Chapter 0099 - 442R - H Ver of SB1335

Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:

1. Article IX, section 1, Constitution of Arizona, is proposed to be amended as follows if approved by the voters and on proclamation of the Governor:

1. Surrender of power of taxation; uniformity of taxes

Section 1. The power of taxation shall never be surrendered, suspended, or contracted away. Except as provided by section 18 of this article, all taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax, and shall be levied and collected for public purposes only.

2. Article IX, section 18, Constitution of Arizona, is proposed to be amended as follows if approved by the voters and on proclamation of the Governor:

18.||Residential ad valorem tax limits; limit on increase in values; definitions

Section 18. (1) The maximum amount of ad valorem taxes that may be collected from residential property in any tax year shall not exceed one per cent of the property's full cash value as limited by this section. For the purpose of this section, "residential property" includes all owner occupied real property and improvements thereto and all owner occupied mobile homes used for residential purposes. For the purpose of this section, "owner" includes any purchaser under a contract of sale or under a deed of trust.

(2) The limitation provided in subsection (1) does not apply to:

(a) Ad valorem taxes or special assessments levied to pay the principal of and interest and redemption charges on bonded indebtedness or other lawful long‑term obligations issued or incurred for a specific purpose.

(b) Ad valorem taxes or assessments levied by or for property improvement assessment districts, improvement districts and other special purpose districts other than counties, cities, towns, school districts and community college districts.

(3) Except as otherwise provided by subsections (5), and (6) and (7) of this section the value of real property and improvements and the value of mobile homes used for all ad valorem taxes except those specified in subsection (2) shall be the lesser of the full cash value of the property or:|

(a) For tax year 1980, an amount ten per cent greater than the full cash value determined for tax year 1979.

(b) For tax years 1981 and 1982, an amount ten per cent greater than the value of property determined pursuant to this subsection for the prior year.

(c) For tax year 1983 and each tax year thereafter, an amount ten per cent greater than the value of property determined pursuant to this subsection for the prior year or an amount equal to the value of property determined pursuant to this subsection for the prior year plus one‑fourth of the difference between such value and the full cash value of the property for current tax year, whichever is greater.

(4) The legislature shall by law provide a method of determining the value, subject to the provisions of subsection (3), of new property. and of property changed since or not taxed in 1979, which results in value for tax purposes for such property, equivalent to the value for tax purposes for similar property which was in existence and unchanged since 1979.

(5) The limitation on increases in the value of property prescribed in subsection (3), paragraphs (a), (b) and (c) does not apply to equalization orders which that the legislature specifically exempts by law from such limitation.

(6) Subsection (3) does not apply to:

(a) Property used in the business of patented or unpatented producing mines and the mills and the smelters operated in connection with the mines. ;|

(b) Producing oil, gas and geothermal interests. ;|

(c) Real property, improvements thereto and personal property used thereon used in the operation of telephone, telegraph, gas, water and electric utility companies. ;|

(d) Aircraft which that is regularly scheduled and operated by an airline company for the primary purpose of carrying persons or property for hire in interstate, intrastate or international transportation. ;|

(e) Standing timber. ;|

(f) Property used in the operation of pipelines. ; and

(g) Personal property regardless of use except mobile homes.

(7) A resident of this state who is sixty-five years of age or older may apply to the county assessor for a property valuation protection option on the person's primary residence, including not more than ten acres of undeveloped appurtenant land. The resident may apply for a property valuation protection option after residing in the primary residence for two years. If ONE PERSON OWNS THE PROPERTY, the person's total income from all sources including nontaxable income shall not exceed four hundred per cent of the supplemental security income benefit rate established by section 1611 of the social security act. If the property is owned by two or more persons, including a husband and wife, at least one of the owners must be sixty‑five years of age or older and the owners' combined total income from all sources including nontaxable income shall not exceed five hundred per cent of the supplemental security income benefit rate established by section 1611 of the social security act. The assessor shall review the owner's income qualifications on a triennial basis and shall use the owner's average total income during the previous three years for the review. If the county assessor approves a property valuation protection option, the value of the Primary Residence shall remain fixed at the full cash value in effect during the year the property valuation protection option is filed and as long as the owner remains eligible. To remain eligible, The county assessor shall require a qualifying resident to reapply for the property valuation protection option every three years and shall send a notice of reapplication to qualifying residents six months before the three year reapplication requirement. If title to the property is conveyed to any person who does not qualify for the property valuation protection option, the property valuation protection option terminates, and the property shall revert to its current full cash value.

(7) (8) The legislature shall provide by law a system of property taxation consistent with the provisions of this section.

(9) For purposes of this section:

(a) "Owner" means the owner of record of the property and includes a person who owns the majority beneficial interest of a living trust.

(b) "Primary residence" means all owner occupied real property and improvements to that real property in this state that is a single family home, condominium, townhouse or an owner occupied mobile home and that is used for residential purposes.

3. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article XXI, Constitution of Arizona.

HOUSE CONCURRENT RESOLUTION 2028