Bill Text: AZ SCR1031 | 2011 | Fiftieth Legislature 1st Regular | Engrossed
Bill Title: Property tax exemption; disabled veterans
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2011-03-01 - Senate Committee of the Whole action: Retained [SCR1031 Detail]
Download: Arizona-2011-SCR1031-Engrossed.html
|
Senate Engrossed |
|
State of Arizona Senate Fiftieth Legislature First Regular Session 2011
|
|
SENATE CONCURRENT RESOLUTION 1031 |
|
|
|
|
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, 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 tax; property of disabled veterans or surviving spouses; qualifications; definitions
Section 2.4. A. The primary residence of a qualifying disabled veteran that is owned by the disabled veteran, the disabled veteran's spouse or jointly by the disabled veteran and the disabled veteran's spouse is exempt from taxation as provided by this section.
B. The primary residence of the unmarried surviving spouse of a qualifying disabled veteran that is owned by the surviving spouse is exempt from taxation as provided by this section if the disabled veteran died as a result of injury incurred while on active duty in military service.
C. The exemption under this section is subject to the following conditions:
1. The disabled veteran must have been awarded the Purple Heart for injury or death while serving in the armed forces of the United States. Any question regarding the legitimacy of a claimed award of the purple Heart must be verified by the United States department of veterans affairs or a state veterans service agency.
2. A disabled veteran must have a disability of fifty per cent or greater, as rated by the United States department of veterans affairs, as a result of injury or disease incurred in military service.
3. Property is not exempt under this section if it was conveyed to a disabled veteran or spouse to evade taxation.
D. An exemption granted pursuant to this section is in lieu of any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption is granted pursuant to this section, except that if two or more disabled veterans who are otherwise qualified pursuant to this section are co-owners of the same property in which they reside, each is entitled to the exemption to the extent of the respective ownership interests in the property.
E. For the purposes of this section:
1. The United States department of veterans affairs shall determine whether an injury or disease is service connected.
2. Property is considered to be the primary residence of a disabled veteran who is confined to a hospital or other care facility if the property would be the disabled veteran's primary residence were it not for the disabled 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.
3. All matters concerning qualifying status under this section shall be determined as of July 1 of the valuation year.
4. Qualifying property includes:
(a) Property that is owned by the disabled veteran with the disabled veteran's spouse as a joint tenancy, a tenancy in common or community property.
(b) Property owned by the disabled veteran or the disabled veteran's spouse as separate property.
(c) Property owned with one or more other persons to the extent of the interest owned by the disabled veteran, the disabled veteran's spouse or both the disabled veteran and the disabled veteran's spouse.
(d) Property owned by the disabled veteran's unmarried surviving spouse with one or more other persons to the extent of the interest owned by the surviving spouse.
(e) Property owned in trust for the sole benefit of the disabled veteran, of the disabled veteran and the disabled veteran's spouse or of the disabled veteran's unmarried surviving spouse.
(f) As much of the property of a corporation as constitutes the principal place of residence of a disabled veteran or a disabled veteran's unmarried surviving spouse if the disabled veteran or the disabled veteran's spouse or the disabled 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. An exemption derived from this subdivision shall be shown on the tax roll and shall reduce the full cash value of the corporate property. 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.
F. 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 disabled veteran or surviving spouse, including not more than one acre 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 under honorable conditions from military 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.
