AZ HB2360

Establishes a 1% transaction privilege tax on services including legal, medical, accounting, real estate, beauty, automotive repair, and 50+ other service categories.

Creates the Arizona Higher Education Financial Aid Program with a $300 annual surcharge on out-of-state student tuition, with revenues deposited in a new fund to cover tuition and fees for qualifying Arizona resident students at universities and community colleges.

Distributes revenues from the new services tax as follows: 25% to classroom site fund for teacher compensation, 25% to university financial aid trust fund, 25% to public safety personnel retirement fund, and 25% to the higher education financial aid program fund.

Requires the Arizona Board of Regents to establish application procedures for the financial aid program and beginning in 2025 distribute monies to qualifying students on a first-come, first-served basis if insufficient funds exist to cover all eligible students.

Appropriates $500,000 from the general fund in fiscal year 2024-2025 to the higher education financial aid program distribution fund and requires a two-thirds vote in each legislative house for enactment.