State Shared Revenues – Preliminary FY 2027 Budget Estimates | March 24, 2026
The preliminary estimate of State Shared Revenues for each city and town for FY 2027 is set forth in this report. 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 only estimates and subject to change.
Population Figures for Shared Revenue Estimates
As directed by statute, 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. The allocated amounts in this preliminary report were produced using the Census Bureau’s July 2024 population estimate figures. The July 2025 population estimates that will be used for shared revenue distribution during FY 2027 are expected to be released by the Census Bureau in late May. As soon as we receive those figures, we will issue the final version of this report.
| U.S. Census Bureau Population Figures | 2024 July 1 Estimate | 2025 July 1 Estimate |
|---|---|---|
| Designated Population for TPT / HURF / VLT: | 6,179,781 | |
| Designated Population for URS (1,500 min.): | 6,186,109 |
NOTE: The population figures above and used in this report include the newly incorporated Town of San Tan Valley, using the 99,894 estimated population provided by the U.S. Census Bureau for the related Census Designated Place. This population has been used by ADOR and ADOT for shared revenue distributions of TPT, HURF, and VLT since September 2025. San Tan Valley will begin receiving a share of URS in July 2026. A revised Certified population figure from the U.S. Census Bureau is expected before the final State Shared Revenue Report is distributed in late May. (Note: When that population number is available, cities and towns will see an adjustment of prior FY2026 allocations to re-balance all accounts.)
Shared Revenue Estimates by Tax Type
The tables found in this report list the anticipated distribution of revenue to each city and town during FY 2027 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. Each municipality receives its share of VLT based on a formula that considers the “county of origin” where vehicles are registered, coupled with its population in relation to the total population of all incorporated cities and towns in their county. The ADOT estimate of the total VLT distribution to cities and towns for FY 2027 is $357,460,425, approximately 2.99% more than last year’s estimate of $347,094,000.
Highway User Revenue Fund (HURF) – HURF is primarily funded by the 18 cents-per-gallon tax on gasoline, so it’s often referred to as the “gas tax”. However, there are several other sources that 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 HURF distribution a municipality receives is allocated based on its population relative to the total population of all incorporated cities and towns in the state. The remaining half is allocated based on a factor representing the “county of origin” of all gasoline sales, coupled with the city’s population relative to the total population of all incorporated cities and towns in the same county. The ADOT estimate of the total HURF distribution to cities and towns for FY 2027 is $517,301,000, approximately (-1.55%) less than last year’s estimated figure of $525,455,000.
Note: The total figures above and the individual city amounts shown on the attached table do not include the additional distribution of 3% of total HURF collections (estimated at $56,433,000 for FY 2027) allocated to cities with a population over 300,000 (Phoenix: ~$34,180,904; Tucson: ~$11,533,777; and Mesa: ~$10,718,320).
State Transaction Privilege Tax (TPT) – Counties, 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 is directed to the distribution base, and cities receive 25% of that base. Shared TPT is distributed semi-monthly based on collections since the previous distribution and may be expended for any municipal public purpose. Each municipality receives its share of State TPT based solely on the relation of its population to the total population of all incorporated cities and towns. The FY 2027 ADOR estimate for state shared TPT is $928,960,000, approximately 1.19% higher than last year’s estimated figure of $918,000,000.
