Bill > HB2406

This bill amends Arizona property tax laws to provide a full property tax exemption for combat veterans with a service-connected disability rated at 100% by the United States Department of Veterans Affairs. Currently, veterans with disabilities receive a partial property tax exemption based on their disability percentage and income levels. The bill creates a new, separate category of exemption for these specific combat veterans, allowing them to be completely exempt from property taxes. For other veterans, persons with disabilities, widows, and widowers who do not qualify for the full exemption, the existing partial exemption remains in place, with an exemption of up to $4,188 for those with a total assessment not exceeding $28,459. The bill also requires that the amounts for exemptions and income limits be adjusted annually based on the GDP price deflator. Additionally, the bill modifies how local government entities calculate their property tax levies, specifically prohibiting them from including the amount of the new combat veteran full exemption in their primary property tax calculations. The changes will apply to tax years beginning after December 31, 2025.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/82195