ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: MAPS DP 14-0-0-0-1

HCR 2027: property tax; exemption; disability; veterans

Sponsor: Representative Payne, LD 21

Caucus & COW

Overview

Subject to voter approval, amends the Constitution of Arizona to grant disabled veterans an exemption from property taxes on their primary residential homestead.

History

Article IX of the Arizona State Constitution provides that all property taxes must be uniform upon the same class of property and that no property is exempt from property tax unless specified in the Constitution.

The Constitution currently grants a limited property tax exemption for any Arizona veteran and provides an additional exemption for a disabled veteran. However, in Benjamin v. Arizona Department of Revenue, (163 Ariz. 182 (1989)), the Arizona Court of Appeals held that the veteran’s property tax exemption was unconstitutional because it imposed an Arizona residency requirement that violated the 14th Amendment to the U.S. Constitution; further, the court concluded that the residency requirement for veterans was integral in purpose to the provision and thus could not be severed. Thereafter, the exemption for military veterans was deemed unenforceable and of no effect.

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteProvisions

1.   Exempts the primary residential homestead owned by a veteran from taxation if that veteran has a 100% disability rating from the U.S. Department of Veterans Affairs. (Sec. 2)

2.   Specifies that the disability must be service-connected. (Sec. 2)

3.   States that property conveyed to a veteran for the purpose of evading taxation is not exempt. (Sec. 2)

4.   Asserts that the property tax exemption granted to disabled veterans is not subject to any income limits. (Sec. 2)

5.   Repeals current statute exempting qualifyed veterans from specified amounts of property taxes. (Sec. 1)

6.   Defines veteran. (Sec. 2)

7.   Applies the property tax exemption beginning in tax year 2023. (Sec. 3)

8.   Requires the Secretary of State to submit the proposition to the voters at the next election. (Sec. 4)

9.   Becomes effective if approved by the voters and on proclamation of the Governor. (Sec. 1, 2)

10.  Makes technical and conforming changes. (Sec. 1)

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14.                    HCR 2027

15.  Initials FK/NM       Page 0 Caucus & COW

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