TRANSACTION PRIVILEGE TAX UPDATES LEGISLATION -

Senate Bill 1110, Chapter 443. Tribal Exemptions. This bill codified the following exemptions applicable to Indian tribes and tribal members at A.R.S. § 42-5121 et seq.: (1) business activities performed by an Indian tribe, a tribally owned business, a tribal entity or an affiliated Indian if the business activity takes place on an Indian reservation; (2) business activities performed by a nonaffiliated Indian or non-Indian vendor on an Indian reservation for an Indian tribe, a tribal entity or an affiliated Indian; (3) contracting activities performed on an Indian reservation by an Indian tribe, a tribally owned business, a tribal entity or an affiliated Indian; (4) contracting activities performed for an Indian tribe, a tribally owned business, a tribal entity or an affiliated Indian on an Indian reservation by a nonaffiliated Indian or non-Indian contractor; (5) retail sales of tangible personal property to an Indian tribe, a tribally owned business, a tribal entity or an affiliated Indian if the sale of tangible personal property takes place on an Indian reservation; and (6) the sale of a motor vehicle to an enrolled member of an Indian tribe who resides on the Indian reservation established for that Indian tribe. These exemptions were previously recognized by the Arizona Department of Revenue in Arizona Transaction Privilege Tax Ruling 95-11.