Arizona 2025 Regular Session

Arizona Senate Bill SB1158 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: property tax; exemption; widows; widowers State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1158 Introduced by Senator Gowan AN ACT amending section 42-11111, Arizona Revised Statutes; relating to property tax. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: property tax; exemption; widows; widowers
10	10	State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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14	14	REFERENCE TITLE: property tax; exemption; widows; widowers
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64	64	AN ACT
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68	68	amending section 42-11111, Arizona Revised Statutes; relating to property tax.
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74	74	(TEXT OF BILL BEGINS ON NEXT PAGE)
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78	78	Be it enacted by the Legislature of the State of Arizona: Section 1. Section 42-11111, Arizona Revised Statutes, is amended to read: START_STATUTE42-11111. Exemption for property; widows and widowers; persons with a total and permanent disability; veterans with a disability; definitions A. The property of widows and widowers, of persons with total and permanent disabilities and of veterans with service or nonservice connected disabilities who are residents of this state is exempt from taxation as provided by article IX, section 2, Constitution of Arizona, and subject to the conditions and limits prescribed by this section. B. Pursuant to article IX, section 2, subsection F, Constitution of Arizona, the exemptions from taxation under this section are allowed in the amount of as provided in subsections C and D of this section. C. The property of a widow or widower of a deceased first responder who was killed in the line of duty or who died from injuries suffered in the line of duty is fully exempt from taxation. D. The PROPERTY of a widow or widower who does not qualify for a full exemption under subsection C of this section, a person with a total and permanent disability and a veteran with a service or nonservice connected disability is exempt in the amount of: 1. $4,188 if the person's total assessment does not exceed $28,459. For a veteran with a service or nonservice connected disability, the $4,188 limit under this paragraph is further limited by multiplying the total exemption amount by the percentage of the veteran's disability, as rated by the United States department of veterans affairs. 2. No exemption if the person's total assessment exceeds $28,459. C. E. On or before December 31 of each year, the department shall increase the following amounts based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years: 1. The total allowable exemption amount and the total assessment limit amount under subsection B D of this section. 2. The total income limit amounts under subsection E G, paragraphs 1 and 2 of this section. D. F. For the purpose of determining the amount of the allowable exemption pursuant to subsection B D of this section, the person's total assessment shall not include the value of any vehicle that is taxed under title 28, chapter 16, article 3. E. G. Pursuant to article IX, section 2, subsection F, Constitution of Arizona, to qualify for this the exemption under subsection D of this section, the total income from all sources of the claimant and the claimant's spouse and the income from all sources of all of the claimant's children who resided with the claimant in the claimant's residence in the year immediately preceding the year for which the claimant applies for the exemption shall not exceed: 1. $34,901 if none of the claimant's children under eighteen years of age resided with the claimant in the claimant's residence. 2. $41,870 if one or more of the claimant's children residing with the claimant in the claimant's residence either: (a) Were under eighteen years of age. (b) Had a total and permanent physical or mental disability, as certified by competent medical authority as provided by law. F. H. For the purposes of subsection E G of this section, "income from all sources" means the sum of the following, excluding the items listed in subsection G I of this section: 1. Adjusted gross income as defined by the department. 2. The amount of capital gains excluded from adjusted gross income. 3. Nontaxable strike benefits. 4. Nontaxable interest that is received from the federal government or any of its instrumentalities. 5. Payments that are received from a retirement program and paid by: (a) This state or any of its political subdivisions. (b) The United States through any of its agencies, instrumentalities or programs, except as provided in subsection G I of this section. 6. The gross amount of any pension or annuity that is not otherwise exempted. G. I. Notwithstanding subsection F H of this section, income from all sources does not include monies received from: 1. Cash public assistance and relief. 2. Railroad retirement benefits. 3. Payments under the federal social security act (49 Stat. 620). 4. Payments under the unemployment insurance laws of this state. 5. Payments from veterans disability pensions. 6. Workers' compensation payments. 7. Loss of time insurance. 8. Gifts from nongovernmental sources, surplus foods or other relief in kind supplied by a governmental agency. H. J. A widow or widower, a person with a total and permanent disability or a veteran with a disability shall establish eligibility for exemption under this section by filing an affidavit with the county assessor under section 42-11152 when initially claiming the exemption. Each year thereafter, the person or the person's representative shall annually calculate, if necessary, income from the preceding year to ensure that the person still qualifies for the exemption and notify the county assessor in writing of any event that disqualifies the person from further exemption. Regardless of whether the person or representative notifies the assessor as required by this subsection, the property is subject to tax as provided by law from the date of disqualification, including interest, penalties and proceedings for tax delinquencies. Disqualifying events include: 1. The person's death. 2. The remarriage of a widow or widower. 3. The person's income from all sources exceeding the limits prescribed by subsection E G of this section. 