Arizona voters go to the polls today to decide Proposition 100, which will raise the state’s sales taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. by one percentage point for three years.
Arizona’s combined 7.92% sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. is the 9th highest now, and if the rate goes up a point, it will become the 3rd highest. That’d be behind only Tennessee, which has no wage tax, and California, not a state to emulate for fiscal policy.
And although is true that Arizona is a relatively low-tax state, they are middle-of-the-road on business tax climate.
Click on the image for larger size version of the “State Business Tax Climate Index” map. Click here for the map in printer-friendly or alternative formats (PDF, TIFF).
More on sales taxes here.
More on Arizona here.Share