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REFERENCE TITLE: residential property tax; deferral |
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State of Arizona Senate Fifty-fifth Legislature First Regular Session 2021
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SB 1491 |
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Introduced by Senator Shope
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AN ACT
amending sections 42-17302, 42-17303, 42-17304 and 42-17313, Arizona Revised Statutes; relating to residential property tax deferral.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-17302, Arizona Revised Statutes, is amended to read:
42-17302. Election to defer residential property taxes; qualifications
A. An individual who meets the qualifications prescribed by this section, or the individual's legal representative, may elect to defer property taxes on the individual's qualifying residence for a taxable year pursuant to this article.
B. To qualify for the deferral, the individual shall meet all of the following requirements:
1. The individual shall be at least seventy sixty-five years of age or have a total and permanent disability exempting the individual's property from tax under section 42-11111 on the date the deferral claim form is filed.
2. The individual, either individually or with another individual who resides in the residence, shall own the residence or be purchasing the residence under a recorded instrument of sale or shall hold the property under the terms of a real estate trust.
3. The individual must either:
(a) Have lived in the current residence for at least six years immediately preceding the date the deferral claim form is filed.
(b) Have lived in this state for at least ten years immediately preceding the date the deferral claim form is filed.
4. The individual may not own or have any legal, equitable, beneficial or security interest in any other residence or other real property, wherever it may be located, except indirectly through an investment security, such as a mutual fund, that includes real property among its assets.
C. In the case of a married couple, both spouses shall:
1. Meet the requirements prescribed by subsection B of this section.
2. Consent to the deferral of taxes, regardless of whether both spouses have an ownership interest in the residence.
D. In addition to the requirements prescribed by subsections B and C of this section, the total taxable income of all persons residing in the residence for the taxable year immediately preceding the current year may not exceed ten thousand dollars $20,000, except for cost-of-living increases that follow federal social security cost-of-living adjustment increases.
Sec. 2. Section 42-17303, Arizona Revised Statutes, is amended to read:
42-17303. Property entitled to tax deferral
To qualify for deferral of property taxes, the residence shall meet all of the following requirements:
1. It must be the taxpayer's primary residence.
2. It must not be income producing.
3. It may not have a full cash value, as determined by the county assessor for the current tax year, of more than one hundred fifty thousand dollars $150,000 or seventy-five percent of the median full cash value of the county in which the residence is located, whichever is greater.
4. It may not be subject to the lien of any mortgage, reverse mortgage, deed of trust or other real property security interest that has been of record for less than five years before the date the deferral claim form is filed.
5. All property taxes must be paid for years preceding the year for which the initial election is made.
Sec. 3. Section 42-17304, Arizona Revised Statutes, is amended to read:
42-17304. Deferral claim
A. The claim for deferral shall be on a form that is prescribed by the state treasurer and that provides an explanation of the requirements of this article and instructions for completing and filing the claim. The claim shall:
1. Identify the residence by street address and tax parcel number.
2. Recite the facts establishing the individual's and residence's eligibility for deferral, including all mortgages, reverse mortgages, deeds of trust and other security interests that constitute current liens on the residence with the year or years they were recorded.
3. State the maximum amount of taxes that can be deferred on the residence. The cumulative amount of deferred taxes and interest that attaches to a tax deferred residence under this article, plus any amounts secured by mortgages, reverse mortgages, deeds of trust and other real property security interest with respect to the residence, may not exceed ninety per cent percent of the full cash value of the residence determined by the county assessor for the tax year.
4. State the total taxable income of all persons residing in the residence for the taxable year immediately preceding the current year. The taxpayer shall attach a copy of the state income tax return filed by each person who resided in the residence during the preceding taxable year. If any person residing in the residence was not required to file a state income tax return under title 43 for the preceding taxable year, the taxpayer shall certify that the total taxable income of all persons residing in the residence for the taxable year immediately preceding the current year does did not exceed ten thousand dollars $20,000, except for cost-of-living increases that follow federal social security cost-of-living adjustment increases.
B. In addition to the claim form, the taxpayer shall submit copies of all relevant documentation that is necessary to establish eligibility for the deferral.
C. The taxpayer shall sign the claim form under penalty of perjury.
Sec. 4. Section 42-17313, Arizona Revised Statutes, is amended to read:
42-17313. County treasurers; county assessors; state treasurer; reporting requirements
A. Not later than September august 1 of each year, the state each county treasurer shall compile a report containing provide the following information to the state treasurer:
1. The number of deferral claims received in each county that year.
2. 1. The number of claims finally approved in each the county for deferral that year.
3. 2. The total assessed valuation of tax deferred residences in each the county as of July 1 of the current year.
4. 3. The amount of taxes that was deferred on the current tax roll in each the county.
B. Not later than August 1 of each year, each county assessor shall provide the number of deferral claims received in the county that year to the state treasurer.
C. Not later than September 1 of each year, the state treasurer shall compile a report of the information received from each county treasurer and each county assessor pursuant to this section.