This bill proposes amendments to section 42-6004 of the Arizona Revised Statutes, specifically addressing local excise taxes related to the sale of residential property. It establishes that cities, towns, or special taxing districts cannot levy transaction privilege, sales, use, or similar taxes on bona fide nonbusiness sales of residential properties, provided certain criteria are met. These criteria include the property being used as a primary or vacation residence by the seller or their family, restrictions on the number of properties sold within a specified timeframe, and limitations on the property's rental history.

Additionally, the bill clarifies definitions related to the sale of residential properties, such as "qualified trust" and "seller," while also making minor adjustments to existing definitions. It mandates that construction contracting for improvements to a primary residence is presumed to be for nonbusiness purposes, and it requires construction contractors to report and pay taxes on these improvements. The act is retroactive to bona fide nonbusiness sales of residential property occurring after December 31, 2022.

Statutes affected:
Introduced Version: 42-6004