The proposed bill would amend current statutes regarding the reporting requirements for the Arizona Department of Revenue (ADOR) related to capital gains tax on nonresident real estate sales. Specifically, it would require ADOR to report annually, by June 30, on the estimated amount of capital gains tax paid by nonresidents for the previous tax year, based on IRS data. This replaces the previous requirement for a one-time report due by June 30, 2020, and adds the President of the Senate and the Speaker of the House of Representatives as recipients of this report. Additionally, the bill mandates ADOR to collaborate with stakeholders to develop recommendations for ensuring taxpayer compliance and identifying best practices for tax enforcement, which must be included in the annual report.

The bill also repeals the previous requirement for ADOR to notify legislative bodies when revenue from nonresident real estate sales reaches a certain threshold. It makes technical and conforming changes to the existing law, ensuring that the updated reporting and compliance measures are effectively integrated into the current framework. Overall, the bill aims to enhance the oversight and collection of capital gains tax from nonresident real estate transactions in Arizona.

Statutes affected:
Introduced Version: 43-312
Senate Engrossed Version: 43-312