This bill proposes updates to the Arizona Revised Statutes regarding the transaction privilege tax, specifically amending section 42-5063 and adding section 42-5046. Under the new provisions, businesses claiming a specific deduction must report their gross sales to natural or artificial gas and electricity retail customers for informational purposes. The Department of Revenue is tasked with determining the foregone revenue from this deduction annually and estimating when it will reach a threshold of $2.3 billion, at which point they must notify key legislative leaders. Additionally, the department must inform businesses claiming the deduction about its expiration at least sixty days in advance, and those businesses must then notify their retail customers thirty days prior to the expiration.

The bill also clarifies that the amended section 42-5063 will apply to taxable periods starting after the first day of the month following the bill's effective date. Furthermore, it establishes that the provisions will remain effective until December 31, 2046, or until the threshold set in the new section 42-5046 is met, whichever comes first. The director of the Department of Revenue is required to notify the Arizona Legislative Council in writing regarding the expiration date of the deduction.

Statutes affected:
Introduced Version: 42-5046, 42-5063