Senate Republicans Fight Back Against Fraud, Foreclosure, and Tax Exploitation
FOR IMMEDIATE RELEASE
Thursday, February 26, 2026
PHOENIX, ARIZONA—Arizona Senate Republicans are advancing a slate of legislation aimed at protecting homeowners, defending private property rights, and giving taxpayers meaningful relief at a time when bad actors and government failures continue to threaten Arizonans' financial security. The package targets unfair taxation, abusive foreclosure practices, and real estate fraud, delivering commonsense reforms that put Arizona families, not special interests or bureaucratic loopholes, first. Today, these bills passed the Senate and now move to the House for further consideration.
SB 1633, sponsored by Senator J.D. Mesnard, establishes an individual income tax subtraction for net capital gains derived from the sale or exchange of a taxpayer's primary residence, ensuring the tax code does not punish homeowners for selling their home and reinvesting in their future.
SB 1246, sponsored by Senator Wendy Rogers, raises the delinquency threshold for a condominium owners' association (COA) to foreclose on a common expense lien to $10,000 and extends the required delinquency period to 18 months. The bill specifies that for any COA or planned community association (HOA) special assessment with an initial value of $10,000 or more, only the 18-month delinquency threshold applies. SB 1246 is crucial for allowing homeowners, often at the end of their lives, to stay in their homes while equitable financing is arranged.
SB 1805, sponsored by Senator David Gowan, requires a county recorder, before recording a quitclaim deed, to verify the commission status of any notary public who notarized the conveyance of real property (add why this is important). The bill also allows county recorders to refer suspected fraudulent activity to the county attorney for investigation and potential prosecution, adding a critical safeguard against property theft and deed fraud.
"Homeownership is the cornerstone of financial independence, and Arizona families deserve laws that protect – not undermine their investment," said Senator Mesnard. "This legislation stops the government from taking an unnecessary cut, prevents associations from weaponizing foreclosure, and shuts down fraud before it steals someone's home from under them."
"For too long, taxpayers and homeowners have been treated like collateral damage," said Senator Rogers. "These bills draw a clear line: your home is not a revenue source for the government, and it's not leverage for abusive enforcement tactics. We are restoring balance, fairness, and basic due process."
"Property rights matter, and so does accountability," said Senator Gowan. "Whether it's taxes, foreclosures, or fraudulent deeds, this package sends a strong message: Arizona will not tolerate systems that punish responsible homeowners while enabling bad actors. This is a conservative reform that protects people where it matters most – their homes and their livelihoods."
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus