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REFERENCE TITLE: personal property; tax exemption; index |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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SB 1367 |
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Introduced by Senators Yarbrough: McComish
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AN ACT
Amending section 42-11127, Arizona Revised Statutes; relating to tax exempt personal property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-11127, Arizona Revised Statutes, is amended to read:
42-11127. Exempt personal property
A. Pursuant to article IX, section 2, subsection (6), Constitution of Arizona, personal property that is class two property pursuant to section 42‑12002, paragraph 2, subdivision (a) or (b) that is used for agricultural purposes or personal property that is class one property pursuant to section 42‑12001 that is used in a trade or business as described in section 42‑12001, paragraphs 8 through 11 or 13 is exempt from taxation up to a maximum amount of fifty thousand dollars of full cash value for each taxpayer.
B. On or before December 31 of each year through 2010, the department shall increase the maximum amount of the exemption for the following tax year through 2011 based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years. For the purposes of this subsection, "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.
C. B. On or before December 31 of each year beginning in 2011, the department shall increase the maximum amount of the exemption for the following tax year beginning in 2012 based on the average annual percentage increase, if any, in the employment cost index in the two most recent complete state fiscal years. For the purposes of this subsection, "employment cost index" means the average of the four employment cost indices reported by the bureau of labor statistics of the United States department of labor or its successor for the four quarters of the state fiscal year.
Sec. 2. Legislative intent
It is the intent of the legislature that for tax years beginning from and after December 31, 2012 the department of revenue recalculate the exempt amount of personal property authorized pursuant to section 42-11127, subsection B, Arizona Revised Statutes, as amended by this act, as if the amendment had been continuously in effect since 1997. This act does not apply to any tax year before tax year 2013.