ARIZONA
HOUSE OF REPRESENTATIVES
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HCR2024: TPT and use tax; education. |
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PRIME SPONSOR: Representative Udall, LD 25 BILL STATUS: Caucus & COW |
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Levies a separate state transaction
privilege (TPT) and use tax of 1% and specifies that monies derived from this
tax will be used for educational purposes and to provide oversight and
accountability.
History
Proposition 301 (2000) levied a state TPT and use tax by 0.6 of a percentage point through June 30, 2021. Monies collected through this tax are distributed in the following priorities:
1. Paying the fiscal year's debt service on outstanding state school improvement revenue bonds, not to exceed a principal amount of $800 million;
2. After the debt service payments:
o 12% of remaining monies are transferred to the Technology Research and Initiative Fund administered by the Arizona Board of Regents;
o 3% of remaining monies are transferred for workforce development programs in each community college district;
3. After these transfers:
o $200,000 to each community college district that is owned, operated, or chartered by a qualifying Indian tribe on its own reservation for workforce development and job training programs, plus a pro-rated amount based on each district's full-time equivalent student count.
o $86.2 million to the Arizona Department of Education (ADE) for increased cost of Basic State Aid in FY 2006 and each fiscal year thereafter;
o $7.8 million to ADE for school safety and $200,000 to ADE for the Character Education Matching Grant Program;
o $7.0 million for the annual achievement profile of for each public school and local education agency based on academic and educational performance indicators;
o $1.5 million to the Failing Schools Tutoring Fund, which ADE administers and uses fund monies to purchase materials designed to assist students in meeting the State's academic standards and achieving a passing score on assessments adopted by the State Board of Education;
o $25 million to the state General Fund for the cost of income tax credits for a tax with a federal adjusted gross income that is:
§ $25,000 or less for a married couple or a single person who is a head of household.
§ $12,500 or less for a single person or a married person filing separately.
4. Transfers any remaining monies to the Classroom Site Fund for teacher compensation based on performance, teacher base compensation and employee related expenses, and maintenance and operation purposes (A.R.S. § 42-5029(E)).
Laws 2018, Chapter 74, §11 extended this tax to June 30, 2041. This tax generated approximately $709 million which the State Treasurer distributed in fiscal year 2018 (FY 2018 Proposition 301 revenue distribution report).
The next general election is November 3, 2020.
Provisions
1. Levies a separate 1% state TPT and use tax from and after June 30, 2021.
2. Credits and accounts the net revenues derived from this tax to the state General Fund and appropriates these monies as follows:
a. 70% for primary and secondary classroom purposes;
b. 20% for maintain an in-state tuition rate that is consistent with Article XI, Section 6, Constitution of Arizona and for the Technology and Research Initiatives;
c. 5% for community college trade and workforce development programs;
d. 5% for oversight and accountability.
3. Allows for the same exemptions, deductions, and exclusions under the TPT and use tax statute.
4. Requires the Secretary of State to submit this proposition to the voters at the next general election.
5. Makes technical changes.
Amendments
Committee on Education
1. Increases to 75% the amount of net revenues derived from the TPT and use tax that will be credited to, and separately accounted in, the state General Fund for primary and secondary education.
2. Eliminates the 5% of net revenues derived from the TPT and use tax that would have been credited to, and separately accounted in, the state General Fund for oversight and accountability.
3.
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6. Fifty-fourth Legislature HCR 2024
7. First Regular Session Version 1: Caucus & COW
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