State Shared Revenues – Final FY 2026 Budget Estimates | June 3, 2025
This report sets forth the final estimate of shared revenues for each city and town for FY 2026. We obtained the total dollar figures subject to distribution from the Arizona Department of Transportation (VLT and HURF) and the Arizona Department of Revenue (TPT and URS). Please recognize that most total distribution figures are estimates, so they are subject to change.
Population Figures for Shared Revenue Estimates
The city and town population figures used for the distribution of state shared revenues are the official U.S. Census Bureau population estimates for each municipality as of July 1 of the prior year. These estimates may vary from those provided by other sources, including the demographics published by the various State agencies. The allocated amounts in this final report were produced using the Census Bureau’s July 2024 population estimate figures.
| U.S. Census Bureau Population Figures | 2023 July 1 Estimate | 2024 July 1 Estimate |
|---|---|---|
| Designated Population for TPT / HURF / VLT: | 5,955,436 | 6,079,887 |
| Designated Population for URS (1,500 min.): | 5,961,877 | 6,086,215 |
Shared Revenue Estimates by Tax Type
The tables in this report list the anticipated distribution of revenue to each city and town during FY 2026 from the Vehicle License Tax (VLT), Highway User Revenue Fund (HURF), State Transaction Privilege Tax (TPT), and State Income Tax, formally designated as Urban Revenue Sharing (URS).
Vehicle License Tax (VLT) – Approximately 20% of the revenues collected by ADOT for the registration of motor vehicles are distributed to cities and towns. These monies are distributed semi-monthly based on collections since the last distribution and may be expended for any municipal public purpose. A city or town receives its share of VLT based on a formula that considers the “county of origin” where vehicles are registered, coupled with its population relative to the total incorporated population of its county. The ADOT estimate of the total VLT distribution to cities and towns for FY 2026 is $347,094,000, approximately 6.26% more than last year’s estimate of $326,637,000.
Highway User Revenue Fund (HURF) – HURF is primarily funded by the 18-cent tax per gallon on sales of gasoline, so it’s often referred to as the “gas tax.” However, several other sources also contribute to HURF, including portions of Use Fuel taxes, VLT revenues, motor carrier taxes, operator’s license fees, and the excise tax on recreational marijuana sales. HURF monies are distributed monthly based on collections since the previous distribution. HURF is restricted by statute – HURF distributions can only be used for street and highway expenditures. Cities and towns receive 27.5% of total collections. One-half of the money a city or town receives is allocated based on its population relative to the total population of all incorporated cities and towns. The remaining half is allocated based on the “county of origin” of gasoline sales and the city’s population relative to the total incorporated city/town population of the same county. The ADOT estimate of the total HURF distribution to cities and towns for FY 2026 is $525,455,000, approximately 5.40% more than last year’s estimated figure of $498,547,000.
Note: The total figures above and the individual city amounts shown on the attached table do not include the additional distribution of 3% of HURF collections (FY 2026 estimate: $57,322,000) that is allocated per statute to cities with populations over 300,000 (Phoenix: ~$34,719,362; Tucson: ~$11,715,470; and Mesa: ~$10,887,167).
State Transaction Privilege Tax (TPT) – Cities and towns share in a portion of the total collections of TPT imposed at the State level. Each tax classification has a designated sharing percentage that goes into the distribution base, and cities receive 25% of the base. Shared TPT is distributed semi-monthly based on collections since the previous distribution and may be expended for any municipal public purpose. A municipality receives its share of the state shared sales tax based solely on the relation of its population to the total population of all incorporated cities and towns. The FY 2026 ADOR estimate for state shared TPT is $918,000,000, approximately 2.00% higher than last year’s estimated figure of $900,000,000.
