SB 1069
Initials VP/DD Page 1 Ways & Means
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: FIN DP 6-1-0-0 | 3rd Read 17-9-4-0
SB 1069: personal property exemption; increase
Sponsor: Senator Mesnard, LD 13
Committee on Ways & Means
Overview
Increases the business personal property exemption to $500,000 of full cash value for each
taxpayer effective January 1, 2026.
History
Currently personal property that is a class 2 property that is used for agricultural purposes
and personal property that is a class 1 property that is used in a trade or business is exempt
from taxation up to $207,366 of full cash value for each taxpayer (A.R.S. § 42-11127). The
Department of Revenue annually adjusts the exemption amount for the following tax year
(TY) to account for inflation and for TY 2025, the exemption is $269,905 (Ariz. Const. art. 9,
§ 2; A.R.S. § 42-15002)
Provisions
1. Increases the maximum exemption from personal property taxation for personal property
classified as class 2 property used for agricultural purposes or class one property used in
a trade or business to $500,000 of full cash value for each taxpayer. (Sec. 1)
2. Contains a delayed effective date. (Sec. 2)
3. Makes technical changes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note