This bill proposes to amend the Arizona Revised Statutes by adding a new section, 42-5046, which introduces a tax credit against the transaction privilege tax for taxpayers who pay taxes to qualifying Indian tribes on the same tax base. The credit is limited to the amount of tribal taxes paid during the same taxable period and cannot exceed the taxpayer's tax liability under the article, adjusted for their share of distributions to municipalities and counties. Additionally, taxpayers must claim the credit in a manner prescribed by the department and must have paid their taxes before they become delinquent to qualify.

Furthermore, the bill outlines that if a taxpayer pays taxes to a qualifying Indian tribe, the department will distribute a portion of the credit to that tribe, which must then allocate the funds to support community colleges or postsecondary institutions operated by the tribe on its reservation. The bill sets annual limits on the amounts that can be transmitted to these educational institutions, defining a "qualifying Indian tribe" and clarifying the term "tribe" to include federally recognized tribes that levy taxes on business conducted in the state.

Statutes affected:
Introduced Version: 42-5046