ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: WM DP 8-0-1-0

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

HB 2672: property tax; exemption; veterans; disabilities

Sponsor: Representative Carbone, LD 25

House Engrossed

Overview

Fully exempts the property of a veteran with a service connected disability rated at 100% from property tax.

History

Currently, a veteran with a service or nonservice connected disability receives an exemption of $4,188 if the property tax does not exceed $28,459 (A.R.S. § 42-11111).

Disability ratings for veterans are done by The United States Department of Veterans Affairs (VA) to determine the veteran's disability compensation rate and other eligibility benefits. The VA bases the rating on evidence the veteran provides (doctors reports or medical tests), results from the VA's claim exam and information the VA receives from other sources such as federal agencies. VA disability ratings do not exceed 100% and will be calculated as a combined disability rating if the veteran has multiple disability ratings (VA.gov).

Provisions

1.   Creates a property tax exemption for property owned by a veteran with a service connected disability that is rated at 100% which fully exempts the property from taxation and allows the exemption for the surviving spouse of eligible veterans if the property is the surviving spouse's primary residence and the surviving spouse does not remarry. (Sec. 1)

2.   Specifies the property of a veteran with a nonservice connected disability whose disability rating 100% or less or with a service connected disability of less than 100% are exempt in the amount of:

a)   $4,188 for the property of people who are not fully exempt if the individual's total assessment does not exceed $28,459;

b)   reduces the $4,188 limit by multiplying the total exemption by the percentage of the veteran's disability.

3.   States that any veterans pensions are not included in the income from all sources calculation. (Sec. 1)

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

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8.                     HB 2672

9.   Initials VP/DD    Page 0 House Engrossed

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