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, but the bill seeks to increase this limit to $500,000. This change would apply to personal property used for agricultural purposes or in trade or business, as defined in the current statutes. 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. Furthermore, the bill includes a technical amendment to clarify that the updated exemption amount will take effect on January 1, 2026, and specifies that the amended section will be effective from and after December 31, 2025. The adjustments aim to provide greater tax relief for businesses and agricultural operations by increasing the threshold for property tax exemptions.

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