By David Baker | AZ Family
A bill is moving through the state Legislature that supporters say would allow Arizona home sellers to keep more of their money.
The Finance Committee passed Monday in a 4-2-1 vote Senate Bill 1633, which would remove the capital gains tax from the sale of a primary home if the seller has been at the house for at least five taxable years.
Currently, those who sell their homes can face a tax bill on the equity they’ve built while being there. Republicans said SB 1633 treats homes as a place to live, not an investment, and frees up existing houses.
“Taxing gains on a primary residence can trap people in homes that no longer work for them,” Sen. J.D. Mesnard, a Republican from Chandler, said in an emailed statement. “Seniors may delay downsizing. Families may stay in houses that are too large, too small, or too far from work. Workers may think twice about relocating for a better opportunity. By removing this tax barrier, SB 1633 allows families to make decisions based on real life needs, not fear of a tax hit. When someone sells their home, the state should not take a cut of the equity they worked years to build.”
