SB 1320 - Education Funding Tax Reform

• Establish a 2 percent education sales and use tax effective January 1, 2017, to replace the required local effort education property tax beginning in the 2017-2018 fiscal year.

• The 2 percent education sales and use tax revenue shall be used exclusively for purposes specified in section 1011.62 (public education funding).

• Exempt retail sales of used tangible personal property priced at $250 or less per item from sales and use tax effective January 1, 2017.

• Allow a buildup period for the education sales and use tax revenue to accumulate before completely replacing the approximately $8 billion in annual required local effort education property tax on a dollar-for-dollar basis.