What does the Arizona Constitution specify about personal income tax?

The Arizona Constitution arranges its tax structure, particularly concerning personal income tax, in a specific way. The correct understanding is that it mandates no state taxes on personal income. This stipulation means that Arizona does not impose a state income tax on individuals, distinguishing its tax policy from many other states that do have such taxes in place.

In terms of overall tax policy, this exemption can influence economic growth and the decision-making process of individuals and businesses considering relocating to or investing in Arizona. The absence of state income tax is part of the state's appeal, as it allows individuals to retain more of their earnings compared to states with higher personal income tax rates.

The other options do not accurately reflect the principles established in the Arizona Constitution regarding personal income tax. For instance, the state does not allow unlimited taxation or mandate uniformity across income types, nor does it specifically differentiate tax rates between corporate and personal income, as they are clearly structured under the principle of no taxation for personal income.