HB 2406 Arizona House · 57th Legislature - First Regular Session

property tax; exemption; combat veterans

HB 2406 creates a full property tax exemption for Arizona combat veterans with a 100% service-connected disability rating from the U.S. Department of Veterans Affairs. This exemption applies to their primary residence, removing all property tax liability, and directly affects qualifying veterans who meet the disability rating and income limits ($34,901-$41,870 annually). The bill also updates annual exemption amounts based on GDP inflation and clarifies that unused exemptions can apply to personal property taxes. It does not change existing partial exemptions for other veterans or disability categories but adds this new category for combat veterans with the highest disability rating.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 27, 2025 Last action Feb 26, 2025

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What changed between versions

Introduced Version → House Engrossed Version · 7 edits

MODERATE

This bill updates Arizona's property tax exemption rules for widows, widowers, disabled persons, and veterans. It clarifies eligibility criteria, adjusts income thresholds, and adds specific provisions for combat-related veterans with 100% service-connected disabilities. The changes ensure exemptions remain current with economic changes and streamline how taxpayers prove eligibility.

Scope change

The bill applies to tax years beginning on or after December 31, 2025, extending its applicability to future fiscal periods.

ELIGIBILITY

Added full exemption for combat veterans with 100% service-connected, combat-related disabilities rated by the Department of Veterans Affairs.

Updated income thresholds for property tax exemptions to $34,901 for individuals without dependent children and $41,870 for those with dependent children under 18 or with disabilities.

REQUIREMENT

Added specific list of disqualifying events including death, remarriage for widows/widowers, income exceeding limits, and property transfer to another owner.

DEFINITION

Added detailed definitions for key terms including 'competent medical authority,' 'GDP price deflator,' 'person with total and permanent disability,' and 'veteran' to clarify eligibility criteria.

TECHNICAL

Reorganized statute numbering and formatting to align with current legislative standards and improve readability.

ENFORCEMENT

Added provisions requiring annual income recalculation and written notification to county assessors when disqualifying events occur.

FISCAL

Added mechanism for annual adjustment of exemption amounts and income limits based on GDP price deflator increases.

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Full legislative history

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Key actions

Committee

Feb 26, 2025

Lower · Passed

lower

Feb 19, 2025

Lower · Passed

lower

1 primary · 0 co-sponsors