WeVote
Log In

Bill

Bill

HCR 2023

property tax; combat veterans; exemption

57th Legislature - First Regular Session Introduced by Alex Kolodin

Provides a full property tax exemption for combat veterans with 100% VA combat-related disability; preserves partial exemptions for others.

DP
0
WeVote Research Nonpartisan
Bill Summary · HCR 2023

Summary — HCR 2023 (2025)

Title: property tax; combat veterans; exemption
Sponsor: Rep. Alexander Kolodin
Classification: Concurrent resolution (places an act before voters)
Introduced: Jan 27, 2025 — House passed Feb 26, 2025; transmitted to Senate; Senate readings Mar 12–13, 2025; DP Mar 17, 2025

Purpose

To amend Arizona property tax law to (1) provide a full property tax exemption for combat veterans who have a 100% service‑connected, combat‑related disability as rated by the U.S. Department of Veterans Affairs (VA), and (2) retain and revise existing exemptions and thresholds for widows/widowers, persons with total and permanent disabilities, and other veterans with disabilities.

This measure is a concurrent resolution enacting a statute that will take effect only if approved by voters (referendum power) and proclaimed by the Governor.

Key provisions

  • Adds a new full exemption:
    • Property of a combat veteran with a service‑connected disability that is combat‑related and rated 100% by the VA is fully exempt from property taxation (new subsection C).
  • Retains an existing limited exemption for other eligible claimants:
    • A partial exemption of $4,188 applies if the claimant’s total assessment does not exceed $28,459.
    • No exemption if total assessment exceeds $28,459.
    • For veterans who do not qualify for the full (100%) exemption, the $4,188 exemption is prorated by the veteran’s VA disability percentage.
  • Annual inflation adjustment:
    • On or before December 31 each year, the Department (presumably Department of Revenue) must increase the exemption and assessment limit amounts and the income eligibility limits based on the average annual percentage increase in the GDP price deflator for the two most recent complete state fiscal years.
  • Income eligibility (for the partial exemption):
    • Total income limits (claimant, spouse, and resident children’s income for the prior year):
    • $34,901 if no resident child under 18.
    • $41,870 if one or more resident children under 18 or a resident child with a total/permanent disability.
  • Administrative and definitional rules:
    • Total assessment excludes value of vehicles taxed under Title 28 (motor vehicle taxes).
    • Eligibility initially established by affidavit filed with the county assessor; claimants must annually verify income as needed and report disqualifying events (death, remarriage, income exceeding limits, conveyance of title).
    • Unused exemption dollar amounts may be applied to certain personal property special taxes.
    • Clarifies definitions (e.g., “competent medical authority,” “GDP price deflator”).

Who is affected

  • Directly benefits: combat veterans with a 100% VA rating for combat‑related, service‑connected disabilities (full property tax exemption); other veterans with disabilities, widows/widowers, and persons with total/permanent disabilities remain eligible for limited exemptions subject to assessment and income limits.
  • Indirectly affected: county assessors (administration/verification), Department responsible for annual inflation adjustments, and local taxing jurisdictions (potential revenue effects).

Procedural / timeline notes

  • HCR 2023 is a constitutional/legislative referral placed before voters: it becomes law only if approved by Arizona voters and proclaimed by the Governor.
  • Legislative progress in 2025: introduced Jan 27; House passed Feb 26; transmitted to Senate; Senate readings Mar 12–13; DP recorded Mar 17.

Potential fiscal/operational impact (not estimated in bill text)

  • Likely reduces property tax revenue collected from qualifying combat veterans and may shift burden among local taxing entities.
  • Requires administrative processes for verification of VA combat‑related 100% ratings and annual indexing by the Department.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.