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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
veterans; disabilities; property tax exemption
Purpose
Conditional on the voter approval of S.C.R. 1009, exempts, from property tax, the property of veterans with service-connected disabilities who are Arizona residents.
Background
The property of Arizona residents who are widows, widowers, persons with disabilities or honorably discharged veterans with a service or nonservice-connected disability, is exempt from taxation to the extent allowed by the Arizona Constitution and subject to the conditions and limitations prescribed by statute. The Arizona Department of Revenue calculates changes in the exemption and household income limitations based on the average annual increase, if any, in the gross domestic product price deflator in the two most recent complete state fiscal years using data provided by the U.S. Department of Commerce (A.R.S. § 42-11111).
For TY 2022, exemptions from property taxation for widows, widowers and persons with disabilities are allowed in the amount of: 1) $4,188 if the person's total assessment does not exceed $28,459; or 2) no exemption if the person's total assessment exceeds $28,459. To qualify for a property tax exemption, a claimant's total income and the income from all sources of the claimant's children who resided with the claimant in the year immediately preceding the year for which the claimant applies for the exemption may not exceed: 1) $34,901 if none of the claimant's children under 18 years of age resided with the claimant; or 2) $41,870 if one or more of the claimant's children residing with the claimant were under 18 years of age or had a total and permanent physical or mental disability.
The Joint Legislative Budget Committee fiscal note estimates a net state General Fund cost of $11.3 million beginning in FY 2024. The fiscal note includes additional information and a sample scenario (JLBC fiscal note).
Provisions
1. Exempts the property of a veteran with a service-connected disability who is an Arizona resident from property tax, in the following amounts:
a) $4,188, if the person's total assessment does not exceed $28,459; or
b) no exemption if the person's total assessment exceeds $28,459.
2. Exempts a veteran's property tax exemption from the statutory income limits.
3. Requires a veteran with a service-connected disability who is an Arizona resident to initially establish eligibility for the property tax exemption by filing an affidavit with the county assessor.
4. Makes technical changes.
5. Conditions the enactment of this legislation on the enactment of S.C.R. 1009, Fifty-Fifth Legislature, Second Regular Session, by vote of the people at the next general election.
6. Becomes effective on the general effective date or later, subject to the provisions of the conditional enactment.
Amendments Adopted by the Finance Committee
· Inserts S.C.R. 1009 in the blank space provided for that purpose.
Senate Action
FIN 2/16/22 DPA
8-1-1
APPROP 2/22/22 DP 10-0-0
Prepared by Senate Research
February 22, 2022
MG/slp