The resolution H.C.R. 2023 proposes a property tax exemption for combat veterans who have a combat-related, service-connected disability rated at 100 percent by the U.S. Department of Veterans Affairs (VA). If approved by voters, this measure would exempt such veterans from the full amount of property tax, thereby providing significant financial relief. The resolution also stipulates that the amount raised by local governments through primary property taxes cannot include any amount to offset the exemptions granted to these veterans. The exemption is set to apply starting from tax years beginning January 1, 2027.

Additionally, the resolution outlines that combat veterans qualifying for this exemption would be exempt from the statutory income limit and the requirement for their property to be valued below a certain assessment limit. The Arizona Department of Revenue would adjust the exemption amounts and income caps annually for inflation. The fiscal impact of this resolution is estimated to cost the state General Fund approximately $2.2 million starting in FY 2028, although this cost may be partially offset by savings from automatic school tax rate adjustments. The Secretary of State is tasked with submitting this proposition to voters at the next general election.

Statutes affected:
Introduced Version: 42-11111, 42-17151, 42-11152, 32-1601
House Engrossed Version: 42-11111, 42-17151, 42-11152, 32-1601