AZ SB1269

Adds a deduction from the utilities classification tax base for gross proceeds of sales or gross income from sales to an Indian tribe or tribal members on the tribe's reservation if federal law prohibits taxation of those receipts.

Requires taxpayers claiming the utilities tax deduction to maintain documentary evidence in their records demonstrating the receipts qualify for the deduction.

Requires that any meter measuring utility deliveries under the tribal exemption be physically located on the tribe's reservation.

Adds a similar deduction from the telecommunications classification tax base for gross proceeds from sales to Indian tribes or tribal members on the tribe's reservation if federal law prohibits taxation.

Requires telecommunications services claiming the exemption to originate or terminate through an instrument located on the tribe's reservation and be billed to the tribe or tribal member.