This bill proposes amendments to section 42-5075 of the Arizona Revised Statutes, specifically updating the provisions related to transaction privilege tax for residential apartment housing facilities. The current law specifies that the gross proceeds of sales or gross income from contracts for constructing such facilities are exempt if they qualify for a federal housing subsidy for low-income persons aged sixty-two and older, and are owned by certain nonprofit organizations. The bill expands the definition of eligible ownership structures to include wholly owned subsidiaries of nonprofit corporations, limited partnerships, limited liability companies with nonprofit general partners, and single-purpose entities owned by nonprofit corporations.

Additionally, the bill clarifies the definition of "federal housing subsidy" to include specific programs such as the HUD Section 202 supportive housing for the elderly program and the low-income housing tax credit program. Importantly, the act is designed to apply retroactively to taxable periods beginning after December 31, 2023, ensuring that the updated provisions are effective for past transactions as well.

Statutes affected:
Introduced Version: 42-5075