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Proposing an Amendment to the Constitution of Arizona; Amending Article IX, Constitution of Arizona, by Adding Section 12.1; Relating to Temporary Transaction Privilege and Use Taxes.

Arizona Ballot Measure - Proposition 100

Election: May 18, 2010 (Special)

Outcome: Passed

Categories:

Higher Education
K-12 Education
Health and Health Care
Constitution
Taxes

Arguments For

Arguments Against

Summary

    ANALYSIS BY LEGISLATIVE COUNCIL
    Beginning June 1, 2010, Proposition 100 would amend the Arizona Constitution to temporarily increase the state transaction privilege and use taxes ("state sales tax") by one cent per one dollar for three years. For most purchases, the state sales tax would increase from the current 5.6 cents per one dollar to 6.6 cents per one dollar. The monies collected from the temporary tax would be separately accounted for in the state general fund and would be allocated as follows:
    1. Two-thirds would be appropriated for public primary and secondary education.
    2. One-third would be appropriated for health and human services and public safety purposes.

    Under Proposition 100, the temporary tax would be administered and enforced in the same manner as the existing state sales tax and would be subject to the same exemptions, deductions and exclusions as the existing state sales tax, except that the current distribution to cities and counties of a portion of the existing state sales tax would not include any temporary tax revenue.

    The temporary tax is repealed on May 31, 2013.

    FISCAL IMPACT STATEMENT
    State law requires the Joint Legislative Budget Committee (JLBC) Staff to prepare a summary of the fiscal impact of Proposition 100. Beginning June 1, 2010, Proposition 100 would amend the Arizona Constitution to temporarily increase the state transaction privilege and use taxes ("state sales tax") by one cent per one dollar for three years.

    Proposition 100 is projected to increase state sales tax revenues by $918 million in the first year. The proposition is projected to increase state sales tax revenues by $968 million in the second year and $1.06 billion in the third year.

    Measure Text

    Proposition 100 - Proposed amendment to the Arizona Constitution by the legislature relating to temporary transaction privilege and use taxes

    A "YES" vote shall have the effect of temporarily adding one cent per dollar to the transaction privilege (sales) and use tax for three years for the purpose of funding primary and secondary education, health and human services and public safety.

    A "NO" vote shall have the effect of keeping the transaction privilege (sales) and use taxes at their current rates.

    DESCRIPTIVE TITLE
    Temporarily Increases the State Transaction Privilege (Sales) and Use Tax by One Cent Per Dollar from June 1, 2010 through May 31, 2013 for the Purpose of Funding Primary and Secondary Education, Health and Human Services and Public Safety.

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