4. The conveyance of title to the property to another owner. I. K. Any dollar amount of exemption that is unused in a tax year against the limited property value of property and improvements owned by the individual may be applied for the tax year against the value of personal property subject to special property taxes, including the taxes collected pursuant to title 5, chapter 3, article 3 and title 28, chapter 16, article 3. J. L. An individual is not entitled to property tax exemptions under more than one category as a widow or widower, a person with a total and permanent disability or a veteran with a disability even if the individual is eligible for an exemption in more than one category. K. M. For the purposes of this section: 1. "Competent medical authority" means any of the following: (a) An individual licensed under title 32, chapter 8, 13, 14, 17, 19.1, 25 or 29 or a comparable law of another state. (b) A registered nurse practitioner as defined in section 32-1601. (c) The United States department of veterans affairs, as evidenced by a disability award letter. 2. "First responder": (a) means either of the following: (i) a law enforcement officer. (ii) a firefighter. (iii) a paramedic as defined in section 36-2201. (b) includes a person who is a volunteer first responder and who is operating in an official capacity on behalf of a government entity that is involved in an emergency or law enforcement response. 2. 3. "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce or its successor for the four quarters of the state fiscal year. 3. 4. "Person with a total and permanent disability" means a person who is unable to engage in any substantial gainful activity, for pay or profit, by reason of any physical or mental impairment that is expected to last for a continuous period of at least twelve months or result in death within twelve months as certified by a competent medical authority. 4. 5. "Veteran" means 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 United States 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 United States public health service. (d) A nurse in the service of the American red cross or in the army and navy nurse corps. (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 United States secretary of veterans affairs. END_STATUTE Sec. 2. Applicability This act applies to tax years beginning from and after December 31, 2025.
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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	82	Section 1. Section 42-11111, Arizona Revised Statutes, is amended to read:
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84	84	START_STATUTE42-11111. Exemption for property; widows and widowers; persons with a total and permanent disability; veterans with a disability; definitions
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86	86	A. The property of widows and widowers, of persons with total and permanent disabilities and of veterans with service or nonservice connected disabilities who are residents of this state is exempt from taxation as provided by article IX, section 2, Constitution of Arizona, and subject to the conditions and limits prescribed by this section.
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88	88	B. Pursuant to article IX, section 2, subsection F, Constitution of Arizona, the exemptions from taxation under this section are allowed in the amount of as provided in subsections C and D of this section.
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90	90	C. The property of a widow or widower of a deceased first responder who was killed in the line of duty or who died from injuries suffered in the line of duty is fully exempt from taxation.
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92	92	D. The PROPERTY of a widow or widower who does not qualify for a full exemption under subsection C of this section, a person with a total and permanent disability and a veteran with a service or nonservice connected disability is exempt in the amount of:
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94	94	1. $4,188 if the person's total assessment does not exceed $28,459. For a veteran with a service or nonservice connected disability, the $4,188 limit under this paragraph is further limited by multiplying the total exemption amount by the percentage of the veteran's disability, as rated by the United States department of veterans affairs.
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96	96	2. No exemption if the person's total assessment exceeds $28,459.
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98	98	C. E. On or before December 31 of each year, the department shall increase the following amounts based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years:
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100	100	1. The total allowable exemption amount and the total assessment limit amount under subsection B D of this section.
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102	102	2. The total income limit amounts under subsection E G, paragraphs 1 and 2 of this section.
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104	104	D. F. For the purpose of determining the amount of the allowable exemption pursuant to subsection B D of this section, the person's total assessment shall not include the value of any vehicle that is taxed under title 28, chapter 16, article 3.
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106	106	E. G. Pursuant to article IX, section 2, subsection F, Constitution of Arizona, to qualify for this the exemption under subsection D of this section, the total income from all sources of the claimant and the claimant's spouse and the income from all sources of all of the claimant's children who resided with the claimant in the claimant's residence in the year immediately preceding the year for which the claimant applies for the exemption shall not exceed:
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108	108	1. $34,901 if none of the claimant's children under eighteen years of age resided with the claimant in the claimant's residence.
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110	110	2. $41,870 if one or more of the claimant's children residing with the claimant in the claimant's residence either:
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112	112	(a) Were under eighteen years of age.
