HCR 2017
Initials VP/ES Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: WM DP 8-0-0-2
HCR2017: constitutional property tax exemptions; consolidation
Sponsor: Representative Carter, LD 8
Caucus & COW
Overview
Amends the Arizona Constitution, subject to voter approval, to repeal sections relating to property
tax exemptions and replaces the sections with a consolidated property tax exemption section.
History
The Arizona Constitution currently has provisions relating to property tax dispersed among
sections 2, 2.1, 2.2 and 2.3 of article IX. These sections outline which property is exempt from
taxation as well as the qualifications and amounts for each exemption (Arizona Constitution art.
IX, § 2, 2.1, 2.2). According to the state constitution, the Legislature may by law increase the
amount of the exemptions, the total permissible amount of assessments or the permissible
amount of income for property listed (Arizona Constitution art. IX, § 2.3).
Provisions
1. Repeals Article IX, sections 2, 2.1, 2.2 and 2.3 of the State Constitution, relating to exemptions
from property taxation. (Sec. 1)
2. Creates a new Article IX, section 2 of the State Constitution. (Sec. 1)
3. Establishes that property that is not exempt under U.S. laws or in Article IX, section 2 of the
State Constitution is subject to taxation. (Sec. 2)
4. Establishes that property that has been conveyed to evade taxation is not exempt. (Sec. 2)
5. Lists the following property as exempt from taxation:
a) Federal, state, county and municipal property;
b) Public debts, as evidenced by bonds;
c) User owned household goods used for noncommercial purposes; and
d) Resale products that constitute the inventory of a retailer or wholesaler. (Sec. 1)
6. Grants the Legislature with the power to exempt the following property:
a) The property of non-profit educational, charitable or religious association;
b) Cemeteries set apart to inter deceased human beings;
c) The property of a widow or widower who is a state resident;
d) The property of a state resident who is at least 18 years old and has a medically certified
total and permanent disability;
e) The property of an honorably discharged U.S. veteran who has a service or nonservice
connected disability and is a state resident; and
f) Personal property that is used in a trade or business or for agricultural purposes, except
any amount of the full cash value of the personal property that exceeds $220,000. (Sec.
1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HCR 2017
Initials VP/ES Page 2 Caucus & COW
7. Establishes that the Legislature may determine by law the qualifications for, and the amount
of, these exemptions. (Sec. 1)
8. States that a person is not eligible for exemption under more than one category listed. (Sec.
1)
9. States that the Secretary of State shall submit this proposition to voters at the next general
election. (Sec. 1)