The proposed bill, if enacted, would amend existing statutes related to property tax exemptions for veterans in Arizona. Currently, veterans with service or nonservice-connected disabilities receive a property tax exemption of $4,188 if their property tax does not exceed $28,459. The bill would introduce a new provision that grants a complete exemption from property tax for combat veterans with a service-connected disability rated as 100% by the U.S. Department of Veterans Affairs. Additionally, it would modify the existing exemption for widows, widowers, and individuals with permanent disabilities, specifying that they would receive an exemption based on their disability rating and income limits.

Furthermore, the bill would ensure that the amount raised from primary property taxes does not include funds to offset the exemptions for combat veterans with qualifying disabilities. It also includes provisions for determining eligibility for the exemption, requiring annual income calculations and notifications to the county assessor regarding any disqualifying events. The changes would take effect for tax years beginning after December 31, 2025.

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