The Multimodal Planning Division (MPD) of the Arizona Department of Transportation has been tasked with identifying corridors throughout the state where improvements to the transportation infrastructure supports the greatest potential commercial and economic benefits. These "Key Commerce Corridors" represent a strategic statewide approach to leverage infrastructure improvements to enhance Arizona's competitive economic position. This document presents the basis for the identification and evaluation of the Key Commerce Corridors.

The transaction privilege tax (TPT), often referred to as the sales tax, is a major source of revenue for state and local governments in Arizona. The TPT is applied to numerous categories, such as contracting and utilities. The analysis in this paper is limited to the retail category, which accounts for half of the TPT collected by state government, and the restaurant and bar category, which contributes one-tenth of the TPT revenue.