This bill proposes amendments to section 42-5075 of the Arizona Revised Statutes concerning transaction privilege tax. The current law specifies that the gross proceeds of sales or gross income from contracts for constructing residential apartment housing facilities that qualify for federal housing subsidies for low-income persons aged sixty-two and older are exempt from transaction privilege tax. The bill updates this by clarifying the ownership structure of such facilities, allowing for ownership by nonprofit corporations recognized as tax-exempt under sections 501(c)(3) or 501(c)(4) of the Internal Revenue Code, as well as certain partnerships and single-purpose entities.

Additionally, the bill introduces a retroactive application clause, stating that the amendments would apply to taxable periods beginning from and after December 31, 2023. This means that any changes made by the bill would affect tax calculations and obligations for those periods, potentially impacting entities involved in the construction of qualifying residential facilities.

Statutes affected:
Introduced Version: 42-5075