The proposed bill, SB1263, seeks to enhance property tax exemptions for personal property utilized in agricultural activities or business operations by removing the current cap of $207,366 on exempted personal property. This change would allow for full exemption of all locally assessed personal property used for these purposes. Additionally, the bill eliminates the requirement for property owners to report their tax-exempt holdings to the county assessor, thereby simplifying the process for taxpayers. The bill also repeals the additional depreciation schedule for certain subclasses of personal property and reclassifies the centrally assessed personal property of electric cooperatives.

Moreover, SB1263 amends various sections of the Arizona Revised Statutes to clarify property classifications and definitions, particularly concerning renewable energy and agricultural properties. It removes outdated provisions, such as those related to solar energy device exemptions, and emphasizes the need for proper documentation for claiming exemptions. The overall goal of the bill is to streamline property tax regulations, enhance clarity for both taxpayers and assessors, and provide broader tax relief for businesses and agricultural operations, with the changes taking effect for tax years beginning January 1, 2024.

Statutes affected:
Introduced Version: 42-11127, 42-15002, 42-12002, 42-12001
Senate Engrossed Version: 15-445, 15-448, 15-459, 15-481, 42-5075, 42-11054, 42-11127, 42-12001, 42-12002, 42-12004, 42-12006, 42-12007, 42-12054, 42-12058, 42-13054, 42-13055, 42-13056, 42-13304, 42-13351, 42-15002, 42-15005, 42-15053, 15-825.02, 42-12003, 15-912.01, 15-482, 15-457, 15-458, 15-943, 15-241, 15-975, 15-997, 16-509, 16-204, 15-544, 15-910, 15-430, 15-905, 15-422, 15-423, 15-424, 15-426, 15-403, 15-947, 15-949, 15-971, 15-447, 32-1121, 45-604, 41-1531, 41-1514.02, 42-5061, 42-5159, 15-1670, 41-1516, 9-463.05, 11-1102, 49-701, 42-5029, 42-5032.01, 42-5032.02, 3-361, 3-262, 42-5008.01, 41-4001, 44-1761, 42-15101, 42-16002, 42-14053, 42-14151, 42-14503, 42-14102, 42-14201, 42-14159, 32-2197, 42-12101, 49-282.06, 49-922, 42-12057, 42-12053, 42-16111, 42-12005