ARIZONA HOUSE OF REPRESENTATIVES FIRST REGULAR SESSION - 1999

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__X__ For Committee on WAYS AND MEANS

_____ For Committee on ______________________________________

_____ For Caucus and COW

_____ As Passed the House

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Abstract for HB 2636 (limited property tax increase; elderly) Sponsor: McGibbon, Overton

Overview:

HB 2636 provides that primary property taxes levied against owner-occupied residential property of an individual who is at least sixty-five years of age can not increase more than the increase in the GDP price deflator in any given year.

Provisions:

Provides that property taxes on owner-occupied residential property can not exceed the increase in the GDP price deflator in any given year if the following apply:

a) The taxpayer is 65 years or age or older.

b) The taxpayer must own the residence or be purchaisng the residence.

c) The taxpayer must have lived in the current residence for at least ten years, immediately preceding the current tax year.

d) The taxpayer is claiming the reduction on their principal place of residency.

e) The residence is not income producing

f) The residence is not subject to any lien of any mortgage or other real property security interest.

All property taxes on the property must be paid or deferred for years preceding the current tax year for the taxpayer to qualify for the reduction.

The Department of Revenue shall develop an application for the reduced property taxes. The application shall require information from the taxpayer including identifying the residence by street address and tax parcel number, reciting the facts establishing the taxpayer's eligibility, and the list of property taxes assessed on the property for the preceding tax year.

The taxpayer shall file the application with the county treasurer. The county treasurer shall review the application and make a determination on the application within 10 days. The taxpayer may appeal the treasurer's decision if the treasurer denies the application.

If an application is approved, the treasurer shall compute the maximum allowable increase in taxes as follows:

a) Determine the total increase in primary property tax for all taxing jurisdictions over the total levy from the year before.

b) Increase the total amount of property tax levied on the residence in the preceding tax year by the percentage increase to the GDP price deflator.

c) If the current primary property tax levy is greater than the property tax levied with a percentage increase to the GDP price deflator, the property tax shall be reduced on that residence to the increase in the GDP price deflator.

The treasurer shall issue a certificate of reduction for each residence whose property taxes are reduced. If the taxpayer asks for a deferral or property tax, the deferral is in lieu of a reduction in property taxes.

Prepared by: Melodie Jones, Ian Douglas

hb2636.wm 2/8/99 bh

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