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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
personal property exemptions; vehicles
Purpose
Adds, to the property types that qualify for the $400,000 homestead exemption, park model trailers, motor homes, travel trailers, fifth wheel trailers, houseboats and other forms of shelter in which a person resides, plus the land on which the shelter is located.
Background
Arizona’s homestead exemption exempts up to $400,000 of a person’s equity in their dwelling from attachment, execution or forced sale. The exemption applies to a person’s house and land, condominium or cooperative, mobile home or mobile home and land. A person or married couple may only claim one homestead exemption and must reside in the home for which the exemption is claimed. The homestead exemption is annually adjusted by the increase in the cost of living.
The homestead exemption automatically attaches to a person's interest in identifiable cash proceeds from the voluntary or involuntary sale of the property, which continues for 18 months after the date of the sale or until the person establishes a new homestead with the proceeds. The homestead exemption does not attach to the person's interest in identifiable cash proceeds from refinancing the homestead property. For purposes of determining equity in a sold homestead property or determining if a property owner is receiving cash back from refinancing, the parties may rely on the property value in the final closing document disclosure (A.R.S. § 33-1101).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Adds park model trailers, motor homes, travel trailers, fifth wheel trailers, houseboats and other forms of shelter in which a person resides, plus the land, to the property types that qualify for the homestead exemption.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 6, 2025
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