Assigned to APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2477
elderly assistance; property tax; appropriation
(NOW: elderly assistance fund; appropriation)
Purpose
Establishes the Elderly Assistance Fund (Fund) and appropriates $7,000,000 from the state
General Fund (state GF) in FY 2023 and each subsequent fiscal year to the Fund to reduce the
property taxes on a qualified individual's primary residence.
Background
The county board of supervisors in a county with a population of more than 2,000,000
persons must establish an elderly assistance fund. The elderly assistance fund is administered by
the county treasurer and must be used to reduce the primary school district taxes for qualified
individuals. To qualify, an individual must live in an organized school district in the county and
be approved for the property valuation protection option established in the Arizona Constitution
(A.R.S. § 42-17401).
To be eligible for a property valuation protection option, an Arizona resident must: 1) be
at least 65 years old; 2) if the property is owned by one person, have a total income of less than
400 percent of the supplemental security income benefit rate; 3) if the property is owned by two
or more individuals, have a combined total income of less than 500 percent of the supplemental
security income benefit rate; and 4) have used the property as their primary residence for at least
two years. If the county assessor approves a property valuation protection option, the value of the
primary residence must remain fixed as long as the owner remains eligible (Ariz. Const. art. 9
§ 18).
H.B. 2477 annually appropriates $7,000,000 from the state GF, beginning in FY 2023, to
the Fund.
Provisions
1. Establishes the Fund to be administered by the Department of Economic Security (DES) to
reduce the property taxes on a qualified individual's primary residence.
2. Specifies that the Fund consists of legislative appropriations and that monies in the Fund are
continuously appropriated.
3. Appropriates, beginning in FY 2023, $7,000,000 annually from the state GF to the Fund.
4. Requires DES to proportionately distribute the Fund monies to each Area Agency on Aging
(AAA) that chooses to participate in the Fund to reduce up to 60 percent of the property taxes
on a qualified individual's or emergency-approved individual's primary residence in that
AAA's service area. FACT SHEET
H.B. 2477
Page 2
5. Requires a qualified individual, after receiving approval from the county assessor for the
property valuation protection option, to apply to the participating AAA in which the individual
lives to receive assistance from the Fund.
6. Requires the participating AAA to:
a) approve applications for Fund assistance based on the greatest social need and greatest
economic need;
b) notify a qualified individual that the individual will receive Fund assistance, the dollar
amount of the assistance and that the individual is responsible for any remaining property
tax amount due;
c) pay the monies to the appropriate county treasurer on behalf of the qualified individual;
and
d) develop an emergency approval process for individuals that are not qualified due to
extenuating circumstances to apply to and receive assistance from the Fund.
7. Allows an individual to receive emergency approval for a total of three tax years, of which
only two may be consecutive.
8. Allows DES to retain up to five percent of Fund monies for Fund administration.
9. Allows an AAA that receives Fund monies to use, for administrative costs:
a) up to 10 percent of monies received for the first year; and
b) up to 5 percent of monies received for each subsequent year.
10. Requires each participating AAA, by November 1, to annually report to DES the:
a) number of qualified individuals receiving assistance;
b) total amount of assistance provided;
c) average amount of assistance provided;
d) total number of applications received; and
e) number of applicants that received assistance.
11. Requires DES, by December 31, to annually compile the reported information and submit the
report to the Governor, President of the Senate and Speaker of the House of Representatives
and provide a copy to the Secretary of State.
12. Repeals the Maricopa County Elderly Assistance Fund administered by the Maricopa County
Treasurer.
13. Defines greatest economic need, greatest social need, primary residence and qualified
individual.
14. Becomes effective on the general effective date.
House Action
WM 2/9/22 W/D
APPROP 2/16/22 DPA/SE 12-1-0-0
3
rd
Read 2/23/22 45-14-1
Prepared by Senate Research
March 4, 2022
LMM/sr