SB 1110 Summary

• Creates new Article 3.1 in Arizona tax code establishing tax exemption for Indian tribes, tribally owned businesses, tribal entities, and affiliated Indians on business activities and sales occurring on Indian reservations.

• Exempts sales of motor vehicles to enrolled tribal members residing on their reservation from transaction privilege tax.

• Removes "coal" from the taxable list under the retail classification (making coal sales tax-exempt) and adds corresponding language allowing municipalities to continue existing taxes on motor vehicle sales to tribal members only if possession occurs off-reservation.

• Amends definitions of "Indian tribe," "Indian reservation," and "affiliated Indian" throughout Arizona tax statutes to ensure consistent application of exemptions.

• Requires nonaffiliated Indians and non-Indian vendors doing business on reservations to maintain documentation distinguishing taxable from nontaxable transactions, with unidentified proceeds presumed taxable.