House of Representatives

SCR 1022

property tax exemptions; increases

Sponsors: Senator Martin, Senator Burns, Senator Gould et a

DP	Committee on Commerce
x	Committee on Ways and Means
	Caucus and COW
	As Engrossed and As Passed the House

SCR 1022, upon approval by the voters and by proclamation of the Governor, increases the amount of the agriculture and business personal property tax exemption and increases the amount of income for qualification for the Senior Property Valuation Freeze,

History

The Arizona Constitution requires all property to be subject to tax unless specifically exempt.  In 1996, the Legislature passed a resolution that was approved by the voters in November of that year, which amended the constitution to allow a personal property tax exemption for certain business and agricultural property.  The original exempt amount was for the first $50,000 of personal property.  The ballot proposition allowed this amount to be adjusted annually for inflation.  The Department of Revenue is responsible for adjusting the amount based on the average annual percentage increase in the Gross Domestic Product (GDP).  For 2006, the exempt amount is now $59,099.

The Senior Property Valuation Freeze is a constitutional provision that was established in 2000 which allows an Arizona resident who is 65 years or older to apply to the county assessor for a property valuation freeze.  The freeze is in effect for three years if the senior meets certain income qualifications (400% of the SSI benefit rate and 500% if joint ownership).  The income levels for 2005 are $28,994 for a single owner or $36,180 for two or more owners. The senior property owner must apply every three years.  This is a freeze of the value of the property, not a freeze of the taxes.

Provisions

· Increases the amount of the agriculture and business personal property tax exemption to $150,000.

· Increases the permissible income amount for an individual to qualify for the Senior Property Valuation Freeze from 400 percent to 500 percent of the supplemental security income benefit rate.

· Increases the permissible income amount for two or more persons, including a husband and wife, to qualify for the Senior Property Valuation Freeze from 500 percent to 600 percent of the supplemental security income benefit rate. 

· Requires the Secretary of State to submit the proposition to the voters at the next general election.

· Becomes effective if approved by the voters and on proclamation of the Governor. 

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Forty-seventh Legislature

Second Regular Session          2          March 21, 2006

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