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 and tobacco), URS originally 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% as a negotiated “hold harmless” provision in conjunction with implementation of the flat income tax. The amount distributed is based on the State’s total net individual and corporate income tax collections during the fiscal year 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 each municipality based solely on its population in relation to the total population of all incorporated cities and towns. The 9 smallest towns use the minimum population of 1,500, as provided by statute. The FY 2027 ADOR estimate for URS is $1,302,026,666, approximately 9.75% more than last year’s estimate of $1,186,300,000. (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 slight 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
$357,460,425
$517,301,000
$928,960,000
$1,302,026,666
Please recognize there is always the possibility of an unforeseen circumstance that could significantly alter these shared revenue forecasts, including changes enacted by the legislature in its current session. If there are any noteworthy changes to any of these numbers, we will deliver revised estimates to you 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 | $2,580,971 | $4,192,998 | $6,660,639 | $9,325,975 |
| AVONDALE | 96,609 | $5,219,419 | $7,382,419 | $14,522,504 | $20,333,863 |
| BENSON | 5,499 | $361,517 | $578,606 | 826,623 | $1,157,407 |
| BISBEE | 4,957 | $336,539 | $521,576 | $745,149 | $1,043,329 |
| BUCKEYE | 114,334 | $6,177,034 | $8,736,883 | $17,186,970 | $24,064,548 |
| BULLHEAD CITY | 43,266 | $4,068,249 | $4,915,647 | $6,503,852 | $9,106,449 |
| CAMP VERDE | 12,608 | $1,114,410 | $1,286,234 | $1,895,266 | $2,653,680 |
| CAREFREE | 3,657 | $197,574 | $279,451 | $549,729 | $769,710 |
| CASA GRANDE | 68,927 | $4,014,953 | $5,490,306 | $10,361,278 | $14,507,470 |
| CAVE CREEK | 5,177 | $279,694 | $395,603 | $778,219 | $1,089,634 |
| CHANDLER | 281,231 | $15,193,849 | $21,490,391 | $42,275,341 | $59,192,339 |
| CHINO VALLEY | 13,911 | $1,229,581 | $1,419,163 | $2,091,136 | $2,927,930 |
| CLARKDALE | 4,951 | $437,614 | $505,088 | $744,247 | $1,042,066 |
| CLIFTON | 3,815 | $386,075 | $469,821 | $573,480 | $802,965 |
| COLORADO CITY | 3,317 | $311,893 | $376,859 | $498,620 | $698,148 |
| COOLIDGE | 19,674 | $1,145,998 | $1,567,111 | $2,957,444 | $4,140,902 |
| COTTONWOOD | 12,939 | $1,143,666 | $1,320,002 | $1,945,023 | $2,723,347 |
| DEWEY-HUMBOLDT | 4,589 | $405,618 | $468,158 | $689,830 | $965,874 |
| DOUGLAS | 15,819 | $1,073,978 | $1,664,477 | $2,377,951 | $3,329,518 |
| DUNCAN | 671 | $67,905 | $82,634 | $100,866 | $315,714 |
| EAGAR | 4,438 | $475,277 | $1,259,672 | $667,131 | $934,092 |
| EL MIRAGE | 36,468 | $1,970,228 | $2,786,718 | $5,481,960 | $7,675,634 |
| ELOY | 19,199 | $1,118,329 | $1,529,276 | $2,886,041 | $4,040,926 |
| FLAGSTAFF | 77,539 | $5,135,813 | $10,657,564 | $11,655,855 | $16,320,088 |
| FLORENCE | 24,891 | $1,449,885 | $1,982,666 | $3,741,677 | $5,238,955 |
| FOUNTAIN HILLS | 23,696 | $1,280,205 | $1,810,740 | $3,562,041 | $4,987,436 |
| FREDONIA | 1,290 | $85,443 | $177,308 | $193,916 | $315,714 |
| GILA BEND | 1,847 | $99,786 | $141,139 | $277,646 | $388,749 |
| GILBERT | 288,790 | $15,602,233 | $22,068,015 | $43,411,629 | $60,783,326 |
| GLENDALE | 258,143 | $13,946,491 | $19,726,111 | $38,804,696 | $54,332,872 |
| GLOBE | 7,176 | $654,995 | $999,659 | $1,078,714 | $1,510,375 |
| GOODYEAR | 118,186 | $6,385,143 | $9,031,235 | $17,766,013 | $24,875,301 |
| GUADALUPE | 5,197 | $280,774 | $397,131 | $781,226 | $1,093,843 |
| HAYDEN | 513 | $46,825 | $71,464 | $77,115 | $315,714 |
| HOLBROOK | 4,837 | $474,700 | $868,988 | $727,110 | $1,018,072 |
| HUACHUCA CITY | 1,604 | $108,898 | $168,773 | $241,117 | $337,603 |
| JEROME | 457 | $40,394 | $46,622 | $68,697 | $315,714 |
| KEARNY | 1,898 | $110,557 | $151,183 | $285,312 | $399,483 |
