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Arizona Proposes to Let Counties Raise Excise Taxes


 Arizona Lawmakers Consider Big Change to County Excise Taxes.

The Arizona Senate is considering a measure that would enable certain counties to levy general excise taxes at a rate of up to 20%, if they are approved by unanimous vote of the board of supervisors or by a majority of "qualified electors." This is a departure from current policy, whereby the tax rates are capped at 10%.

Senate Bill 1284 seeks to amend Arizona law relating to county excise taxes. If approved, it would allow the taxes to be "… set at greater than ten percent but not to exceed twenty percent for the period of five years and one renewal period of five years." The following conditions must be met:

  • The percentage must be "approved by a majority of the qualified electors voting at a countywide election … held within ten years after the effective date of this amendment to this section."
  • "The five-year renewal of the increased percentage must be approved by a majority of the qualified electors voting at a countywide election … held not less than four nor more than five years after the election for the initial approval of the increased percentage."

Both of the following conditions must be true at the time of the election:

  • The county has a population of no more than one hundred fifty thousand people.
  • The primary property tax rate for the county is less than eighty-five cents per one hundred dollars of assessed value.

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photo credit: Al_HikesAZ via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.