ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	Senate: FIN DP 8-2-0-0 | 3rd Read 18-12-0-0

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SCR 1019: constitutional property tax exemptions

Sponsor:  Senator Mesnard, LD 17

Committee on Ways & Means

Overview

Amends the Constitution of Arizona to repeal sections regarding tax exemptions and replaces them with one section regarding property tax exemptions.

History

Arizona residents who are widows, widowers, people with disabilities or honorably discharged veterans with a disability are exempt from property taxation to the extent allowed by article IX of the Constitution of Arizona. (A.R.S. § 42-11111)

In Benjamin v. Arizona Department of Revenue, 163 Ariz. 182 (App. 1989), the Arizona Court of Appeals held that the veteran’s property tax exemption imposed an Arizona residency requirement that violated the 14^th Amendment to the U.S. Constitution

Provisions

1. Repeals the following articles of the Arizona Constitution relating to exemptions from property taxation:

a) Property subject to taxation; exemptions;

b) Exemption from tax; property of widowers;

c) Exemption from tax; property of persons who are disabled; and

d) Exemption from tax; increase in amount of exemptions; assessments and income. (Sec. 1)

2. States that all property in Arizona that is not exempt under United States law or under this section is subject to taxation as provided by law. (Sec. 2)

3. Declares that property that has been conveyed to evade taxation is not exempt. (Sec. 2)

4. Outlines the following properties as exempt from taxation:

a) All federal, state, county and municipal property;

b) Public debts, as evidenced by the bonds of this state and its counties, municipalities and political subdivisions;

c) Household goods that are owned by the user and used for noncommercial purposes;

d) Stocks of raw or finished materials, unassembled parts, works in process or finished products constituting the inventory of a retailer or wholesaler that is located in Arizona and principally engaged in the resale of the materials, parts, works or products regardless of if it is for resale. (Sec. 2)

5. Asserts that subsection C is self-executing and that people entitled to exemption are not required to take any action to receive the benefit of the exemption. (Sec. 2)

6. Allows the legislature to exempt the following properties by law:

a) An educational, charitable or religious association or institution that is not used or held for profit;

b) Personal property used in a trade, business or for agricultural purposes;

c) Cemeteries that are set apart and used for deceased human beings;

d) The property of a widow or widower who is a resident of Arizona;

e) The property of a resident of Arizona who is at least 18 years of age and who has a medically certified total and permanent disability;

f) The property of an honorably discharged veteran of the United States’ uniformed services who is a resident of Arizona and has a service or nonservice connected disability as determined by the United States Department of Veterans Affairs or its successor. (Sec. 2)

7. Allows the legislature to determine by law the qualifications for, and the amount of, the exemptions of property described in Provision 6. (Sec. 2)

8. States that a person is not eligible for exemption under more than one category as a widow, widower, person with a disability or a veteran with a disability. (Sec. 2)

9. Requires the Secretary of State to submit the proposition to the voters at the next general election. (Sec. 3)

10. Becomes effective if approved by voters and on proclamation of the Governor. (Sec. 1)

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14.                   SCR 1019

15. Initials CS/VP       Page 0 Ways & Means

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