Assigned to FIN & APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
REVISED
FACT SHEET FOR S.C.R. 1009
property tax exemption; veterans; disabilities
Purpose
Subject to voter approval, constitutionally exempts the property of a veteran with a
service-connected disability, the veteran's spouse or the unmarried surviving spouse of a veteran
with a service-connected disability from property tax in an amount authorized by statute.
Background
The property of Arizona residents who are honorably discharged veterans with a service or
nonservice-connected disability, is exempt from taxation to the extent allowed by the Arizona
Constitution and subject to the conditions and limitations prescribed by statute (Ariz. Const. art. 9 § 2
and A.R.S. § 42-11111).
In Benjamin v. Arizona Department of Revenue, 163 Ariz. 182 (App. 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.
The Joint Legislative Budget Committee fiscal note estimates, beginning in FY 2024, a net
state General Fund cost of $11.3 million, which could be offset by savings under the automatic
school tax rate adjustments provided by under the state’s Truth-in-Taxation provisions resulting
in a net savings of $5.4 million (JLBC fiscal note).
Provisions
1. Exempts the primary residence of a veteran or the veteran's spouse from property tax, if the
veteran:
a) has a service-connected disability of 100 percent, as rated by the U.S. Department of
Veterans Affairs, that is a result of an injury or disease; or
b) is legally blind.
2. Exempts the primary residence of the unmarried surviving spouse of a veteran from property
tax, if the veteran:
a) had a service-connected disability of 100 percent, as rated by the U.S. Department of
Veterans Affairs, that was a result of an injury or disease; or
b) was legally blind.
3. Exempts the primary residence of a veteran who has a disability of 10 percent or greater, as
rated by the U.S. Department of Veterans Affairs, that was a result of an injury or disease
incurred in military service from property tax in the amount of $5,000 of the total assessment
or the entire amount, if the total assessment is less than $5,000. FACT SHEET - Revised
S.C.R. 1009
Page 2
4. Prohibits another real property tax exemption from being granted for the same residence,
unless two or more veterans with a disability reside in, and are co-owners of, the property
which entitles each veteran to the exemption to the extent of the respective ownership interest.
5. Exempts a veteran's property tax exemption from the statutory income limits.
6. Stipulates that a granted property tax exemption is in lieu of any other real property tax
exemption to which a claimant may be entitled.
7. Defines veteran as an individual who has served in, and been discharged, separated or released
under honorable conditions from, active or inactive service in the uniformed services of the
United States, including:
a) all regular, reserve and national guard components of the U.S. Army, Navy, Air Force,
Marine Corps and Coast Guard;
b) the commissioned corps of the National Oceanic and Atmospheric Administration;
c) the commissioned corps of the U.S. Public Health Service;
d) a nurse in the service of the American Red Cross or in the Army and Navy Nurse Corps; and
e) any other civilian service that is authorized by federal law to be considered active military
duty for the purpose of laws administered by the U.S. Secretary of Veterans Affairs.
8. Specifies that property conveyed to a veteran with a disability or the veteran's spouse to evade
taxation is not exempt from property tax.
9. Repeals the property tax exemption for an Arizona resident who is an honorably discharged
veteran.
10. Removes the requirement that a property tax exemption for an honorably discharged member
of the U.S. uniformed services with a service-connected disability be available only if the
veteran was an Arizona resident prior to September 1, 1945, or had been an Arizona resident
for at least four years prior to their original entry into military service.
11. Removes the requirement that a property tax exemption for an honorably discharged member
of the U.S. uniformed services with a nonservice-connected disability be available only if the
veteran served at least 60 days during time of war after World War I and had been an Arizona
resident prior to September 1, 1945.
12. Makes technical and conforming changes.
13. Requires the Secretary of State to submit the proposition to the voters at the next general election.
14. Becomes effective if approved by the voters and on proclamation of the Governor.
Revisions
• Corrects the fiscal impact statement.
FACT SHEET - Revised
S.C.R. 1009
Page 3
Senate Action
FIN 2/16/22 DP 8-2-0
APPROP 2/22/22 DP 10-0-0
Prepared by Senate Research
February 23, 2022
MG/slp