AZ HB2688

Requires the state to distribute 50% of transaction privilege tax revenues collected from sources located on Indian reservations to the respective Indian tribes each month for telecommunications infrastructure and community development projects.

Establishes a cap on distributions to qualifying Indian tribes for postsecondary educational institutions at $1.75 million per fiscal year or one-tenth of transaction privilege tax revenues from reservation sources, whichever is less.

Requires qualifying Indian tribes receiving educational funds to enter into compacts with the state lasting at least 10 years, with funds used primarily for capital needs and facility maintenance at community colleges on tribal reservations.

Modifies references in the tax code to reflect new subsection designations resulting from the addition of the Indian tribe revenue sharing provisions.