DOR; stakeholder collaboration; nonresident transactions

Plain English Breakdown

The official source material does not provide details on how many stakeholders will be involved or what happens if recommendations are not followed, leaving these points uncertain.

Department of Revenue Collaboration on Nonresident Real Estate Transactions

This bill requires the Department of Revenue to collaborate with stakeholders by December 31, 2027, to develop recommendations for improving compliance and enforcement related to nonresidents' capital gains from Arizona real estate sales.

What This Bill Does

• Requires the Department of Revenue to collaborate with stakeholders by December 31, 2027.
• Develops recommendations to ensure that nonresident taxpayers comply with tax laws regarding capital gains from Arizona real estate sales.
• Submits a report on these recommendations to state leaders and budget planners by June 30, 2028.

Who It Names or Affects

• The Department of Revenue
• Nonresidents involved in Arizona real estate transactions

Terms To Know

Stakeholders

People or groups who are affected by the bill and can provide input, such as tax experts, real estate agents, and nonresident taxpayers.

Capital gains

The profit made from selling an asset like property for more than its original purchase price.

Limits and Unknowns

• Does not specify what happens if the recommendations are not followed.
• It is unclear how many stakeholders will be involved in the collaboration process.

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.