| KINGMAN | 35,383 | $3,327,020 | $4,020,023 | $5,318,860 | $7,447,268 |
| LAKE HAVASU CITY | 59,037 | $5,551,177 | $6,707,462 | $8,874,588 | $12,425,864 |
| LITCHFIELD PARK | 6,863 | $370,782 | $524,439 | $1,031,663 | $1,444,496 |
| MAMMOTH | 1,181 | $68,792 | $94,071 | $177,531 | $315,714 |
| MARANA | 62,380 | $3,499,769 | $5,530,353 | $9,377,116 | $13,129,485 |
| MARICOPA | 76,654 | $4,465,046 | $6,105,791 | $11,522,819 | $16,133,817 |
| MESA | 517,151 | $27,939,715 | $39,518,322 | $77,739,420 | $108,847,806 |
| MIAMI | 1,531 | $139,743 | $213,277 | $230,144 | $322,239 |
| NOGALES | 19,965 | $2,499,124 | $3,021,989 | $3,001,188 | $4,202,151 |
| ORO VALLEY | 48,855 | $2,740,962 | $4,331,282 | $7,344,005 | $10,282,799 |
| PAGE | 7,230 | $478,881 | $993,747 | $1,086,832 | $1,521,741 |
| PARADISE VALLEY | 12,523 | $676,570 | $956,951 | $1,882,488 | $2,635,789 |
| PARKER | 3,456 | $678,512 | $2,619,165 | $519,514 | $727,405 |
| PATAGONIA | 796 | $99,640 | $120,486 | $119,657 | $315,714 |
| PAYSON | 16,762 | $1,529,966 | $2,335,045 | $2,519,705 | $3,527,997 |
| PEORIA | 199,924 | $10,801,139 | $15,277,281 | $30,053,071 | $42,079,178 |
| PHOENIX | 1,673,164 | $90,394,731 | $127,855,565 | $251,514,160 | $352,160,646 |
| PIMA | 3,148 | $249,514 | $317,005 | $473,215 | $662,578 |
| PINETOP-LAKESIDE | 4,148 | $407,082 | $745,206 | $623,538 | $873,054 |
| PRESCOTT | 48,224 | $4,262,475 | $4,919,684 | $7,249,151 | $10,149,988 |
| PRESCOTT VALLEY | 51,440 | $4,546,735 | $5,247,771 | $7,732,588 | $10,826,879 |
| QUARTZSITE | 2,425 | $476,097 | $1,837,811 | $364,532 | $510,404 |
| QUEEN CREEK | 83,781 | $4,526,371 | $6,402,162 | $12,594,168 | $17,633,879 |
| SAFFORD | 10,257 | $812,982 | $1,032,883 | $1,541,858 | $2,158,851 |
| SAHUARITA | 37,448 | $2,100,983 | $3,319,985 | $5,629,276 | $7,881,900 |
| SAINT JOHNS | 3,352 | $358,975 | $951,425 | $503,881 | $705,515 |
| SAN LUIS | 40,064 | $2,397,377 | $4,044,183 | $6,022,520 | $8,432,505 |
| SAN TAN VALLEY | 99,894 | $5,818,761 | $7,956,949 | $15,016,314 | $21,025,276 |
| SCOTTSDALE | 246,170 | $13,299,635 | $18,811,189 | $37,004,885 | $51,812,845 |
| SEDONA | 9,778 | $864,268 | $997,525 | $1,469,853 | $2,058,033 |
| SHOW LOW | 12,366 | $1,213,591 | $2,221,604 | $1,858,888 | $2,602,745 |
| SIERRA VISTA | 44,710 | $3,035,437 | $4,704,392 | $6,720,918 | $9,410,376 |
| SNOWFLAKE | 6,736 | $661,066 | $1,210,151 | $1,012,572 | $1,417,765 |
| SOMERTON | 14,902 | $891,716 | $1,504,254 | $2,240,106 | $3,136,511 |
| SOUTH TUCSON | 4,535 | $254,432 | $402,054 | $681,712 | $954,508 |
| SPRINGERVILLE | 1,723 | $184,521 | $489,053 | $259,006 | $362,650 |
| STAR VALLEY | 2,547 | $232,480 | $354,812 | $382,871 | $536,082 |
| SUPERIOR | 2,682 | $156,225 | $213,632 | $403,165 | $564,496 |
| SURPRISE | 167,564 | $9,052,850 | $12,804,477 | $25,188,636 | $35,268,178 |
| TAYLOR | 4,386 | $430,439 | $787,963 | $659,314 | $923,147 |
| TEMPE | 190,114 | $10,271,141 | $14,527,645 | $28,578,408 | $40,014,409 |
| THATCHER | 5,627 | $446,002 | $566,641 | $845,865 | $1,184,348 |
| TOLLESON | 9,353 | $505,307 | $714,714 | $1,405,966 | $1,968,581 |
| TOMBSTONE | 1,382 | $93,826 | $145,414 | $207,746 | $315,714 |
| TUCSON | 554,013 | $31,082,358 | $49,116,500 | $83,280,608 | $116,606,367 |
| TUSAYAN | 587 | $38,880 | $80,682 | $88,239 | $315,714 |
| WELLTON | 2,648 | $158,453 | $267,297 | $398,054 | $557,340 |
| WICKENBURG | 8,301 | $448,472 | $634,325 | $1,247,827 | $1,747,160 |
| WILLCOX | 3,217 | $218,408 | $338,493 | $483,587 | $677,101 |
| WILLIAMS | 3,482 | $230,631 | $478,593 | $523,423 | $732,877 |
| WINKELMAN | 295 | $26,926 | $41,095 | $44,345 | $315,714 |
| WINSLOW | 8,577 | $841,741 | $1,540,894 | $1,289,316 | $1,805,252 |
| YOUNGTOWN | 7,062 | $381,533 | $539,646 | $1,061,577 | $1,486,381 |
| YUMA | 103,559 | $6,196,833 | $10,453,563 | $15,567,246 | $21,796,670 |
| TOTALS | 6,179,781 | $357,460,425 | $517,301,000 | $928,960,000 | $1,302,026,666 |
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