AZ SCR1001

Proposes a new Arizona constitutional amendment adding a 1% education transaction privilege tax (sales tax) and use tax on items currently taxed at 5% or higher rates, effective July 1, 2021.

Dedicates revenue from the new tax exclusively to education: 75% for primary and secondary classroom education, 20% for maintaining in-state university tuition rates and technology/research initiatives, and 5% for community college trade and workforce development programs.

Exempts the new education tax from the constitutional expenditure limitations and tax cap restrictions that applied as of December 31, 2017.

Modifies Article IX, Section 21 of the Arizona Constitution to clarify that revenues from state transaction privilege tax rate increases authorized after January 1, 2001 are excluded from school district expenditure limitation calculations.

Requires voter approval of the constitutional amendment at the next general election.