AZ HB2323

Establishes the Native American Veterans' Income Tax Settlement Fund administered by the Department of Revenue to refund state income taxes erroneously withheld from military pay of Native American veterans domiciled on tribal lands.

Allows eligible Native American veterans (or their estates if deceased) to file claims for settlement payments if they were enrolled tribal members maintaining domicile on reservation or trust lands during active duty service and had Arizona taxes withheld that cannot be recovered through standard refund procedures.

Requires claimants to provide DD Form 214 (military discharge papers), proof of tribal enrollment, evidence of domicile on tribal land, W-2 forms showing withholdings, and sworn statements regarding tax refund status.

Mandates the Department of Veterans' Services and Department of Revenue each process claims within 210 days, with approved claims paid from the fund on a first-come, first-served basis including interest computed from the date of withholding.

Appropriates $1,000,000 to the fund for fiscal year 2016-2017, allocates 5% of annual fund balance to administrative costs for both departments, and repeals the entire act on December 31, 2021; claims must be filed by December 31, 2019.