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AZ SB1542

AZ SB1542
Personal property exemption; money proceeds


summary

Introduced
02/10/2025
In Committee
04/07/2025
Crossed Over
02/27/2025
Passed
Dead
06/27/2025

Introduced Session

Potential new amendment
Fifty-seventh Legislature - First Regular Session (2025)

Bill Summary

AN ACT amending section 33-1126, Arizona Revised Statutes, as amended by proposition 209, election of November 8, 2022; repealing section 33-1126, Arizona Revised Statutes, as amended by laws 2022, chapter 346, section 1; relating to homestead and PERSONAL property exemption.

AI Summary

This bill amends Arizona's personal property exemption law to expand protections for individuals facing financial challenges. The bill adds a new exemption for federal and state income tax credits, specifically earned income tax credits and child tax credits, allowing individuals to protect the lesser of their total tax refunds or the combined amount of these credits from creditors. The law maintains existing exemptions for various types of income and assets, including life insurance proceeds, child support payments, disability benefits, and retirement accounts. The bill also preserves existing protections for specific amounts of money in financial accounts, such as a $5,000 exemption in a single bank account that will be adjusted annually for inflation. Additionally, the bill makes some minor technical language changes, such as updating grammatical constructions and standardizing numeric representations. An important contextual note is that these exemptions are designed to ensure that individuals maintain a basic level of financial security even when facing debt collection or bankruptcy, protecting critical sources of income and financial support.

Committee Categories

Budget and Finance, Business and Industry, Justice

Sponsors (1)

Last Action

House minority caucus: Do pass (on 04/07/2025)

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