The proposed bill would significantly enhance the current property tax exemption for personal property used in agricultural purposes or in trade or business. Under current law, there is an exemption for up to $207,366 of specified personal property, which is adjusted annually for inflation. The bill would exempt all locally assessed personal property used for agricultural purposes or in a trade or business from property tax, broadening the exemption's scope. It would also remove all locally assessed personal property that is used for agricultural purposes or in trade or business from the applicable property tax classifications and repeal the additional depreciation schedule applicable to certain subclasses of class 1, class 2, and class 6 personal property. Additionally, the bill would apply the exemption from the requirement to provide an annual property self-report to the county assessor for those who own or control tax-exempt personal property, simplifying compliance for property owners. The bill is set to become effective on January 1, 2032, and includes provisions for technical and conforming changes to ensure consistency within the statutes. It also proposes updates to various sections of the Arizona Revised Statutes, clarifying property classifications and repealing outdated provisions, ultimately aiming to streamline the property tax exemption process and enhance clarity in property classifications and assessments.

Statutes affected:
Introduced Version: 15-445, 15-448, 15-459, 15-481, 42-5075, 42-11054, 42-11127, 42-12001, 42-12002, 42-12004, 42-12006, 42-12007, 42-12054, 42-12058, 42-13054, 42-13055, 42-13056, 42-13304, 42-13351, 42-15002, 42-15005, 42-15053, 15-825.02, 42-12003, 15-912.01, 15-482, 15-457, 15-458, 15-943, 15-241, 15-975, 15-997, 16-509, 16-204, 15-544, 15-910, 15-430, 15-905, 15-422, 15-423, 15-424, 15-426, 15-403, 15-947, 15-949, 15-971, 15-447, 32-1121, 45-604, 42-1301, 41-1514.02, 42-5061, 42-5159, 15-1670, 41-1516, 9-463.05, 11-1102, 49-701, 42-5029, 42-5032.01, 42-5032.02, 3-361, 3-262, 42-5008.01, 41-4001, 44-1761, 42-15101, 42-16002, 42-14053, 42-14151, 42-14503, 42-14102, 42-14201, 42-14159, 32-2197, 41-867, 42-12101, 49-282.06, 49-922, 42-12057, 42-12053, 42-16111, 42-12005
House Engrossed Version: 15-445, 15-448, 15-459, 15-481, 42-5075, 42-11054, 42-11127, 42-12001, 42-12002, 42-12004, 42-12006, 42-12007, 42-12054, 42-12058, 42-13054, 42-13055, 42-13056, 42-13304, 42-13351, 42-15002, 42-15005, 42-15053, 15-825.02, 42-12003, 15-912.01, 15-482, 15-457, 15-458, 15-943, 15-241, 15-975, 15-997, 16-509, 16-204, 15-544, 15-910, 15-430, 15-905, 15-422, 15-423, 15-424, 15-426, 15-403, 15-947, 15-949, 15-971, 15-447, 32-1121, 45-604, 42-1301, 41-1514.02, 42-5061, 42-5159, 15-1670, 41-1516, 9-463.05, 11-1102, 49-701, 42-5029, 42-5032.01, 42-5032.02, 3-361, 3-262, 42-5008.01, 41-4001, 44-1761, 42-15101, 42-16002, 42-14053, 42-14151, 42-14503, 42-14102, 42-14201, 42-14159, 32-2197, 41-867, 42-12101, 49-282.06, 49-922, 42-12057, 42-12053, 42-16111, 42-12005