The bill SB1495 proposes to increase the business personal property tax exemption from the current amount of $207,366 to $500,000, effective January 1, 2025. This exemption applies to personal property used for agricultural purposes or in trade or business, as defined in the Arizona Revised Statutes. The current law allows for an annual adjustment of the exemption amount for inflation, which for tax year 2023 is set at $225,572.

Additionally, the bill specifies that the amended exemption amount will take effect after December 31, 2024, and it is expected to have a fiscal impact on the state General Fund, with an estimated cost of $5,300,000 beginning in FY 2026, offset by savings from automatic school tax rate adjustments. Overall, the primary change is the significant increase in the exemption limit, which aims to provide greater financial relief to businesses and agricultural entities.

Statutes affected:
Introduced Version: 42-11127
Senate Engrossed Version: 42-11127