Staff Analysis of the Legislation
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The current 0.6% Transaction Privilege Tax, passed in 2000, is set to expire on June 30, 2021. The revenue from the tax is distributed among the K-12 Classroom Site Fund, the School Facilities Board, funding for 5 additional school days per year, state universities and community colleges, and an income tax credit. This bill extends the Proposition 301 tax rate, which expires June 30, 2021. The bill: Establishes a 0.6% Transaction Privilege Tax (TPT) beginning June 30, 2021 through June 30, 2041. States this tax will not be considered local revenues for the purposes of expenditure limits for school districts. Distributes revenue in largely the same manner as Proposition 301 expenditures, except that $64,100,000 will be appropriated each fiscal year in monthly increments to the Classroom Site Fund rather than the School Improvement Revenue Bond Debt Service Fund.
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