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 is significant as it raises the threshold for tax exemption, potentially benefiting businesses by reducing their tax liabilities.

Additionally, the bill includes a provision that mandates the Arizona Department of Revenue to adjust the exemption amount annually based on the employment cost index, ensuring that the exemption keeps pace with inflation. The effective date for this increase would be January 1, 2026, and the bill also makes technical changes to the existing language in the statutes. Overall, the proposed updates aim to provide greater financial relief to businesses through a higher personal property tax exemption.

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