The proposed bill, if enacted, would amend several sections of the Arizona Revised Statutes related to taxation. It would expand the existing transaction privilege tax (TPT) and use tax exemption for pipes and valves used to transport wastewater, in addition to oil, natural gas, artificial gas, water, and coal slurry. Furthermore, it introduces a full property tax exemption for veterans with a service-connected disability rated at 100%, and allows the surviving spouse of such veterans to maintain this exemption under specific conditions. For veterans with a nonservice-connected disability or a service-connected disability rated below 100%, the bill specifies a property tax exemption amount of $4,188, which can be adjusted based on the veteran's disability percentage.

Additionally, the bill increases the exemption for personal property used in trade or agriculture from $207,366 to $500,000, effective January 1, 2026. It also raises the individual income tax subtraction for unreimbursed adoption expenses from $3,000 to $5,000 for single and head of household filers, and to $10,000 for married couples filing jointly, starting with the 2026 taxable year. The bill includes technical and conforming changes to ensure clarity and consistency within the statutes.

Statutes affected:
Introduced Version: 42-5061, 42-5159, 42-11111, 42-11127, 43-1022, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 42-11152, 32-1601, 42-12002, 42-12001