State Income Tax (URS) – Originally enacted by the voters in 1972 in exchange for cities and towns giving up the authority to assess local income taxes and local luxury taxes (liquor, tobacco, etc.), URS provided that 15% of the net income tax collected during a given fiscal year is distributed to cities and towns two years later. Beginning with FY 2024, cities and towns now receive 18% of the total state income tax collected. The increased percentage was the result of negotiations intended to minimize any adverse impact on cities and towns due to the State’s adoption of the 2.5% flat income tax rate, which reduced the individual income tax collection base. The amount distributed is based on the State’s total net individual and corporate income tax collections during the fiscal year that is two years prior to the distribution year. These funds are distributed monthly based on 1/12 of the total available and may be expended for any municipal public purpose. This money is allocated to an individual city or town based solely on its population (or the 1,500 statutory minimum population for the nine smallest towns) in relation to the total population of all incorporated cities and towns. The FY 2026 ADOR estimate for URS is $1,186,305,800, approximately (6.46%) less than last year’s estimate of $1,268,200,000. (Note: This is the only revenue type that is likely to remain unchanged because it is based on collections from two years ago, subject to changes due to various adjustments such as late refunds, court decisions, etc.)
SUMMARY OF SHARED REVENUE ESTIMATES BY TYPE
In summary, the total estimated shared revenues for distribution to cities and towns in the upcoming fiscal year from each source, based on the current state laws, are as follows:
VLT – Vehicle License Tax
HURF – Highway User Revenue Fund
TPT – State Transaction Privilege Tax
URS – State Income Tax
$347,094,000
$525,455,000
$918,000,000
$1,186,305,800
Please recognize that there is always the possibility of an unforeseen circumstance that could significantly alter these shared revenue forecasts, including changes that may be enacted by the legislature in its current session, fiscal uncertainty at the Federal level, and changes in the national economy. If there are noteworthy changes to these numbers, we will distribute revised estimates as quickly as possible. If you have any questions, please give us a call.
STATE SHARED REVENUE
| CITY/TOWN | 2024 Population | VLT | HURF | TPT (SALES TAX) | URS (INCOME TAX) |
|---|---|---|---|---|---|
| APACHE JUNCTION | 44,309 | $3,282,604 | $4,192,998 | $6,690,200 | $8,636,570 |
| AVONDALE | 96,609 | $5,126,287 | $7,580,721 | $14,586,959 | $18,830,721 |
| BENSON | 5,499 | $361,517 | $583,893 | $830,292 | $1,071,848 |
| BISBEE | 4,957 | $325,884 | $526,342 | $748,456 | $966,203 |
| BUCKEYE | 114,334 | $6,066,815 | $8,971,568 | $17,263,250 | $22,285,622 |
| BULLHEAD CITY | 43,266 | $3,859,701 | $5,009,647 | $6,532,718 | $8,433,272 |
| CAMP VERDE | 12,608 | $1,068,586 | $1,315,941 | $1,903,677 | $2,457,512 |
| CAREFREE | 3,657 | $194,049 | $286,958 | $552,169 | $712,811 |
