DOR; stakeholder collaboration; nonresident transactions

Plain English Breakdown

The bill specifies a delayed repeal date but does not provide an effective start date for when this law takes effect, only the deadlines for action and expiration.

HB2794: Department of Revenue Collaboration on Nonresident Real Estate Transactions

This bill requires the Arizona Department of Revenue to work with stakeholders by December 31, 2027, and report recommendations by June 30, 2028, on how to improve tax compliance and collection from nonresidents selling property in the state.

What This Bill Does

• Requires the Department of Revenue to work with stakeholders before December 31, 2027.
• Asks for recommendations to ensure taxpayers follow rules about reporting real estate transactions under Arizona Revised Statutes section 43-312.
• Seeks best practices for enforcing and collecting taxes on capital gains earned by nonresidents in Arizona.
• Mandates a report of these findings be sent to state legislative leaders, the joint legislative budget committee, the governor's office, and the secretary of state by June 30, 2028.

Who It Names or Affects

• The Department of Revenue
• Nonresidents who earn income from capital gains allocable to Arizona through real estate transactions
• State legislative leaders including the Senate President and House Speaker
• The joint legislative budget committee, the governor's office of strategic planning and budgeting, and the secretary of state

Terms To Know

Stakeholders

Groups or people who work with the Department of Revenue to develop recommendations.

Capital gains

Income generated from selling property for more than it was bought, which is subject to tax if allocable to Arizona.

Limits and Unknowns

• The bill does not specify exactly who the stakeholders will be.
• It is unknown what specific recommendations the Department of Revenue will make in its report.
• This section of law ends automatically on December 31, 2028.

Official Summary Text

HB2794 - DOR; stakeholder collaboration; nonresident transactions

Current Bill Text

HB2794 - 572R - I Ver

REFERENCE TITLE:
DOR; stakeholder collaboration; nonresident transactions

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2794

Introduced by

Representative
Carbone

AN
ACT

requiring collaboration for nonresident
real estate transactions.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1.
Department of
revenue; information return for nonresident real estate transactions;
compliance; recommendations; report; delayed repeal

A. On
or before December 31, 2027, the department of revenue shall collaborate with
stakeholders to develop recommendations to:

1. Ensure
taxpayer compliance with section 43-312, Arizona Revised Statutes.

2. Identify
best practices to enforce and collect tax from nonresidents on income generated
from capital gains that is allocable to this state.

B. The
department shall submit a report of the recommendations on or before June 30,
2028 to the president of senate, the speaker of the house of representatives,
the joint legislative budget committee and the governor's office of strategic
planning and budgeting and provide a copy of the recommendations to the
secretary of state.

C. This
section is repealed from and after December 31, 2028.