The proposed bill, if enacted, would amend current statutes regarding property tax exemptions by updating the method used to adjust the property assessment limit for qualifying individuals. Currently, the Arizona Department of Revenue (ADOR) increases the property assessment limit based on the average annual percentage increase in the GDP price deflator. The bill would change this to utilize the average annual percentage increase in the Federal Housing Finance Agency House Price Index (FHFA HPI) for Arizona, starting in tax year 2026. This change aims to better reflect the actual market conditions affecting property values.

Additionally, the bill introduces a definition for "federal house price index" and makes conforming changes to the existing language. It retains the current exemption amounts and income limits but specifies that the assessment limit will be adjusted based on the FHFA HPI rather than the GDP price deflator. The bill also clarifies the definitions of terms related to property tax exemptions, ensuring consistency with the new indexing method. Overall, these updates are intended to provide a more accurate and equitable framework for property tax exemptions in Arizona.

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