Arizona 2026 Regular Session

Arizona Senate Bill SB1365

Introduced
1/26/26  
Report Pass
2/16/26  
Report Pass
2/23/26  

Caption

Property tax; exemption; veterans; disabilities

Impact

This legislation aligns with the constitutional provisions of Arizona, aimed at alleviating the financial burden on veterans and disabled individuals by providing them with substantial tax relief. For veterans with nonservice-connected disabilities or lower service-connected ratings, a partial exemption of $4,188 is established, which is calculated based on the percentage of their disability. The inclusion of income and assessed property value limits in the bill further refines eligibility, ensuring that the exemptions are targeted towards those who are most in need.

Summary

Senate Bill 1365 amends Section 42-11111 of the Arizona Revised Statutes to provide specific property tax exemptions for widows, widowers, veterans, and persons with total and permanent disabilities. The bill aims to bolster the existing support for these groups by ensuring that veterans with a service-connected disability rating of one hundred percent are fully exempt from property taxes. Additionally, the bill details conditions under which surviving spouses can continue receiving these tax benefits, as long as they do not remarry, thus safeguarding their economic stability.

Sentiment

The sentiment regarding SB 1365 appears to be positive among stakeholders advocating for veterans and disabled individuals, as it enhances existing protections and reflects a societal commitment to support these vulnerable populations. Supporters argue that the financial relief from property taxes will significantly contribute to the quality of life for those eligible under the new provisions. However, there may be debates regarding the effectiveness of income limits and the adequacy of the exemptions provided, particularly for low-income veterans and disabled persons.

Contention

Notable points of contention might arise over the income thresholds set for exemption eligibility, which some might argue do not fully account for the cost of living for disabled individuals and veterans. Additionally, the policy could provoke discussions regarding the fairness of tax exemptions in general, particularly if they are perceived as disproportionately benefiting one demographic over another. Finally, the bill's implementation and effectiveness could be scrutinized in the wake of its enactment, with stakeholders advocating for continuous review and adjustment based on economic conditions.

Companion Bills

No companion bills found.

Previously Filed As

AZ HB2672

Property tax; exemption; veterans; disabilities

AZ HCR2023

Property tax; combat veterans; exemption

AZ HB2406

Property tax; exemption; combat veterans

AZ SB1122

Property tax exemptions; inflation adjustment

AZ SB1158

Property tax; exemption; widows; widowers

AZ SCR1001

Property tax exemption; virtual currency

AZ SB1407

Property tax assessment; greenhouses

AZ SB1540

Homestead; personal property; exemptions

AZ HB2961

Taxation; omnibus; 2025-2026

AZ SB1749

2025-2026; taxation; omnibus

Similar Bills

No similar bills found.