TPT; exemption; utilities; repeal

HB 2269 repeals a tax deduction for gas and electric utilities in Arizona once state revenue loss from the deduction reaches $2.3 billion. It requires utilities claiming this deduction to report annual sales data, and the state department must calculate when the $2.3 billion threshold is met. If the threshold is projected to be reached within a year, the department must notify state leaders and set an expiration date for the deduction. Utilities must then notify customers 60 days before the deduction expires, including the new tax rate that will apply. This bill directly affects Arizona gas and electric utilities that currently claim the deduction under Section 42-5063(C)(3)(c).