A.R.S. § 38-811: Taxation of benefits; exemption of contributions and securities

The member and employer contributions and the securities in the fund are exempt from state, county and municipal taxes. Member and employer contributions that are made to and subsequently withdrawn from the fund after December 31, 1974 by a member from the accounts of the plan and are not received as benefits from the plan and benefits, annuities and pensions received by a member from the plan after December 31, 1988 are subject to state taxes pursuant to title 43.