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ARIZONA STATE SENATE

Fifty-Fourth Legislature, First Regular Session

 

FACT SHEET FOR H.B. 2097

 

personal property; reporting; exemption

Purpose

            Prohibits a county assessor from requiring application from a person that owns personal property, in order to be granted exemption from the reporting requirement, if that person has a constitutional exemption.

Background

            Current statute requires, on or before February 1 of each year, a county assessor to mail a form, notice or demand to each person who owns or has charge or control of taxable personal property in Arizona. Each person shall prepare and deliver to the assessor a correct report of property on or before April 1 of each year, except for property that is not required to be reported due to a constitutional exemption. On written request and for good cause shown, the assessor may extend for up to 30 days the time for filing the report (A.R.S. § 42-15053).

            The Arizona Constitution states that the Legislature may exempt personal property that is used for agricultural purposes or in a trade or business from taxation in a manner provided by law, except that the exemption does not apply to any amount of the full cash value of the personal property of a taxpayer that exceeds $50,000 (Ariz. Const. art. 9 § 2). Because of an allowance for annual variations in a designated national inflation index, that amount is currently $176,000.

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.      Specifies that personal property that is not required to be reported because of constitutional exemption is exempt from the duty to report that personal property to a county assessor.

2.      Prohibits a county assessor from requiring application from a person that owns personal property, in order to be granted exemption from the reporting requirement, if that person has a constitutional exemption.

3.      Makes technical and conforming changes.

4.      Becomes effective on the general effective date.

House Action

WM                 1/30/19      DP     9-0-0-1

GOV               2/14/19      DP     11-0-0-0

3rd Read          3/4/19                   35-22-3

Prepared by Senate Research

March 8, 2019

CS/gs