League State Shared Revenue

FY 2027
Preliminary Budget Estimates
March 24, 2026
STATE 
SHARED 
REVENUE 
Prepared by
League of Arizona Cities and Towns
1820 West Washington Street
Phoenix, Arizona 85007
(602) 258-5786
www.azleague.org

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. 
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 
U.S. Census Bureau 
Populations
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

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	
	
$357,460,425
HURF - Highway User Revenue Fund	
$517,301,000
TPT - State Transaction Privilege Tax	
$928,960,000
URS - State Income Tax	
	
$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.

CITY/TOWN
2024 
Population
VLT
HURF
TPT
(SALES TAX)
URS
(INCOME TAX)
APACHE JUNCTION
44,309 
$2,580,971 
$3,529,385 
$6,660,639 
$9,325,975 
AVONDALE
96,609 
$5,219,419 
$7,382,419 
$14,522,504 
$20,333,863 
BENSON
5,499 
$373,336 
$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

CITY/TOWN
2024
Population
VLT
HURF
TPT
(SALES TAX)
URS
(INCOME TAX)
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