The Arizona Senate Finance Committee has approved a bill requiring the state’s Department of Revenue to report capital gains taxes paid by nonresidents on real estate transactions, advancing it to the full Senate for consideration. The committee passed S.B. 1049, sponsored by Sen. Vince Leach, R-SaddleBrooke, by a 4-3 vote on Monday.
Purpose of the Bill
Sen. Leach described the legislation as an enforcement measure aimed at helping the state collect taxes owed by nonresidents on real estate transactions. If enacted, the Department of Revenue would submit annual reports to legislative leaders by June 30, detailing the amount of capital gains taxes paid by nonresidents in the prior tax year.
“This is about accountability,” Leach said, emphasizing the importance of identifying and enforcing unpaid taxes.
Concerns and Next Steps
Some committee members raised questions about the bill’s logistics, including who would receive the reports and whether the Department of Revenue would have sufficient access to data to compile them. Lawmakers suggested further refinements to address these concerns.
Implementation Timeline
If signed into law, the bill would take effect 91 days after the conclusion of the current legislative session. The measure aims to provide greater transparency in the collection of capital gains taxes while addressing potential enforcement gaps.
