SB 1095
Initials ES/VP/NM Page 1 Transmitted
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
Senate: FIN DP 9-0-1-0 | 3
rd
Read 27-0-3-0
House: WM DP 9-1-0-0 | 3
rd
Read 57-0-3-0
Final Pass: 26-0-4-0
SB 1095: property tax exemptions; statutory conformity
Sponsor: Senator Mesnard, LD 17
Transmitted to Governor
Overview
Establishes that property belonging to resident veterans with a service or nonservice connected
disability is exempt from taxation. Updates property tax exemption amounts and household
income limits. Conditions the enactment of this legislation on voter approval of SCR 1011 to
amend the constitution, consolidating and reorganizing provisions related to property tax.
History
Property belonging to widows and widowers, persons with disabilities and honorably discharged
veterans with a service or nonservice connected disability is exempt from property tax to the
amounts allowed by the state Constitution. Widows, widowers and persons with disabilities are
entitled to an exemption of $3,000, so long as the person's total assessment does not exceed
$20,000 (A.R.S. § 42-11111).
The Legislature may exempt personal property used for agricultural purposes or in trade or
business to the amount of $50,000 of full cash value (Arizona Constitution art. IX, § 2; A.R.S. §
42-11127).
Provisions
1. Establishes that property belonging to veterans, who are residents, with service or nonservice
connected disabilities is exempt from taxation as provided in the State Constitution. (Sec. 2)
2. Exempts property belonging to widows and widowers, persons with total and permanent
disabilities and veterans with service or nonservice connected disabilities to the amount of
$4,188, so long as the person's total assessment does not exceed $28,459. (Sec. 2)
3. Limits the $4,118 exemption for veterans with service or nonservice connected disabilities by
multiplying the total exemption amount by the percentage of the veterans' disability, as rated
by the U.S. Department of Veterans Affairs. (Sec. 2)
4. Updates the household income limits to:
a) $34,901 if none of the claimant's children lived in the claimant's residence; and
b) $41,870 if the claimant's child residing in the claimant's residence was under 18 years old
or had a total and permanent disability. (Sec. 2)
5. States that veterans with a service or nonservice connected disability must initially file an
affidavit with the county assessor to establish eligibility for this exemption and must notify the
county assessor in writing if any event disqualifies them from this exemption. (Sec. 2)
6. Defines GDP price deflator and veteran. (Sec. 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note SB 1095
Initials ES/VP/NM Page 2 Transmitted
7. Establishes that the maximum amount exempted for personal property used for agricultural
purposes and in a trade or business is $207,366 of full cash value. (Sec. 3)
8. Conditions the enactment of this legislation on an amendment of the constitution by the vote
of the people in the next general election, consolidating and reorganizing provisions related
to property tax. (Sec. 6)
9. Makes technical and conforming changes. (Sec. 1, 2, 3, 4, 5)