sales tax rate falls
Arizona’s sales tax rate falls to 5.6%. For the past three years, Arizona’s sales tax rate was 6.6%. Arizona voters approved a temporary higher sales tax rate three years ago to help deal with budget shortfalls, especially for the schools.
Last November, voters were asked whether they would extend this tax increase permanently. Despite lobbying from education advocates, Arizona voters rejected the extension so the tax increase expired on June 1st as was originally scheduled.
While Arizona Gov. Jan Brewer pushed hard for the original tax increase to go through, she did not support the new bill to extend the tax increase indefinitely. She believed that the short-term increase was necessary to handle an immediate budget crisis, but extending the sales tax rate any longer would hurt Arizona’s ability to attract new businesses.
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