Companies in Arizona face a levy on possessions used for revenue era, together with tools, furnishings, and stock. This evaluation, based mostly on an asset’s depreciated worth, varies by county and is run on the native degree. As an example, a printing firm would possibly pay based mostly on the worth of its presses and slicing tools. This technique differs from levies on actual property like land and buildings.
This income stream offers essential funding for important public companies delivered by county governments, similar to training, public security, and infrastructure upkeep. Traditionally, this type of taxation has been a cornerstone of native authorities finance in lots of states, permitting for localized useful resource allocation and supporting community-specific wants. The system goals to distribute the tax burden pretty amongst companies based mostly on their funding in productive belongings.