Arizona’s recent #InvestInEd movement aims to increase statewide spending on K-12 public education via tax hikes for individuals making over $250,000 (+3.5% increase) and $500,000 (+4.45% increase) and joint filers over $500,000 (+3.5% increase) and $1,000,000 (+4.45% increase).
With the current tax rate standing at 4.54%, each mentioned segment would see a 77% and 98% overall increase, respectively. This also grants Arizona the fifth highest personal income tax rate in the United States for high income filers, versus its current placement at #38. If the act is passed, the legislation states that the upped tax rates and allocated funding towards education cannot be repealed irrespective of the relative economic climate.
With rising class sizes, and falling average teaching wages, the #InvestinEd movement promises to use the estimated $690 million increase for class size reduction, compensation increases, full day kindergarten, and improved dropout prevention programs.
The #InvestinEd movement has acquired over 270,000 signatures, a significantly higher contribution over the 150,642 signatures that were necessary to qualify the act for the upcoming November ballot.
Source: JLL Research
About the author
Rudolph “Nick” Perez is a market analyst in Phoenix, responsible for tracking and analyzing all local real estate market fundamentals. He works closely with brokerage and support professionals throughout the western region as well as colleagues throughout the global JLL organization to provide best-in-class research that differentiates JLL.