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.

Both the effect of climate change on our future water supply and the size of the population that will need to share in that supply are uncertainties that water planners must consider when making decisions regarding our future. We have options, but we have to be sure that we use water efficiently to meet our urban, agricultural, and environmental needs. This Policy Points offers a clear, succinct overview of the status of Arizona’s water supply and what the current drought really means for water availability.