4%

$27,383
$34,487

$390
$553

29.3%
36.5%

40.5%
37.4%

26.3%
21.9%

3.8%
4.2%

8.1%
8.6%

46.4%
45.2%

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

9,117
11,543

3.8%
4.8%

$44,634
$60,644

$776
$1,157

47.8%
62.5%

32.1%
24.6%

16.8%
10.5%

3.3%
2.5%

10.3%
12.9%

46.0%
46.2%

4,345
3,254

1.8%
1.4%

$85,473
$129,567

$1,849
$3,309

72.2%
73.5%

19.3%
18.2%

6.8%
6.5%

1.7%
1.8%

14.6%
16.1%

45.2%
43.2%

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

658
90

0.3%
0.0%

$284,655
$654,692

$9,475
$24,465

69.7%
54.3%

21.9%
30.9%

5.5%
8.5%

2.8%
6.4%

20.1%
23.4%

39.6%
34.0%

$1,000,000 and over

59

0.0% $1,958,095

$99,636

56.7%

36.7%

5.0%

1.7%

18.3%

25.0%

239,280

$20,074

$334

16.5%

49.4%

15.8%

1.7%

7.5%

32.9%

$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%

2.2%

7.6%

“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 13

December 2004 Tax Facts

34.7%

TABLE 2
Urban Revenue Sharing Returned to Cities/Towns
December 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

$30,901
$15,185
$27,185

4,033
3,548
1,972

$36,096
$46,662
$126,600
$13,416
$289,433
$11,524
$28,603

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

$405,278
$7,938
$52,171
$21,776

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

$57,358
$6,835
$14,834
$104,357
$3,394

7,486
892
1,936
13,620
443

$15,240
$70,736
$30,817

1,989
9,232
4,022

$19,891
$6,222

2,596
812

$24,059
$25,698

3,140
3,354

$274,938
$65,105
$22,427
$28,564
$1,355,720
$58,301
$155,042
$15,171
$840,507
$1,676,554
$144,898
$40,057
$29,193
$3,047,790
$104,695
$830,293
$10,121,948
$33,070
$1,553,141

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 14

Distribution
$236,360
$1,215,397
$38,111
$38,939
$23,063

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

$258,741
$25,545
$153,770
$321,332

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

$37,674
$27,446
$58,960
$34,173
$24,335
$72,943

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

$103,867
$244,681
$24,840
$42,065
$3,729,125

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

$243,761
$193,268
$59,657
$79,494
$116,778
$17,232
$13,501
$38,295
$24,932

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

$159,969
$6,750

20,878
881

$72,414
$62,576
$26,220
$70,330
$2,521
$260,036
$180,327
$78,092

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

$117,398
$55,673
$14,014
$595,228

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

$ 31,089,382

4,057,566

December 2004 Tax Facts

TABLE 3
Transaction Privilege and Severance Tax Returned to Cities/Towns
December 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

$29,638
$14,492
$26,073

4,033
1,972
3,548

$34,620
$44,754
$121,424
$12,868
$277,599
$11,053
$27,433

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

$388,705
$7,613
$50,038
$20,885

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

$55,013
$6,555
$14,227
$100,090
$3,256

7,486
892
1,936
13,620
443

$14,617
$67,844
$29,557

1,989
9,232
4,022

$19,077
$5,967

2,596
812

$23,075
$24,648

3,140
3,354

$263,696
$62,442
$21,510
$27,396
$1,300,282
$55,917
$148,702
$14,551
$806,137
$1,607,997
$138,972
$38,419
$27,999
$2,923,161
$100,413
$796,341
$9,708,043
$31,717

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 15

Distribution

Population

$1,489,630
$226,695
$1,165,697
$36,553
$37,346
$22,120

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

$248,160
$24,501
$147,482
$308,192

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

$36,134
$26,323
$56,549
$32,775
$23,340
$69,960

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

$99,620
$234,675
$23,825
$40,345
$3,576,634

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

$233,793
$185,365
$57,217
$76,243
$126,457
$16,527
$12,949
$36,729
$23,913

31,814
25,224
7,786
10,375
17,208
2,249
1,762
4,998
3,254

$153,427
$6,474

20,878
881

$69,453
$60,017
$25,147
$67,454
$2,418
$249,402
$172,953
$74,899

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

$112,598
$53,396
$13,441
$570,888

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

$29,832,535

4,059,533

December 2004 Tax Facts