Bill > SB1800

This bill establishes a dedicated fund for K-12 school infrastructure by creating an additional income tax rate for high earners and repealing an existing tax provision. Starting in 2027, individuals with a federal adjusted gross income exceeding $1,000,000 will face an additional tax rate of 2.6% on income above that threshold, bringing their total income tax rate to 5.1%, which is described as the rate in effect in 1998. However, taxpayers who have paid a significant amount in transaction privilege and use tax (a sales tax) during the year may be exempt from this additional income tax. The bill also mandates that the percentage of transaction privilege tax paid by middle-income earners will be used to adjust the exemption threshold every five years after 2031. All revenue collected from this new tax will be deposited into a newly established K-12 infrastructure fund, which will be used to repair and improve public school buildings and facilities, supplementing rather than replacing existing funds. The bill, titled the "Billionaires Should Pay for the Infrastructure They Use Act," requires a two-thirds legislative vote for enactment.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85470