Bill Text: AZ SCR1018 | 2016 | Fifty-second Legislature 2nd Regular | Introduced
Bill Title: Veterans; disability; property tax relief
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-02-02 - Referred to Senate FIN Committee [SCR1018 Detail]
Download: Arizona-2016-SCR1018-Introduced.html
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REFERENCE TITLE: veterans; disability; property tax relief |
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State of Arizona Senate Fifty-second Legislature Second Regular Session 2016
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SCR 1018 |
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Introduced by Senator Griffin
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A CONCURRENT RESOLUTION
Proposing an amendment to the Constitution of Arizona; amending article IX, section 2, Constitution of Arizona; amending article IX, Constitution of Arizona, by adding section 2.4; relating to property tax exemptions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring:
1. Article IX, section 2, Constitution of Arizona, is proposed to be amended as follows if approved by the voters and on proclamation of the Governor:
2. Property subject to taxation; exemptions
Section 2. (1) There shall be exempt from taxation all federal, state, county and municipal property.
(2) Property of educational, charitable and religious associations or institutions not used or held for profit may be exempt from taxation by law.
(3) Public debts, as evidenced by the bonds of Arizona, or its counties, municipalities or other subdivisions, shall also be exempt from taxation.
(4) All household goods owned by the user thereof and used solely for noncommercial purposes shall be exempt from taxation, and such person entitled to such exemption shall not be required to take any affirmative action to receive the benefit of such exemption.
(5) Stocks of raw or finished materials, unassembled parts, work in process or finished products constituting the inventory of a retailer or wholesaler located within the state and principally engaged in the resale of such materials, parts or products, whether or not for resale to the ultimate consumer, shall be exempt from taxation.
(6) The legislature may exempt personal property that is used for agricultural purposes or in a trade or business from taxation in a manner provided by law, except that the exemption does not apply to any amount of the full cash value of the personal property of a taxpayer that exceeds fifty thousand dollars. The legislature may provide by law to increase the exempt amount according to annual variations in a designated national inflation index.
(7) The legislature may exempt the property of cemeteries that are set apart and used to inter deceased human beings from taxation in a manner provided by law.
(8) There shall be further exempt from taxation the property of each honorably discharged airman, soldier, sailor, United States marine, member of revenue marine service, the coast guard, nurse corps or of any predecessor or of the component of auxiliary of any thereof, resident of this state, in the amount of:
(a) One thousand five hundred dollars if the total assessment of such person does not exceed three thousand five hundred dollars.
(b) One thousand dollars if the total assessment of such person does not exceed four thousand dollars.
(c) Five hundred dollars if the total assessment of such person does not exceed four thousand five hundred dollars.
(d) Two hundred fifty dollars if the total assessment of such person does not exceed five thousand dollars.
(e) No exemption if the total assessment of such person exceeds five thousand dollars.
No such exemption shall be made for such person unless such person shall have served at least sixty days in the military or naval service of the United States during World War I or prior wars and shall have been a resident of this state prior to September 1, 1945.
(9) There shall be further exempt from taxation as herein provided the property of each honorably discharged airman, soldier, sailor, United States marine, member of revenue marine service, the coast guard, nurse corps or of any predecessor or of the component of auxiliary of any thereof, resident of this state, where such person has a service‑connected disability as determined by the United States veterans administration or its successor. No such exemption shall be made for such person unless he shall have been a resident of this state prior to September 1, 1945 or unless such person shall have been a resident of this state for at least four years prior to his original entry into service as an airman, soldier, sailor, United States marine, member of revenue marine service, the coast guard, nurse corps or of any predecessor or of the component of auxiliary of any thereof. The property of such person having a compensable service-connected disability exempt from taxation as herein provided shall be determined as follows:
(a) If such person's service-connected disability as determined by the United States veterans administration or its successor is sixty per cent or less, the property of such person exempt from taxation shall be determined by such person's percentage of disability multiplied by the assessment of such person in the amount of:
(i) One thousand five hundred dollars if the total assessment of such person does not exceed three thousand five hundred dollars.
