ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: WM DPA 5-4-0-0

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

HB 2389: business personal property; exemption.

Sponsor: Representative Carter N, LD 15

Caucus & COW

Overview

Exempts locally assessed business personal property from property taxation beginning January 1, 2026.

History

The Legislature may determine by law the qualifications and exemption amounts for property (Ariz. Const. Art. 9 § 2).

The following personal properties are given a $269,905 business personal property tax exemption: 1) properties used for agricultural purposes; 2) properties primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium; 3) shopping centers; 4) golf courses; 5) manufacturers, assemblers or fabricators; 6) properties used in communications transmission facilities and that provides public telephone or telecommunications exchange or interexchange access for compensation to effect two-way communication to, from, through or within Arizona; and 7) properties devoted to any other commercial or industrial use, other than properties specifically included in other classifications.

Provisions

1.   Exempts locally assessed business personal property. (Sec. 7, 8, 9, 10, 11, 12, 18, 19, 20)

2.   Repeals statutes related to the taxable value of personal property, reducing the minimum value for property in use and the taxable value of solar energy devices classified as personal property. (Sec. 15)

3.   Specifies that this Act applies to tax years beginning January 1, 2026.

4.   Makes technical and conforming changes. (Sec. 1, 2, 3, 4, 5, 6, 13, 14, 16, 17)

Amendments

Committee on Ways & Means

1.   Maintains personal property comprising an environmental technology manufacturing producing or processing facility as class six property. (Sec. 11)

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5.                     HB 2389

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