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. Under the new provisions, ADOR would be required 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. Additionally, the bill mandates ADOR to collaborate with stakeholders to develop recommendations aimed at ensuring taxpayer compliance and identifying best practices for tax enforcement and collection from nonresidents. These recommendations would be included in the annual report due by June 30, 2027.

The bill also updates the recipients of ADOR's reports to include the President of the Senate and the Speaker of the House of Representatives, while repealing the previous requirement for ADOR to notify legislative bodies when revenue from nonresident real estate sales reaches $3 million. The language regarding the timing of the information return filing has been clarified, and the bill includes technical and conforming changes to ensure consistency with the new reporting structure. Overall, these updates aim to enhance the efficiency and effectiveness of tax reporting and compliance for nonresident real estate transactions in Arizona.

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