AZ HB2269

Repeals the transaction privilege tax (TPT) exemption for retail sales of natural gas and electricity, with the exemption expiring on December 31, 2046, or when foregone state revenue reaches $2.3 billion, whichever occurs first.

Requires utility companies claiming the deduction to report gross proceeds from sales to gas and electricity retail customers for informational purposes to track foregone revenue.

Mandates the Department of Revenue to annually calculate foregone revenue and estimate when the $2.3 billion threshold will be met, notifying legislative leadership and the governor if the threshold will be reached within one year.

Requires utilities to notify retail customers in writing at least 30 days before the deduction expires, including the TPT rate that will apply after expiration.

Creates a phased approach where the exemption remains in effect temporarily under amended Section 42-5063, then is fully removed once either time or revenue threshold triggers are met.