SB1263 is a bill that significantly expands property tax exemptions for personal property in Arizona. It proposes to exempt all locally assessed personal property used for agricultural purposes or in trade or business from property tax, removing the current cap of $225,572 for tax year 2023. The bill also eliminates the additional depreciation schedule for certain personal property subclasses and the requirement for owners of tax-exempt personal property to submit annual property reports to the county assessor. These changes would apply to tax years starting January 1, 2024.

The bill repeals sections of the Arizona Revised Statutes related to the valuation of certain personal property and amends others to simplify language and remove references to personal property in various property classes. It also revises criteria for property tax exemptions, including those for businesses with a certain assessed valuation and properties used for renewable energy or agricultural purposes. The bill includes technical adjustments to the language concerning school district budget arguments. The fiscal impact statement has been updated, and the bill is set to become effective on the general effective date.

Statutes affected:
Introduced Version: 42-11127, 42-15002, 42-12002, 42-12001
Senate 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, 41-1531, 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, 42-12101, 49-282.06, 49-922, 42-12057, 42-12053, 42-16111, 42-12005