Arizona lawmakers are considering a new bill that would eliminate state capital gains taxes on certain home sales. Supporters say the measure could help ease the state’s housing shortage by encouraging more residents to sell homes and increase market inventory. Currently, homeowners pay state income tax on profits from the sale of a residence that exceeds federal exemptions, but the proposed legislation would remove this requirement for primary residence sales.
Those in favor argue that waiving the capital gains tax could incentivize older homeowners to downsize or relocate, making room for new buyers in an increasingly competitive housing market. However, critics warn that the plan may primarily benefit wealthier homeowners and reduce the state’s tax revenue, potentially impacting funding for public services.
Read the original Arizona home sales article.