Arizona Revised Statutes Title 42. Taxation § 42-17311. Events requiring payment of deferred tax

1. The individual who claimed the deferral dies without a surviving spouse who qualifies under § 42-17302.

2. The tax deferred residence is sold or becomes subject to a fully executed, binding contract of sale or title to the residence is otherwise transferred to persons other than the individual or the individual's spouse who qualifies under § 42-17302. A tax deferred residence may not be transferred or conveyed unless the deferred property taxes, interest and costs are paid in full.

3. The residence is no longer the residence of the individual and, in the case of a married individual, the individual's spouse who qualifies under § 42-17302, unless the individual or spouse is required to be absent from the residence due to illness.

4. The residence becomes income producing property.