All Roll Calls
Yes: 109 • No: 60
ArizonaHB 2704Fifty-seventh Legislature - First Regular SessionHouseWALLET
tax; distribution; county stadium district
Sponsored By: Jeff Weninger (Republican)
Signed by Governor
amusement classification (s)auditor generalboard of directorschase fieldconflict of interest (s)county stadium district (s)county stadium districtscounty transportation excise tax (s)definition (s)definitions (s)delayed repealdepartment of revenue (dor)distributiondistribution base (s)distribution of monies (s)district treasurerdor (see also: department of revenue)exemptions (s)formation of district (s)legislative findingslegislative intent (s)major league baseball facilitypowers and duties (s)prime contracting classification (s)professional baseball franchise organizationrates (s)remission of monies (s)reporting requirements (s)restaurant classification (s)retail classification (s)special taxing districtsspecial taxing districts - title 48 (s)state treasurertaxtax exclusion (s)taxation - title 42taxation of income - title 43termination (s)transportation - title 28withholding (s)
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
Contractors avoid tax on design services
Arizona prime-contracting tax does not apply to qualifying design-phase or listed professional services when a written contract separately states their terms and prices. The contract must be signed before modification work begins. Construction-phase services remain taxable, and services already deducted under another rule do not qualify for this exclusion.
Baseball teams face exit penalties
A covered baseball organization that leaves its district-owned facility faces a penalty of $10 million through October 1, 2035; $5 million from October 2, 2035, through October 1, 2045; or $1 million from October 2, 2045, through before October 1, 2050. The organization must also pay remaining district debts for listed stadium projects in specified cases. If it leaves, unspent and uncommitted transferred funds go back to the jurisdictions that raised them. The organization must report employee tax identification numbers by December 31 or pay $5 for each missing number, unless the failure had reasonable cause and was not willful neglect. Any covered departure penalty is split: 50% goes to the state, 25% to the county, and 25% to the city or town.
Stadium districts receive tax revenue
The law sends specified state, county, and local tax revenue from qualifying stadium activities to county stadium districts. Cities and towns send a monthly share, capped at $3.5 million per year; that cap rises 3% annually after December 31, 2026. The law also transfers 82% of a reported prior-year amount annually from January 1, 2026, through December 31, 2056, and sets a $500 million total cap that rises 3% annually after December 31, 2026. The law separately tracks covered stadium taxes through December 31, 2055. The city and county transfer rules give conflicting end dates: March 31, 2056, for transfers and repeal after March 31, 2055.
Vehicle buyers must prove tax deductions
For a vehicle sale that qualifies for the specified tax deduction, the dealer must keep the required certificate and records. If the Department of Revenue asks the purchaser to prove the certificate is complete and correct, the purchaser owes the tax, penalty, and interest the dealer would have owed if the purchaser cannot do so.
Stadium districts face new limits
In counties with at least 1.5 million residents, qualifying stadium districts cannot take property through eminent domain. Their boards include state, local, and business appointees, plus a nonvoting baseball representative; initial members must be appointed before January 1, 2026. District boards can make agreements for stadium work, but specified public funds can only pay for listed infrastructure repairs and improvements. Suites and club seating are excluded, and some league-required spaces need a two-thirds board vote. If a covered user ends or lets its use agreement expire, or the district gives up ownership, the municipality gets the district’s real property and improvements at no cost.
Sponsors & Cosponsors
Sponsor
Jeff Weninger
Republican • House
Cosponsors
Alma Hernandez
Democratic • House
Brian Fernandez
Democratic • Senate
Chris Lopez
Republican • House
David Gowan
Republican • Senate
Flavio Bravo
Democratic • Senate
Janae Shamp
Republican • Senate
John Gillette
Republican • House
Julie Willoughby
Republican • House
Junelle Cavero
Democratic • House
Justin Wilmeth
Republican • House
Lela Alston
Democratic • Senate
Lupe Contreras
Democratic • House
Michael Carbone
Republican • House
Neal Carter
Republican • House
Thomas "T.J." Shope
Republican • Senate
Timothy "Tim" Dunn
Republican • Senate
Roll Call Votes
House vote • 6/23/2025
FINAL: Passed
Yes: 35 • No: 20
House vote • 6/23/2025
CONCUR: Passed
Yes: 0 • No: 0
House vote • 6/19/2025
THIRD: Passed
Yes: 19 • No: 11
House vote • 3/24/2025
DPA
Yes: 4 • No: 3
House vote • 2/26/2025
THIRD: Passed
Yes: 35 • No: 25
House vote • 2/10/2025
C&P
Yes: 8 • No: 0
House vote • 2/4/2025
DPA
Yes: 8 • No: 1
Actions Timeline
Final Reading: Passed
6/23/2025HouseConcurrence: Passed
6/23/2025HouseThird Reading: Passed
6/19/2025HouseCommittee of the Whole: do pass amended
6/19/2025Houseundefined: PFC
6/17/2025Houseundefined: W/D
6/16/2025Houseundefined: DPA
3/24/2025HouseThird Reading: Passed
2/26/2025HouseCommittee of the Whole: do pass amended
2/25/2025Houseundefined: C&P
2/10/2025Houseundefined: DPA
2/4/2025House
Bill Text
Chaptered Version
House Engrossed Version
Introduced Version
Senate Engrossed Version