TAX AND LICENSE / STATE TAX SYSTEM

State Income Tax

Arizona imposes a personal income tax that uses the federal adjusted gross income as the starting point for tax computation. Since Arizona uses the federal adjusted gross income, any income that is taxable for federal purposes will also be subject to Arizona tax unless specifically excluded. Additions include interest income from non-Arizona municipal bonds. Subtractions include interest from U.S. Government obligations, social security benefits, and benefits received under the Railroad Retirement Act. For answers to questions or more information on personal income tax and other taxes in Arizona, contact:

Arizona State Tax Information
1600 West Monroe
Phoenix 602-542-1991
www.revenue.state.az.us

Frequently Requested Numbers
Income Tax 602-255-3381
TDD Line 602-542-4021
Refund Check 602-255-3381
Forms Mail 602-542-4260
Forms Fax 602-542-3756
Taxpayer Advocate 602-542-3887

School Tax Credit

Arizona allows a tax credit for cash contributions or fees to a public school for support of extra-curricular activities or for character education programs. Fees paid for your own child can be applied toward this credit, although you do not have to be a parent or have children in school to benefit. The credit is equal to the amount contributed with a limit of $200 for single taxpayers or heads of household and $250 for married taxpayers.

Property Tax

The assessment ratio for owner-occupied residential property is 10 percent of full cash or “market” value. Tax jurisdictions set tax rates on the basis of the total assessed valuation within their boundaries and the amount of the levy to be raised. The combined tax rate applicable to each parcel of property is the sum of the state, county, municipal, school, and special district rates. Total tax rates may vary considerably from one area to another. For more information on property taxes in Arizona, contact your county tax officials:

La Paz County Assessor
1112 Joshua Avenue
Parker 928-669-6165
www.co.la-paz.az.us/Main_Pages/Dept_Assessor/assessor.htm

La Paz County Treasurer
1112 Joshua Avenue
Parker 928-669-6145
www.co.la-paz.az.us/Main_Pages/Dept_Treasurer/treasurer.htm

Mohave County Assessor
315 E. Oak Street
Kingman 928-753-0703
www.co.mohave.az.us

Mohave County Treasurer
313 E. Oak Street
Kingman 928-753-0737
www.co.mohave.az.us

Estate, Inheritance & Gift Taxes

No other state imposes a smaller net estate tax than Arizona. Arizona’s death estate taxes are credited against the federal death tax, thereby eliminating any affect to the estate. Residents pay no gift, inheritance, poll or intangible personal property tax. For more information, contact:

Estate Tax Division
1600 West Monroe
Phoenix 602-542-4643
www.revenue.state.az.us

Vehicle/Gasoline Taxes

Arizona imposes a motor vehicle license tax in lieu of a personal property tax on automobiles. The tax rate is $3.12 on each $100 of value for the first 12 months of the life of the vehicle ($3.22 for each succeeding 12-month period). The initial tax base is 60 percent of the manufacturer’s list price (excluding options) reduced by 16.25 percent per year. Vehicle registration and tax payments are annual with optional two-year rates. Special rates apply to alternative fuel vehicles. Arizona imposes a gasoline tax of 18 cents a gallon.

General Sales Tax

The retail sales tax in Arizona is 5.6 percent. All Arizona counties levy a tax, and each municipality levies an additional 1 to 3 percent tax on retail sales. The state of Arizona does not levy a state tax on food for home consumption or on drugs prescribed by a licensed physician or dentist. However, some cities in Arizona do levy a tax on food for home consumption.

Federal Income Tax

Internal Revenue Service
800-829-1040
www.irs.gov

IRS Frequently Asked Questions
www.irs.gov/faqs

Taxpayer Advocate Service
877-777-4778

Local IRS Offices

Bullhead City
3090 Highway 95
Bullhead City 928-758-8665
www.irs.gov

Lake Havasu City
2610 Sweetwater Avenue
Lake Havasu City 928-453-2670
www.irs.gov

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