State sales-tax collections were down 3.7 percent in March compared with the same month last year, according to the latest figures from the Arizona Department of Revenue.
Among major categories, collections from contracting fell nearly 36 percent from a year ago, while taxes from rentals of equipment, vehicles and other items fell more than 10 percent.
But there were some bright spots. Tax collections from restaurants and bars rose nearly 4 percent, while overall retail sales rose just under 1 percent.
The collections data lag actual sales because the taxes are typically remitted to the state the month after the sales occurred.