This bill proposes to amend current statutes regarding the business personal property tax exemption in Arizona. Under the existing law, the exemption is capped at $207,366 for personal property used in trade or business or for agricultural purposes. The bill seeks to increase this exemption limit to $500,000, thereby allowing taxpayers to exempt a larger portion of their personal property from taxation. This change is significant as it aims to provide greater financial relief to businesses and agricultural operations.

Additionally, the bill maintains the provision that the Arizona Department of Revenue will continue to adjust the exemption amount annually based on the employment cost index. The effective date for this increased exemption is set for January 1, 2026. The bill also includes a technical amendment to clarify the language regarding the employment cost index, ensuring that it refers to the appropriate bureau of labor statistics. Overall, if enacted, this bill would substantially raise the threshold for tax exemptions on business personal property, reflecting a shift in policy to support local businesses.

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