AZ SB1355

Establishes two new funding sources for the housing trust fund: withholding tax collections from nonresident real estate sales and investment earnings, in addition to existing unclaimed property deposits.

Requires a 2% withholding on Arizona real estate sales by title insurance companies, financial institutions, or attorneys when the seller is a nonresident individual or foreign corporation, with a $100,000 sales price threshold and several exemptions.

Directs 55% of unclaimed property monies to the housing trust fund, with the first $2 million annually going to the seriously mentally ill housing trust fund and the next $24.5 million to the department of revenue administrative fund.

Allows sellers to provide written affirmations certifying residency status, primary residence ownership, or estimated tax liability to avoid withholding requirements.

Imposes penalties of $500 or 10% of the amount required to be withheld (up to $2,500) on entities that fail to comply with withholding and remittance requirements.