HCR 2027
Initials FK/NM Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: MAPS DP 14-0-0-0-1
HCR 2027: property tax; exemption; disability; veterans
Sponsor: Representative Payne, LD 21
Caucus & COW
Overview
Subject to voter approval, amends the Constitution of Arizona to grant disabled veterans an
exemption from property taxes on their primary residential homestead.
History
Article IX of the Arizona State Constitution provides that all property taxes must be uniform upon
the same class of property and that no property is exempt from property tax unless specified in
the Constitution.
The Constitution currently grants a limited property tax exemption for any Arizona veteran and
provides an additional exemption for a disabled veteran. However, in Benjamin v. Arizona
Department of Revenue, (163 Ariz. 182 (1989)), the Arizona Court of Appeals held that the
veteran’s property tax exemption was unconstitutional because it imposed an Arizona residency
requirement that violated the 14th Amendment to the U.S. Constitution; further, the court
concluded that the residency requirement for veterans was integral in purpose to the provision
and thus could not be severed. Thereafter, the exemption for military veterans was deemed
unenforceable and of no effect.
Provisions
1. Exempts the primary residential homestead owned by a veteran from taxation if that veteran
has a 100% disability rating from the U.S. Department of Veterans Affairs. (Sec. 2)
2. Specifies that the disability must be service-connected. (Sec. 2)
3. States that property conveyed to a veteran for the purpose of evading taxation is not exempt.
(Sec. 2)
4. Asserts that the property tax exemption granted to disabled veterans is not subject to any
income limits. (Sec. 2)
5. Repeals current statute exempting qualifyed veterans from specified amounts of property
taxes. (Sec. 1)
6. Defines veteran. (Sec. 2)
7. Applies the property tax exemption beginning in tax year 2023. (Sec. 3)
8. Requires the Secretary of State to submit the proposition to the voters at the next election.
(Sec. 4)
9. Becomes effective if approved by the voters and on proclamation of the Governor. (Sec. 1, 2)
10. Makes technical and conforming changes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note