(ii) One thousand dollars if the total assessment of such person does not exceed four thousand dollars.
(iii) Five hundred dollars if the total assessment of such person does not exceed four thousand five hundred dollars.
(iv) Two hundred fifty dollars if the total assessment of such person does not exceed five thousand dollars.
(v) No exemption if the total assessment of such person exceeds five thousand dollars.
(b) If such person's service-connected disability as determined by the United States veterans administration or its successor is more than sixty per cent, the property of such person exempt from taxation shall be in the amount of:
(i) One thousand five hundred dollars if the total assessment of such person does not exceed three thousand five hundred dollars.
(ii) One thousand dollars if the total assessment of such person does not exceed four thousand dollars.
(iii) Five hundred dollars if the total assessment of such person does not exceed four thousand five hundred dollars.
(iv) Two hundred fifty dollars if the total assessment of such person does not exceed five thousand dollars.
(v) No exemption if the total assessment of such person exceeds five thousand dollars.
(10) There shall be further exempt from taxation the property of each honorably discharged airman, soldier, sailor, United States marine, member of revenue marine service, the coast guard, nurse corps or of any predecessor or of the component of auxiliary of any thereof, resident of this state, where such person has a nonservice-connected total and permanent disability, physical or mental, as so certified by the United States veterans administration, or its successor, or such other certification as provided by law, in the amount of:
(a) One thousand five hundred dollars if the total assessment of such person does not exceed three thousand five hundred dollars.
(b) One thousand dollars if the total assessment of such person does not exceed four thousand dollars.
(c) Five hundred dollars if the total assessment of such person does not exceed four thousand five hundred dollars.
(d) Two hundred fifty dollars if the total assessment of such person does not exceed five thousand dollars.
(e) No exemption if the total assessment of such person exceeds five thousand dollars.
No such exemption shall be made for such person unless he shall have served at least sixty days in the military or naval service of the United States during time of war after World War I and shall have been a resident of this state prior to September 1, 1945.
(11) (8) There shall be further exempt from taxation the property of each widow, resident of this state, in the amount of:
(a) One thousand five hundred dollars if the total assessment of such widow does not exceed three thousand five hundred dollars.
(b) One thousand dollars if the total assessment of such widow does not exceed four thousand dollars.
(c) Five hundred dollars if the total assessment of such widow does not exceed four thousand five hundred dollars.
(d) Two hundred fifty dollars if the total assessment of such widow does not exceed five thousand dollars.
(e) No exemption if the total assessment of such widow exceeds five thousand dollars.
In order to qualify for this exemption, the income from all sources of such widow, together with the income from all sources of all children of such widow residing with the widow in her residence in the year immediately preceding the year for which such widow applies for this exemption, shall not exceed:
1. Seven thousand dollars if none of the widow's children under the age of eighteen years resided with her in such widow's residence; or
2. Ten thousand dollars if one or more of the widow's children residing with her in such widow's residence was under the age of eighteen years, or was totally and permanently disabled, physically or mentally, as certified by competent medical authority as provided by law.
Such widow shall have resided with her last spouse in this state at the time of the spouse's death if she was not a widow and a resident of this state prior to January 1, 1969.
(12) (9) No property shall be exempt which has been conveyed to evade taxation. The total exemption from taxation granted to the property owned by a person who qualifies for any exemption in accordance with the terms of subsections (8), (9), (10) or (11) subsection (8) shall not exceed one thousand five hundred dollars. The provisions of this section shall be self‑executing.
(13) (10) All property in the state not exempt under the laws of the United States or under this constitution or exempt by law under the provisions of this section shall be subject to taxation to be ascertained as provided by law.
2. Article IX, Constitution of Arizona, is proposed to be amended by adding section 2.4 as follows if approved by the voters and on proclamation of the Governor:
2.4. Exemption from taxation; primary residence of veteran with a disability or surviving spouse; qualifications; definitions
Section 2.4. A. A portion of the assessed valuation of the primary residence of a qualifying veteran with a service‑connected disability of one hundred percent that is owned by the veteran is exempt from taxation as provided by this section.
