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BILL # SB 1158 |
TITLE: property tax; exemption; widows; widowers |
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SPONSOR: Gowan |
STATUS: As Introduced |
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PREPARED BY: Hans Olofsson |
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This bill would provide a full exemption for the property of a widow or widower of a deceased "First Responder" (law enforcement officer, firefighter, or ambulance attendant) who was killed in the line of duty or who died from the injuries suffered in the line of duty. The bill would go into effect January 1, 2026.
Estimated Impact
Due to the small number of properties that would initially be affected by the proposed property tax exemption, we expect the fiscal impact to be minimal.
We do not have specific data on the number of annual "line of duty" deaths for First Responders in Arizona. However, available information suggests that the number of such deaths is small. From 2018 to 2020, the Arizona Public Safety Personnel Retirement System (PSPRS) reported the deaths of 12 first responders in the line of duty, an average of 4 per year. According to the Bureau of Labor Statistics (BLS) Census of Fatal Occupational Injuries, the total number of annual fatal injuries among all local and state government employees in Arizona ranged from a low of 3 to a high of 9 during the 2021-2023 period. (The BLS data on fatal injuries includes all occupations within Arizona state and local government, which therefore may overstate "line of duty" deaths among First Responders.) This information suggests that the number of properties that would qualify for the exemption each year would be small.
According to the most recent Abstract of the Assessment Roll published by the Department of Revenue (DOR), the state had a total of 1,649,871 Class 3 (primary owner-occupied) properties in 2024. The average Limited Property Value (LPV) of these properties is $231,000, which corresponds to a net assessed value (NAV) of $23,100. If we assume that on average 4 First Responders die in the line of duty each year and each of them owns a house and leaves a widow or widower behind, we estimate that the total annual NAV reduction would be $92,400 (= $23,100 x 4).
Subject to certain property assessment and income limits, the widows or widowers of the First Responders would receive a NAV exemption of $4,748 per property under current law. Assuming that those assessment and income limits are met, the total NAV exemption under current law would be $18,992 (= $4,748 x 4). Therefore, relative to current law, the net reduction in NAV under the bill and our assumptions outlined above would be $73,408 (= [$23,100 - $4,748] x 4). This amount represents less than 0.0001% of the total statewide property tax base of $88.4 billion. Therefore, due to the minimal impact of the bill on the statewide property tax base, we expect the fiscal impact to be minimal as well.
Local Government Impact
For the same reasons as outlined above, we expect the local government impact to be minimal.
1/28/25