| CASA GRANDE | 68,927 | $5,106,413 | $6,522,621 | $10,407,263 | $13,435,033 |
| CAVE CREEK | 5,177 | $274,703 | $406,229 | $781,673 | $1,009,084 |
| CHANDLER | 281,231 | $14,922,740 | $22,067,652 | $42,462,970 | $54,816,658 |
| CHINO VALLEY | 13,911 | $1,179,021 | $1,451,940 | $2,100,417 | $2,711,488 |
| CLARKDALE | 4,951 | $419,620 | $516,753 | $747,550 | $965,033 |
| CLIFTON | 3,815 | $386,682 | $459,783 | $576,026 | $743,608 |
| COLORADO CITY | 3,317 | $295,905 | $384,066 | $500,833 | $646,539 |
| COOLIDGE | 19,674 | $1,457,536 | $1,861,767 | $2,970,570 | $3,834,794 |
| COTTONWOOD | 12,939 | $1,096,639 | $1,350,489 | $1,953,655 | $2,522,029 |
| DEWEY-HUMBOLDT | 4,589 | $388,939 | $478,970 | $692,892 | $894,473 |
| DOUGLAS | 15,819 | $1,039,977 | $1,679,688 | $2,388,505 | $3,083,390 |
| DUNCAN | 671 | $68,011 | $80,869 | $101,314 | $292,375 |
| EAGAR | 4,438 | $450,155 | $1,298,562 | $670,092 | $865,041 |
| EL MIRAGE | 36,468 | $1,935,073 | $2,861,573 | $5,506,291 | $7,108,227 |
| ELOY | 19,199 | $1,422,346 | $1,816,818 | $2,898,850 | $3,742,208 |
| FLAGSTAFF | 77,539 | $4,924,115 | $10,823,209 | $11,707,586 | $15,113,657 |
| FLORENCE | 24,891 | $1,844,034 | $2,355,457 | $3,758,283 | $4,851,675 |
| FOUNTAIN HILLS | 23,696 | $1,257,362 | $1,859,379 | $3,577,851 | $4,618,749 |
| FREDONIA | 1,290 | $81,921 | $180,063 | $194,777 | $292,375 |
| GILA BEND | 1,847 | $98,006 | $144,931 | $278,878 | $360,011 |
| GILBERT | 288,790 | $15,323,837 | $22,660,792 | $43,604,301 | $56,290,034 |
| GLENDALE | 258,143 | $13,697,639 | $20,255,981 | $38,976,921 | $50,316,418 |
| GLOBE | 7,176 | $627,353 | $1,021,737 | $1,083,502 | $1,398,723 |
| GOODYEAR | 118,186 | $6,271,211 | $9,273,827 | $17,844,863 | $23,036,442 |
| GUADALUPE | 5,197 | $275,764 | $407,799 | $784,693 | $1,012,983 |
| HAYDEN | 513 | $44,848 | $73,042 | $77,458 | $292,375 |
| HOLBROOK | 4,837 | $455,612 | $886,683 | $730,337 | $942,813 |
| HUACHUCA CITY | 1,604 | $105,451 | $170,315 | $242,187 | $312,647 |
| JEROME | 457 | $38,733 | $47,699 | $69,002 | $292,375 |
| KEARNY | 1,898 | $140,612 | $179,609 | $286,578 | $369,952 |
| KINGMAN | 35,383 | $3,156,469 | $4,096,897 | $5,342,467 | $6,896,743 |
| LAKE HAVASU CITY | 59,037 | $5,266,611 | $6,835,727 | $8,913,976 | $11,507,306 |
| LITCHFIELD PARK | 6,863 | $364,166 | $538,526 | $1,036,242 | $1,337,714 |
| MAMMOTH | 1,181 | $87,494 | $111,759 | $178,319 | $292,375 |
| MARANA | 62,380 | $3,357,829 | $5,690,065 | $9,418,734 | $12,158,913 |
| MARICOPA | 76,654 | $5,678,863 | $7,253,833 | $11,573,961 | $14,941,156 |
| MESA | 517,151 | $27,441,177 | $40,579,838 | $78,084,448 | $100,801,439 |
| MIAMI | 1,531 | $133,846 | $217,988 | $231,165 | $298,418 |
| NOGALES | 19,965 | $2,329,826 | $2,904,185 | $3,014,508 | $3,891,515 |
| ORO VALLEY | 48,855 | $2,629,797 | $4,456,367 | $7,376,599 | $9,522,662 |
| PAGE | 7,230 | $459,141 | $1,009,193 | $1,091,655 | $1,409,249 |
| PARADISE VALLEY | 12,523 | $664,498 | $982,656 | $1,890,843 | $2,440,944 |
| PARKER | 3,456 | $640,471 | $2,665,951 | $521,820 | $673,633 |
| PATAGONIA | 796 | $92,890 | $115,789 | $120,188 | $292,375 |
