Taxation

Arizona relies on a combination of taxes assessed on income, sales and property valuations. For nine consecutive years, Arizona has reduced taxes and passed legislation that is favorable to business.

Some aspects of the favorable tax code are:

• No corporate franchise tax

• No business inventory tax

• No income tax on dividends from out-of-state subsidiaries

• No worldwide unitary tax

• Aggressive accelerated depreciation schedules

• Virtually all services are exempt from sales tax

• 100% of NOL may be carried forward for five subsequent years

The tax burden in the Falcon Field Business District:

	Corporate Income Tax Rate:	6.98%
	Transaction Privilege and Use Tax:	8.05%
	Real and Personal Property Tax:	See chart below
	Personal Income Tax:	2.88% - 5.1%*
	Unemployment (% of payroll):	0.8%
	Workman's Comp (per $100 of payroll):	1.44%

Arizona is unique in that it uses two types of property values for taxing purposes:
1. Primary (limited) values and
2. Secondary (full cash) values

Secondary values fund such things as bond issues, budget overrides and special district while primary tax revenues help fund the maintenance and operation budget of state and local governments.

Primary Tax:

	State:	$0.00
	City:	$0.00
	County:	$0.00
	Community College:	$0.8815
	Mesa Schools:	$6.36

Secondary Tax:

	Central AZ Project:	$0.00
	EVIT:	$0.06
	Flood District:	$0.205
	Library:	$0.051
	Fire District:	$0.0068
	School Bonds:	$2.8129
	Special Health Care District:	$0.1184