HCR 2024 - Summary

• Proposes a constitutional amendment creating a 1% tax on transaction privilege and use tax revenues dedicated to education, effective July 1, 2021.

• Allocates revenue as follows: 70% for primary and secondary education, 20% for in-state university tuition and technology/research, 5% for community college workforce development, and 5% for oversight and accountability.

• Tax applies to all transaction privilege classifications with rates of 5% or more and to the use tax, subject to existing exemptions and deductions.

• Net revenues go directly to the state general fund and are exempt from distribution to counties, municipalities, or other government entities.

• Exempts the new tax from expenditure limitations in Article IX, Section 25 of the Arizona Constitution.