ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

FACT SHEET FOR h.b. 2064

property tax exemption; disability; qualifications

Purpose

Defines person with a total and permanent disability and competent medical authority for the purposes of property tax exemptions for widows, widowers, persons with a total and permanent disability and veterans with a disability.

Background

All property in Arizona is subject to taxation with certain exemptions outlined in the Arizona Constitution and prescribed by statute. The property of Arizona residents who are widows, widowers, persons with total and permanent disabilities or veterans with service or
nonservice-connected disabilities are exempt from property tax subject to the conditions and limitations prescribed by statute. The exemption amount is: 1) $4,188, if the person's total assessment does not exceed $28,459; or 2) no exemption if the person's total assessment exceeds $28,459. To qualify for a property tax exemption, a claimant's total income is subject to a statutory cap which is adjusted annually for inflation. A widow, widower, person with a total and permanent disability or veteran with a service or non-service connected disability must initially establish eligibility for the property tax exemption by filing an affidavit with the county assessor. The affidavit includes a certification of the person's disability which must be signed by a physician or psychiatrist (A.R.S. §§ 42-11002; 42-11111; ADOR).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Defines person with a total and permanent disability as a person who is unable to engage in any substantial gainful activity, for pay or profit, by reason of any physical or mental impairment that is expected to last for a continuous period of at least 12 months or result in death within 12 months as certified by a competent medical authority.

2. Defines competent medical authority as:

a) an individual licensed in Arizona in chiropractic care, medicine and surgery, naturopathic medicine, osteopathic care, psychology or as a physician assistant or a homeopathic physician or licensed under the comparable law of another state;

b) a registered nurse practitioner; or

c) the U.S. Department of Veterans Affairs, as evidenced by a disability award letter.

3. Makes technical and conforming changes.

4. Becomes effective on the general effective date.

House Action

WM 1/25/23 DP 9-1-0-0

3^rd Read 2/21/23 60-0-0

Prepared by Senate Research

March 2, 2023

MG/ZS/sr