Arizona Tax

FULL List to Arizona Tax Forms

Individual Income Tax Forms

Form 140X Individual Amended Income Tax Return

Form 140NR Nonresident Personal Income Tax Return

Corporate Income Tax Forms

Form 120 Arizona Corporation Income Tax Return

Form 120S Arizona S Corporation Income Tax Return

Sales Tax Forms

Exemption Form

Form TPT 1 Transaction Privilege, Use, And Severance Tax Return

Property Tax Forms

Form Certification of Disability of Property Tax Exemption

Form Affidavit of Property Value

Primary Concerns:

The primary concerns that effect Arizona in present circumstances generally center on issues of financial solvency. Much of the problems have developed from inconsistent taxation policies, which include sharing too much responsibility with individual counties, especially with sales and property taxes.

Compounding issues was Arizona’s implementation in early 2010 of a strict Anti-Illegal Immigration policy that created nationwide controversy. Since tourist services, such as lodging and paid transportation are some of the highest taxed services in the state, this had an immediate effect on state revenue.

In defense of Arizona, a large part of the state’s budget problems came from an overabundance of labor that was not providing taxable income, which could be directly related to an over proliferation of illegal resident aliens, who draw money from the local economy yet do not pay the taxes that legal residents and workers are obligated to.

Income Tax:

All individual residing in Arizona or earning income from within Arizona are subject to Arizona income tax. Usually there are two sets of tables each for single people (or married people filing separately), married couples filing a joint return, and heads of a household.

The rates of taxation, which are indeterminate and set by the Arizona tax bureau, with a progressive rate as incomes increase. $50,000, with the final increase at $150,000. Less than $10,000 is multiplied by 2.59% with product minus zero, $10,000 to less than $25,000 is 2.88% with product minus $29, $25,000 to less than $50,000 is 3.36% with product minus $149, $50,000 to less than $150,000 is 4.24% with product minus $589, and $150,000 or more is 4.54% with product minus $1039.

Withholding taxes is practiced in Arizona, with all taxes withheld based on estimations made based upon the above criteria. Taxes are not withheld will likely have to make estimated tax payments.

Corporate Income Tax:

Any business that earns income or is based in Arizona is subject to Arizona income tax laws. Arizona’s corporate income tax is 6.86% or $50, whichever is greater (meaning that it is never less than $50).

Arizona makes a differentiation between C corporations, which are regular companies and subject to double taxation, and S corporations, which are subject to single, shareholder taxation.

In addition to income tax, many companies operating in Arizona are held to a number of other taxable activities, based on the services provided.

Property Tax:

Most residential property taxes are assessed and collected on a county to county basis by the county collector.

Not all properties are subject to Arizona property taxes; most residential housing is, in fact, exempt from property taxes.

Individual items subject to property taxes also are those with a commercial purpose, such as phone or telecommunications equipment, office and retail equipment, hotel furnishings, and commercial vehicles such as delivery vans. Usually, individuals and businesses are required to require filing property value assessments with the County Assessor before April 1 (not April 15).

Nearly all private property such as clothes, personal electronics, vehicles, jewelry, and other goods are exempt from property taxation.

Sales Tax:

Sales tax in Arizona is separated into two categories: Transaction Privilege and Use. Use tax is the same rate as Transaction Privilege, with the onus on the resident consumer for items purchased out of state which were not subjected to Transaction Privilege.

Tax rates in Arizona can vary. That additional amount can vary between 1 to 3%, with additional taxes places on services such as hotel lodging and paid transportation (such as taxis and limousines).

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