This bill proposes to amend the Arizona Revised Statutes by adding a new section, 42-5046, which introduces a credit against transaction privilege taxes for taxpayers who pay similar taxes to an Indian tribe. Specifically, the credit is applicable to taxes levied by an Indian tribe on the same tax base during the same taxable period, provided that the tribal tax is on gross proceeds of sales or gross income from business conducted in the state. The credit amount is capped at the lesser of the tribal taxes paid or the taxes due under the article, adjusted for the taxpayer's share of distributions to municipalities and counties.

Additionally, the bill outlines the process for claiming this credit, requiring taxpayers to do so in a manner prescribed by the department, which may include specific forms. It also stipulates that a claim for credit will not be allowed if the taxpayer has not paid the tax due before it becomes delinquent. The definition of "tribe" is expanded to include any federally recognized tribe, nation, band, or community of Indians that impose taxes on the relevant business activities within the state.

Statutes affected:
Introduced Version: 42-5046