Bill > HB2984

This bill establishes a new tax credit for businesses in Arizona that pay tribal taxes on the same business income or sales that are also subject to Arizona's transaction privilege tax, which is a form of sales tax. This credit is intended to prevent double taxation. The bill specifies that the tribal tax must be levied on gross proceeds of sales or gross income from business conducted within Arizona, and the credit amount cannot exceed the state tax liability after accounting for the taxpayer's share of state funds distributed to local governments. Businesses must claim this credit on their tax returns, and failure to pay the state tax on time will disqualify them. Importantly, if a business pays taxes to a "qualifying Indian tribe" – defined as a federally recognized tribe that operates an educational institution on its reservation in Arizona – the state will distribute one-twelfth of the taxpayer's credit to that tribe each month. The tribe must then use these funds exclusively for the support of its community colleges or postsecondary educational institutions located on its reservation, with annual limits on the amounts distributed to any single institution.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85330