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114	114	(b) Had a total and permanent physical or mental disability, as certified by competent medical authority as provided by law.
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116	116	F. H. For the purposes of subsection E G of this section, "income from all sources" means the sum of the following, excluding the items listed in subsection G I of this section:
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118	118	1. Adjusted gross income as defined by the department.
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120	120	2. The amount of capital gains excluded from adjusted gross income.
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122	122	3. Nontaxable strike benefits.
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124	124	4. Nontaxable interest that is received from the federal government or any of its instrumentalities.
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126	126	5. Payments that are received from a retirement program and paid by:
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128	128	(a) This state or any of its political subdivisions.
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130	130	(b) The United States through any of its agencies, instrumentalities or programs, except as provided in subsection G I of this section.
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132	132	6. The gross amount of any pension or annuity that is not otherwise exempted.
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134	134	G. I. Notwithstanding subsection F H of this section, income from all sources does not include monies received from:
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136	136	1. Cash public assistance and relief.
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138	138	2. Railroad retirement benefits.
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140	140	3. Payments under the federal social security act (49 Stat. 620).
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142	142	4. Payments under the unemployment insurance laws of this state.
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144	144	5. Payments from veterans disability pensions.
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146	146	6. Workers' compensation payments.
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148	148	7. Loss of time insurance.
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150	150	8. Gifts from nongovernmental sources, surplus foods or other relief in kind supplied by a governmental agency.
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152	152	H. J. A widow or widower, a person with a total and permanent disability or a veteran with a disability shall establish eligibility for exemption under this section by filing an affidavit with the county assessor under section 42-11152 when initially claiming the exemption. Each year thereafter, the person or the person's representative shall annually calculate, if necessary, income from the preceding year to ensure that the person still qualifies for the exemption and notify the county assessor in writing of any event that disqualifies the person from further exemption. Regardless of whether the person or representative notifies the assessor as required by this subsection, the property is subject to tax as provided by law from the date of disqualification, including interest, penalties and proceedings for tax delinquencies. Disqualifying events include:
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154	154	1. The person's death.
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156	156	2. The remarriage of a widow or widower.
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158	158	3. The person's income from all sources exceeding the limits prescribed by subsection E G of this section.
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160	160	4. The conveyance of title to the property to another owner.
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162	162	I. K. Any dollar amount of exemption that is unused in a tax year against the limited property value of property and improvements owned by the individual may be applied for the tax year against the value of personal property subject to special property taxes, including the taxes collected pursuant to title 5, chapter 3, article 3 and title 28, chapter 16, article 3.
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164	164	J. L. An individual is not entitled to property tax exemptions under more than one category as a widow or widower, a person with a total and permanent disability or a veteran with a disability even if the individual is eligible for an exemption in more than one category.
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166	166	K. M. For the purposes of this section:
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168	168	1. "Competent medical authority" means any of the following:
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170	170	(a) An individual licensed under title 32, chapter 8, 13, 14, 17, 19.1, 25 or 29 or a comparable law of another state.
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172	172	(b) A registered nurse practitioner as defined in section 32-1601.
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174	174	(c) The United States department of veterans affairs, as evidenced by a disability award letter.
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176	176	2. "First responder":
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178	178	(a) means either of the following:
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180	180	(i) a law enforcement officer.
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182	182	(ii) a firefighter.
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184	184	(iii) a paramedic as defined in section 36-2201.
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186	186	(b) includes a person who is a volunteer first responder and who is operating in an official capacity on behalf of a government entity that is involved in an emergency or law enforcement response.
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188	188	2. 3. "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce or its successor for the four quarters of the state fiscal year.
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190	190	3. 4. "Person with a total and permanent disability" means a person who is unable to engage in any substantial gainful activity, for pay or profit, by reason of any physical or mental impairment that is expected to last for a continuous period of at least twelve months or result in death within twelve months as certified by a competent medical authority.
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192	192	4. 5. "Veteran" means 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:
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194	194	(a) All regular, reserve and national guard components of the United States army, navy, air force, marine corps and coast guard.
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196	196	(b) The commissioned corps of the national oceanic and atmospheric administration.
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198	198	(c) The commissioned corps of the United States public health service.
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200	200	(d) A nurse in the service of the American red cross or in the army and navy nurse corps.
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202	202	(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 United States secretary of veterans affairs. END_STATUTE
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204	204	Sec. 2. Applicability
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206	206	This act applies to tax years beginning from and after December 31, 2025.