Ongoing Revenues by Type Per $1,000 of Personal Income, Arizona State Government General Fund
Relative to the size of the Arizona economy and to the ability of Arizonans to pay taxes and fees, general fund revenues from the property tax and from miscellaneous taxes have been nearly eliminated since the early 1970s, with the fiscal year 2014 figure in each category near the lowest on record. Despite few adjustments to the sales tax, its revenues have fallen relative to the size of the Arizona economy since the mid-1980s, as consumer spending has shifted from taxable goods to untaxed Internet purchases and untaxed services. The cyclical rebound from the last recession has been modest. Due to numerous reductions in tax rates, revenues from the income tax have fallen since the early 1990s relative to the size of the economy, though annual collections are highly cyclical. While income tax collections will continue to rebound from the recent recessionary trough, they are unlikely to reach the peaks of the last two economic cycles, due to further statutory reductions to the tax rate.