Most retailers know it but most of their customers probably don’t: There is no sales tax in Arizona.

Instead, the state has what it calls a transaction privilege tax. It’s a tax levied on the seller of goods based on the gross proceeds derived as income from sales. A traditional sales tax is something the purchaser pays on goods or services.

It’s a distinction without a difference, perhaps, since the consumer ultimately pays the tax either way.

Just how complicated is Arizona’s sales-tax system?

Consider the case of Circle K, which has to file 50 returns a month. The convenience-store chain does business throughout the state, which means it has to navigate an array of sales-tax bases and collection systems that change from one city to the next.

For years, Arizona businesses have complained about sales-tax headaches. It’s a maze of red tape for those doing business in multiple cities that boosts costs and soaks up time. Now, the business community hopes Gov. Jan Brewer can deliver some relief.

PHOENIX – Voters on Tuesday approved a ballot measure to limit increases in property valuations that determine how much property taxes people pay.

Unofficial returns showed Proposition 117 winning by a wide margin.

The measure, which will take effect in 2015, will place a 5 percent annual limit on how much the assessed value of property can rise. That will shield owners from the kinds of spikes seen during the real estate bubble of the last decade, supporters said.

I used to be a purist when it comes to property taxation. All property should be on the rolls at its market value. That's the only way to ensure an equitable distribution of the tax burden.

I scoffed at those who wanted to limit the increase in property values, equating that to increases in taxation. Values are just about distributing the burden, I would confidently assert. The size of the burden is determined by spending decisions and property-tax rates. Concentrate on controlling them.

Kevin McCarthy and Lynne Weaver agree on pretty much only one thing about Proposition 117: There is nothing in the constitutional language that forces down property taxes.

In fact, there’s nothing there that precludes tax from going up — again, legally.

But McCarthy, president of the business-oriented Arizona Tax Research Association, said he believes Proposition 117 really will keep property taxes down, if for no other reason than politics: Elected officials are afraid of angering voters.

Arizona has one of the most complicated property-tax systems in the nation. It’s the only state that taxes two tiers of valuations, something that confuses many homeowners.

Backers of Proposition 117 want to simplify the system and protect homeowners from big swings in taxes caused by ups and downs in home values.

Known as the Arizona Property Tax Assessed Valuation Amendment, the measure would limit property taxes to no more than a 5 percent annual increase on only assessed values.

PHOENIX — Kevin McCarthy and Lynne Weaver agree on pretty much only one thing about Proposition 117: There is nothing in the constitutional language that forces down property taxes.

In fact, there's nothing there that precludes tax hikes — again, legally.

But McCarthy, president of the business-oriented Arizona Tax Research Association, said it will do that, if for no other reason than politics: Elected officials are afraid of angering voters.

Weaver, who is trying to get an actual property tax cap enacted, disagrees.

What we're looking at
The Yes on 117 Campaign issued a media release stating that all the contributions that the Truth and Concerns on Prop 117 group has received have been from property-tax consulting firms.

The comment
"All of the (Truth and Concerns on Prop 117) contributions that were finally reported today are from the property-tax consultants."

The forum
A media release issued Oct. 25, 2012, by the Yes on 117 Campaign.

Analysis

Voters in a dozen states will weigh in on ballot measures Tuesday that could bring significant changes to tax and revenue policy in those states.

Overall, there are 32 tax and revenue ballot measures across the country, according to the National Conference of State Legislatures. Of those, 18 represent significant tax measures. Some propose tax increases while others limit taxes or address property assessments.

Various factors have caused the tax rate in the Gilbert Public Schools district to jump 40 percent this year, the highest increase in at least 30 years.

Despite the jump, district officials assert that the actual total tax rate of $7.20 per $100 of assessed valuation is $3 less than the highest rates in 1995 and 1997, when the rates were between $10.45 and $10.40 per $100 of assessed valuation, respectively. The rate increase affects property owners in those portions of Gilbert and Mesa that are within the district's boundaries.