REFERENCE TITLE: business personal property; tax exemption

State of Arizona

Senate

Fifty-sixth Legislature

First Regular Session

2023

SB 1263

Introduced by

Senators Mesnard: Bennett, Borrelli, Carroll, Farnsworth, Gowan, Hoffman, Kaiser, Kavanagh, Kern, Kerr, Petersen, Rogers, Shamp, Shope, Wadsack

An Act

amending sections 42-11127 and 42-15002, Arizona Revised Statutes; relating to property tax exemptions.

(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:

START_STATUTE42-11127. Exempt personal property

A. Pursuant to article IX, section 2, subsection F, Constitution of Arizona, personal property that is class two property pursuant to section 42-12002, paragraph 2, subdivision (a) or (b) and that is used for agricultural purposes or personal property that is class one property pursuant to section 42-12001 and 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 $207,366 of full cash value for each taxpayer.

B. On or before December 31 of each year, the department shall increase the maximum amount of the exemption for the following tax year based on the percentage increase, if any, in the employment cost index for total compensation for private industry workers in the two most recent complete state fiscal years. For the purposes of this subsection, "employment cost index" means the average of the employment cost indices reported by the bureau of labor statistics of the United States department of labor or its successor for the eight quarters of the two most recent state fiscal years.END_STATUTE

Sec. 2. Section 42-15002, Arizona Revised Statutes, is amended to read:

START_STATUTE42-15002. Assessed valuation of class two property

The following percentages apply to the full cash value or limited valuation, as applicable, as a basis for determining the assessed valuation of class two property described in section 42-12002:

1. Class two (R): sixteen percent through December 31, 2015 and fifteen percent beginning from and after December 31, 2015.

2. Class two (P): sixteen percent through December 31, 2015, and fifteen percent beginning from and after December 31, 2015, of the value exceeding the maximum amount of valuation of personal property that is exempt from taxation pursuant to section 42-11127.

3. 2. Class two (C): fifteen percent. END_STATUTE

Sec. 3. Applicability

This act applies to tax years beginning from and after December 31, 2023.