Arizona = Low Tax State
Arizona continues to be a low tax state. According to data released by the US Census Bureau and the Bureau of Economic Analysis, Arizona continues to rank in the bottom ten for state and local taxes and fees as a percentage of personal income. For all taxes and fees combined paid in 2011, Arizona ranked 41st, with taxpayers paying $13.94 per $100 of personal income compared to a national average of $15.52.
Since 1991, Arizona’s legislature has passed tax cuts every year except for 2003. As a result, total taxes and fees paid per $100 of personal income has fallen by $2.04, a 17 percent reduction.
Alaska maintained its ranking for having the highest combined taxes and fees at $38.80 per $100 of personal income, with South Dakota ranking lowest at $12.00. Arizona’s taxes are below the national average for all types of taxes except for the general sales tax, where Arizonans paid $3.70 per $100 of personal income as compared to the national average of $2.38. Arizona voters have voted twice in the last 20 years to increase the sales tax – a 20-year 0.6% increase directed to K-12 education, passed in 2001, and the 3-year 1% increase that was in effect from June 2010 through May 2013.
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