AZ SCR1002

Proposes a new 1% education transaction privilege and use tax to be collected beginning July 1, 2021, as a separate rate increment on transaction privilege tax classifications with 5% or higher rates and on use tax.

Dedicates net tax revenues exclusively to the state general fund with the following allocation: 75% for primary and secondary classroom education, 20% for maintaining in-state tuition rates and technology/research initiatives, and 5% for community college trade and workforce development programs.

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

Modifies Article IX, Section 21 to clarify that revenues from additional state transaction privilege tax rates authorized for educational purposes are excluded from local revenue calculations used in expenditure limitation determinations.

Requires voter approval through a statewide general election and gubernatorial proclamation before implementation.