If this bill were to become law, it would amend current statutes regarding the business personal property tax exemption in Arizona. Specifically, it would increase the exemption limit from the current maximum of $207,366 to $500,000 for personal property used in trade or business or for agricultural purposes. This change aims to provide greater financial relief to businesses by allowing them to exempt a larger portion of their personal property from taxation. Additionally, the bill includes a provision that mandates the Arizona Department of Revenue to continue adjusting the exemption amount annually based on the employment cost index, ensuring that the exemption keeps pace with inflation. The effective date for this increased exemption would be January 1, 2026, with the amended statute remaining in effect thereafter. The bill also makes technical changes to the existing language for clarity and consistency.

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