Own-Source Revenues by Type Per $1,000 of Personal Income as a Percentage of the National Average, Arizona State and Local Governments
The revenue structure used by state and local governments in Arizona is considerably different from the national average. Since fiscal year (FY) 2000, revenues per $1,000 of personal income have been above the U.S. average only from the general sales tax (other than a spike in “other” revenues in FYs 2008 and 2009). Apart from the declines in the ratio to the national average in FYs 2008 and 2009 that reflect the much more severe recession in Arizona, state and local governments in Arizona have become increasingly reliant on the sales tax. In contrast, the reliance on the other major revenue source, the property tax, has decreased. Arizona’s property tax collections relative to the size of the economy fell from roughly 10 percent above the national average in the early 1990s to approximately 10 percent below since FY 2004. Collections from most of the other revenue sources also have fallen further below the national average, though the turn in the economic cycle pushed most of the ratios higher in FYs 2011 and 2012.