ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: WM DP 5-4-0-0

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

HCR 2023: property tax; combat veterans; exemption

Sponsor: Representative Kolodin, LD 3

Caucus & COW

Overview

Grants a complete exemption from property tax to combat veterans with a service connected disability which is combat related and is rated as 100% by The United States Department of Veterans Affairs (VA).

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 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.   Makes the property of a combat veteran with a service connected disability which is combat related and is rated as 100% by the VA fully exempt from taxation. (Sec. 1)

2.   Specifies the property of widows, widowers, persons with a permanent disability and veterans with a service or nonservice connected disability 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.

c) imposes an income limit to qualify for the exemption. (Sec. 1)

3.   Mandates that the amount of tax raised from primary taxes cannot include an amount to offset the aggregate amount of exemptions for combat veterans with a service connected disability which is combat related and is rated as 100% by the VA. (Sec. 2)

4.   Contains an applicability clause. (Sec. 3)

5.   Requires the Secretary of State to submit this proposition to the voters at the next general election. (Sec. 3)

6.   Makes conforming changes. (Sec. 1)

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10.                    HCR 2023

11.  Initials VP/DD    Page 0 Caucus & COW

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