AZ SB1390

Excludes "gas transportation services" from the manufacturing/smelting exemption in the utilities tax classification, where gas transportation means transporting natural gas to a customer or distribution facility if purchased from a supplier other than the utility.

Applies the same gas transportation services exclusion to the use tax exemption for businesses using at least 51% of electricity or natural gas in manufacturing or smelting operations.

Applies the same gas transportation services exclusion to municipal transaction privilege tax requirements for businesses using at least 51% of electricity or natural gas in manufacturing or smelting operations within a city or town.

Clarifies that "gas transportation services" does not apply to gas purchased directly from the utility providing the service, only to gas sourced from third-party suppliers.