This bill proposes to amend current statutes regarding property tax exemptions by changing the method used to adjust the property assessment limit for qualifying individuals. Under current law, the Arizona Department of Revenue (ADOR) increases the property assessment limit based on the average annual percentage increase in the GDP price deflator for the two most recent complete state fiscal years. The bill would replace this method with an adjustment based on the average annual percentage increase in the Federal Housing Finance Agency House Price Index (FHFA HPI) for Arizona, starting in tax year 2026.

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 according to the FHFA HPI rather than the GDP price deflator. The bill aims to ensure that property tax exemptions remain relevant and reflective of current housing market conditions.

Statutes affected:
Introduced Version: 42-11111