AZ HCR2038

Establishes higher income tax brackets for taxpayers earning over $250,000 (single/married filing separately) or $500,000 (married filing jointly/heads of household), with rates of 3.46-4.46% on income exceeding these thresholds, effective for taxable years beginning after December 31, 2020.

Directs revenues from these new higher tax brackets to the classroom site fund established under section 15-977, with amounts adjusted annually for inflation using the Phoenix consumer price index.

Requires school districts and charter schools to allocate classroom site fund revenues for teacher base salary increases (60%), teacher compensation increases based on performance (40%), and maintenance and operation purposes, with 40% dedicated to classroom improvements.

Permits the Department of Education and Department of Revenue to use a portion of transferred funds to cover actual reasonable implementation costs, with those costs disclosed to the Joint Legislative Budget Committee.

Submits the measure to voters as a proposition at the next general election in accordance with Arizona's constitutional referendum provisions.