B. A portion of the assessed valuation of the primary residence of a qualifying veteran who is killed in action or who dies as a result of injury incurred while on active duty in military service is exempt from taxation as provided by this section if the residence is currently owned and occupied as the primary residence solely of the veteran's unmarried surviving spouse and children.
C. If a veteran with a disability or surviving spouse qualifies under this section, the assessed valuation of the primary residence used for all purposes of section 18 of this article shall be reduced by twenty-five thousand dollars. The legislature may provide by law to increase this amount according to increases in a designated national inflation index.
D. The exemption under this section is subject to the following conditions:
1. The veteran must have a service‑connected disability of one hundred percent, as rated by the United States department of veterans affairs, that was sustained while serving in the armed forces of the United States. Any question regarding a claimed service‑connected disability must be verified by the United States department of veterans affairs or by a state veterans service agency.
2. The veteran with a disability must own or possess an equity interest in the primary residence and occupy the primary residence as the person's primary dwelling place. A surviving spouse must own or possess an equity interest in the same primary residence owned by the veteran killed in action, or occupied by the veteran, at the time of death.
3. Property is not exempt under this section if it was conveyed to a veteran or spouse to evade taxation.
E. An exemption granted pursuant to this section is in lieu of any other real property tax exemption that may apply to the property.
F. For the purposes of this section:
1. Property is considered to be the primary residence of a veteran with a disability who is confined to a hospital or other care facility if the property would be the veteran's primary residence were it not for the veteran's confinement and if the property is not leased or rented to another occupant other than a family member who resides at the property.
2. All matters concerning qualifying status under this section shall be determined as of July 1 of the valuation year.
3. Qualifying property includes:
(a) Property that is owned by the veteran with the veteran's spouse as a joint tenancy, a tenancy in common or community property.
(b) Property that is owned by the veteran or the veteran's spouse as separate property.
(c) Property that is owned with one or more other persons to the extent of the interest owned by the veteran, the veteran's spouse or both the veteran and the veteran's spouse.
(d) Property that is owned by the veteran's unmarried surviving spouse with one or more other persons to the extent of the interest owned by the surviving spouse.
(e) Property that is owned in trust for the sole benefit of the veteran, of the veteran and the veteran's spouse or of the veteran's unmarried surviving spouse.
(f) As much of the property of a corporation as constitutes the principal place of residence of a veteran or a veteran's unmarried surviving spouse if the veteran or the veteran's unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to occupy residential property, legal title to which is owned by the corporation. To qualify under this subdivision, the corporate property must be listed and assessed as residential property on the tax roll. Notwithstanding any law or the articles of incorporation or bylaws of a corporation described is this subdivision, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any corporate charges to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
4. Any reference to the United States department of veterans affairs or the United States secretary of veterans affairs includes any successor federal agency or officer.
G. The legislature shall establish procedures for establishing a person's eligibility for, and otherwise implementing, the exemption under this section.
H. For the purposes of this section:
1. "Armed forces" means all regular, reserve and national guard components of the uniformed services of the United States, including the United States army, navy, air force, marine corps and coast guard, and includes civilian service that is authorized by federal law to be considered active military duty for the purposes of laws administered by the United States secretary of veterans affairs.
2. "Primary residence" means an owner-occupied dwelling, including a manufactured home, that is owned by and used as the primary dwelling place of the veteran with a disability or surviving spouse, including not more than four acres of real property on which the residence is located. A primary residence may consist of part of a multidwelling or multipurpose building and part of the land on which the building is located.
3. "Veteran" means a resident of this state who has served in and been discharged or released under honorable conditions from service in the armed forces of the United States in time of war, or in time of peace in a campaign or expedition for which a medal has been issued by Congress.
3. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article XXI, Constitution of Arizona.
