ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

Senate: FIN DP 7-3-0-0 | 3rd Read 17-12-1-0

House: WM DP 9-1-0-0


SCR 1011: constitutional property tax exemptions

Sponsor: Senator Mesnard, LD 17

House Engrossed

Overview

Amends the Arizona Constitution, subject to voter approval, to repeal sections relating to property tax exemptions and replaces the sections with a consolidated property tax exemption section.

History

The Arizona Constitution currently has provisions relating to property tax dispersed among sections 2, 2.1, 2.2 and 2.3 of article IX. These sections outline which property is exempt from taxation as well as the qualifications and amounts for each exemption (Arizona Constitution art. IX, 2, 2.1, 2.2). According to the State Constitution, the Legislature may by law increase the amount of the exemptions, the total permissible amount of assessments or the permissible amount of income for property listed (Arizona Constitution art. IX, 2.3).

Provisions

1.   Repeals Article IX, sections 2, 2.1, 2.2 and 2.3 of the State Constitution, relating to exemptions from property taxation. (Sec. 1)

2.   Creates a new Article IX, section 2 of the State Constitution. (Sec. 1)

3.   Establishes that property that is not exempt under U.S. laws or in Article IX, section 2 of the State Constitution is subject to taxation. (Sec. 2)

4.   Establishes that property that has been conveyed to evade taxation is not exempt. (Sec. 1)

5.   Lists the following property as exempt from taxation:

a)   Federal, state, county and municipal property;

b)   Public debts, as evidenced by bonds;

c)   User owned household goods used for noncommercial purposes; and

d)   Resale products that constitute the inventory of a retailer or wholesaler. (Sec. 1)

6.   Grants the Legislature with the power to exempt the following property:

a)   The property of non-profit educational, charitable or religious association;

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

c)   Cemeteries set apart to inter deceased human beings;

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

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

f) The property of an honorably discharged U.S. veteran who has a service or nonservice connected disability and is a state resident. (Sec. 1)

7.   Establishes that the Legislature may determine by law the qualifications for, and the amount of, these exemptions. (Sec. 1)

8.   States that a person is not eligible for exemption under more than one of the categories listed. (Sec. 1)

9.   States that the Secretary of State shall submit this proposition to voters at the next general election. (Sec. 1)☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☒ Fiscal Note

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13.  SCR 1011

14.  Initials VP/ES/NM Page 0 House Engrossed

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