SB1059 Summary

• Implements a 0.6% increase to the state transaction privilege and use tax rate effective July 1, 2021 through June 30, 2041, with revenues directed to education funding.

• Allocates education tax revenues as follows: $86.3 million annually for basic state aid school days, $7.8 million for school safety, 82% to classroom site fund, 13.75% to university tuition subsidies and technology research, and 4.25% to community college workforce development.

• Allows income tax credits up to $25 per person (maximum $100 per household) for taxpayers earning $25,000 or less to offset the increased sales tax burden.

• Modifies classroom site fund allocation requiring 40% for performance-based teacher compensation, 20% for base salary increases, and 40% for maintenance and operations including new eligible uses like tutoring and school safety.

• Contains conditional enactment provisions: one version activates if constitutional amendment SCR1002 fails; another version activates if SCR1002 passes at the general election.