| PAYSON | 16,762 | $1,465,397 | $2,386,616 | $2,530,888 | $3,267,196 |
| PEORIA | 199,924 | $10,608,410 | $15,687,649 | $30,186,454 | $38,968,554 |
| PHOENIX | 1,673,164 | $88,781,787 | $131,289,940 | $252,630,444 | $326,127,841 |
| PIMA | 3,148 | $237,109 | $323,331 | $475,315 | $613,598 |
| PINETOP-LAKESIDE | 4,148 | $390,713 | $760,381 | $626,305 | $808,515 |
| PRESCOTT | 48,224 | $4,087,204 | $5,033,308 | $7,281,325 | $9,399,670 |
| PRESCOTT VALLEY | 51,440 | $4,359,775 | $5,368,973 | $7,766,908 | $10,026,522 |
| QUARTZSITE | 2,425 | $449,404 | $1,870,640 | $366,150 | $472,673 |
| QUEEN CREEK | 83,781 | $4,445,605 | $6,574,133 | $12,650,064 | $16,330,328 |
| SAFFORD | 10,257 | $772,562 | $1,053,497 | $1,548,701 | $1,999,262 |
| SAHUARITA | 37,448 | $2,015,774 | $3,415,864 | $5,654,260 | $7,299,246 |
| SAINT JOHNS | 3,352 | $340,000 | $980,798 | $506,117 | $653,361 |
| SAN LUIS | 40,064 | $2,263,982 | $4,099,343 | $6,049,249 | $7,809,148 |
| SCOTTSDALE | 246,170 | $13,062,325 | $19,316,483 | $37,169,122 | $47,982,679 |
| SEDONA | 9,778 | $828,730 | $1,020,564 | $1,476,377 | $1,905,897 |
| SHOW LOW | 12,366 | $1,164,792 | $2,266,843 | $1,867,138 | $2,410,342 |
| SIERRA VISTA | 44,710 | $2,939,337 | $4,747,382 | $6,750,747 | $8,714,732 |
| SNOWFLAKE | 6,736 | $634,485 | $1,234,793 | $1,017,066 | $1,312,960 |
| SOMERTON | 14,902 | $842,099 | $1,524,770 | $2,250,048 | $2,904,651 |
| SOUTH TUCSON | 4,535 | $244,113 | $413,665 | $684,738 | $883,948 |
| SPRINGERVILLE | 1,723 | $174,767 | $504,151 | $260,155 | $335,842 |
| STAR VALLEY | 2,547 | $222,668 | $362,648 | $384,571 | $496,453 |
| SUPERIOR | 2,682 | $198,694 | $253,800 | $404,954 | $522,767 |
| SURPRISE | 167,564 | $8,891,317 | $13,148,423 | $25,300,429 | $32,661,046 |
| TAYLOR | 4,386 | $413,131 | $804,009 | $662,241 | $854,905 |
| TEMPE | 190,114 | $10,087,870 | $14,917,878 | $28,705,246 | $37,056,420 |
| THATCHER | 5,627 | $423,828 | $577,949 | $849,619 | $1,096,797 |
| TOLLESON | 9,353 | $496,291 | $733,912 | $1,412,206 | $1,823,057 |
| TOMBSTONE | 1,382 | $90,856 | $146,743 | $208,668 | $292,375 |
| TUCSON | 554,013 | $29,821,756 | $50,534,951 | $83,650,228 | $107,986,464 |
| TUSAYAN | 587 | $37,277 | $81,936 | $88,631 | $292,375 |
| WELLTON | 2,648 | $149,636 | $270,943 | $399,821 | $516,140 |
| WICKENBURG | 8,301 | $440,469 | $651,363 | $1,253,365 | $1,618,005 |
| WILLCOX | 3,217 | $211,493 | $341,586 | $485,734 | $627,047 |
| WILLIAMS | 3,482 | $221,124 | $486,032 | $525,746 | $678,700 |
| WINKELMAN | 295 | $25,790 | $42,003 | $44,542 | $292,375 |
| WINSLOW | 8,577 | $807,894 | $1,572,272 | $1,295,038 | $1,671,802 |
| YOUNGTOWN | 7,062 | $374,725 | $554,141 | $1,066,289 | $1,376,503 |
| YUMA | 103,559 | $5,852,029 | $10,596,142 | $15,636,337 | $20,185,393 |
| TOTALS | 6,079,887 | $347,094,000 | $525,455,000 | $918,000,000 | $1,186,305,800 |
State Shared Revenue is published annually by the League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007
Phone: (602) 258-5786; Fax: (602) 253-3874; Email: league@azleague.org; Internet: www.azleague.org
Click here for past State Shared Revenue reports