The proposed bill, if enacted, would significantly amend current property tax statutes in Arizona, particularly concerning exemptions for combat veterans. Under the new provisions, C. The property of a combat veteran with a service connected disability that is combat related and that is rated as one hundred percent by the United States department of veterans affairs is fully exempt from taxation. This replaces the existing exemption structure, which currently allows for a limited exemption of $4,188 for veterans with service or nonservice connected disabilities, provided their property assessment does not exceed $28,459. The bill also introduces D. The property of a widow or widower, a person with a total and permanent disability and a veteran with a service or nonservice connected disability who does not qualify for a full exemption under subsection C of this section is exempt in the amount of $4,188, with further adjustments based on the percentage of the veteran's disability. Additionally, the bill mandates that The amount to be raised from primary property taxes may not include the amount to offset the aggregate amount of exemptions provided under section 42-11111, subsection C for the tax year. This change aims to ensure that the financial impact of these exemptions does not affect the overall tax revenue raised from primary property taxes. The act is set to apply to tax years beginning from and after December 31, 2025, thereby establishing a clear timeline for implementation.

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