By Russ Wiles | Arizona Republic
Arizona has attracted a steady stream of company relocations and expansions this year despite a tax climate ranked as only 27th-best in the nation.
The Tax Foundation, in a Sept. 26 report, placed Arizona slightly below average in its latest assessment of five key categories. Arizona enjoys favorable rankings in corporate and individual income taxes, in property taxes and in unemployment-insurance taxes.
But it was pulled down by sales taxes, with generally high rates and a complex system.
Arizona is among a group of states that impose high sales-tax rates and tax a range of goods and services including utilities, certain services, manufacturing and leases, the report said.
Sales taxes in Arizona vary by city and county but average about 8.3 percent. Combined rates in larger cities here include 8.6 percent in Phoenix, 8.7 percent in Tucson, 8.05 percent in Mesa and 7.95 percent in Scottsdale, according to an Arizona Republic study.