ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
veterans’ property tax
exemption
Requests voter approval
during the next general election of a constitutional amendment extending
property tax exemptions to all veterans who meet certain requirements.
The Arizona Constitution
currently provides for a tiered property tax exemption for veterans who meet
very specific residency requirements.
To be eligible for an exemption, a veteran would generally need to have
lived in Arizona prior to September 1, 1945.
Disabled veterans are required to have lived in Arizona for at least
four years prior to entering the service.
However, the courts have found that the residency requirements violate
the U.S. Constitution.
S.C.R. 1003 proposes
amending the Arizona Constitution to remove the tiered exemption structure,
increase the total exemption and reduce residency requirements to one year for
all veterans. S.B. 1188 is being proposed
in conjunction with this resolution to establish the exemptions in statute, and
its effectiveness is contingent on voters approving S.C.R. 1003.
Joint Legislative Budget
Committee staff estimate that S.C.R. 1003 will have an annual impact on the state
general fund ranging between $2.9 million and $5.9 million in FY
2004-2005. Most of the estimated impact
is attributable to an increase in basic state aid to schools, which would need
to increase to offset expected decreases in local property tax bases.
1. Eliminates the tiered property tax exemption for U.S. veterans who have been residents of Arizona prior to September 1, 1945 and served during World War I or prior wars.
2. Eliminates the tiered property tax exemption for U.S. veterans with service-connected disabilities who have been residents of Arizona prior to September 1, 1945 or for at least four years before entering into service.
3. Eliminates the tiered property tax exemption for U.S. veterans with nonservice-connected disabilities who have been residents of Arizona prior to September 1, 1945 and served during a time of war after World War I.
4. Replaces current veterans’ tiered property tax exemptions with a $3,000 property tax exemption for U.S. veterans who served in time of war or military actions who:
(a)
have
lived in Arizona at least one year; and
(b)
whose
total property tax assessment does not exceed $10,000.
5. Specifies that any property whose total assessed value is greater than $10,000 is not eligible for the tax exemption.
6. Limits the total income qualification from all sources (including the claimant, the claimant's spouse and any children who resided with the claimant during the applicable year) to:
a)
$13,200,
if no children under the age of 18 lived in the claimant's residence; or
b)
$18,840,
if at least one child under the age of 18 lived in the claimant's residence, or
if at least one child residing with the claimant was certified as disabled.
7. Specifies that the assessment limit and exemption amount may be adjusted by the Legislature as allowed by the Constitution.
8. Makes technical and conforming changes.
9. Requires the Secretary of State to submit the proposition to voters at the next general election and becomes effective if approved by the voters and on proclamation of the Governor.
Amendments Adopted by Committee of the Whole
1.
Specifies
that any property whose total assessed value is greater than $10,000 is not
eligible for the tax exemption.
2.
Limits
the total income qualification from all sources (including the claimant, the
claimant's spouse and any children who resided with the claimant during the
applicable year) to:
c)
$13,200,
if no children under the age of 18 lived in the claimant's residence; or
d)
$18,840,
if at least one child under the age of 18 lived in the claimant's residence, or
if at least one child residing with the claimant was certified as disabled.
3.
Makes
a conforming change.
Senate Action
FIN 1/28/02 DP 7-1-0-0
3rd Read 4/10/02 20-9-1-0
Prepared by Senate Staff
April 18, 2002