The Arizona Tax Expenditure Report is a study prepared for the Governor and the Legislature by the Arizona Department of Revenue's Office of Economic Research and Analysis. The purpose of this report is to provide a better understanding of the costs associated with the existing set of tax exemptions, exclusions, deductions, and credits. There are sections on every tax imposed in Arizona. In each section, provisions dealing with that specific tax type are analyzed.

Arizona Revised Statute § 43-1089.01 provides a non-refundable individual tax credit for fees and cash contributions paid to public schools in Arizona for the support of extracurricular activities or character education programs. This credit is available only to individuals. The credit is equal to the amount of fees paid or amount contributed up to $200 for single or heads of household taxpayers and up to $400 for married taxpayers that file a joint return.

The mission statement of the Department of Revenue is to serve the people of Arizona by administering tax laws with integrity, fairness and efficiency. It is our vision that we set the standard for tax services. Tax laws that fall under the department’s purview are primarily in the areas of income, transaction privilege (sales), use, luxury, withholding, property, estate, fiduciary, bingo, and severance.

For a century, Arizona has pursued prosperity through outward expansion of its urban areas. In metropolitan Phoenix and elsewhere, “growth” has meant developing raw land with new houses, new shopping centers, and new industrial parks--and the metropolitan “frontier” has moved farther outward from downtown every year. This has not been uniformly true, of course. Some cities--Phoenix, Tempe, and Scottsdale especially--have been grappling with the question of revitalizing older urban neighborhoods for many years. But the “outside game” has been the predominant development pattern in the Valley of Sun for many decades. And the Phoenix region has played this game better than one might think, creating many high-quality master-planned communities, protecting lots of open space, using impact fees to build good infrastructure. In other words, Phoenix has used the “outside game” to create a region so attractive it continues to be one of the fastest-growing metropolises in America. But in order for cities to play a good inside game, Arizona must get serious about urban revitalization. And that will require big changes.

In the early 1990s, the criminal justice debate in America was dominated by phrases like “three strikes and you’re out,” “juveniles who commit adult crime should serve adult time,” and “lock ’em up and throw away the key.” In the latter half of the 1990s, however, the dialogue has shifted. Recognizing the enormous social and capital costs associated with locking people up and “throwing away the key,” many – including some of the strongest get-tough-on-crime advocates just a few years ago – have turned to a different concept: prevention.

Many of the influential voices in Greater Phoenix have come to believe in the power of prevention. In late 1996, a diverse coalition of local leadership from the business community, law enforcement, city and county government, academia, and the court system came together to create the Phoenix Violence Prevention Initiative.

It is an oversimplification to describe the new economy as a technology revolution, something that is mostly driven by and affects business. Clearly, new technologies and business practices are central to the concept of a new economy. However, that’s the easy part to understand. The bigger challenge is to grasp—and then develop strategies to take advantage of—how public policies in the new economy can most positively affect people and places. This report is meant to help Arizonans do just that.