SB1496 proposes changes to the method used to annually adjust the property assessment limit for certain property tax exemptions in Arizona. Currently, the Arizona Department of Revenue (ADOR) increases the exemption amount, income cap, and property assessment limit based on the average annual percentage increase in the GDP price deflator. The bill seeks to modify this by requiring ADOR to use the Federal Housing Finance Agency House Price Index (FHFA HPI) for Arizona instead of the GDP price deflator, starting in tax year 2025, to adjust the property assessment limit.

The bill also defines "federal house price index" as the average measure of movement of single-family house prices in the United States published by the FHFA for Arizona. The fiscal impact of the bill is unquantifiable due to a lack of specific property and income data, but the first-year fiscal impact in FY 2026 is expected to be relatively limited. The bill would take effect on the general effective date.

Statutes affected:
Introduced Version: 42-11111
Senate Engrossed Version: 42-11111