The Arizona Senate Republicans is advancing legislation that expands property tax relief, honoring service and helping veterans maintain financial stability.
SB 1365, sponsored by Senator David Gowan, expands Arizona’s property tax exemption for veterans with service-connected or non-service-connected disabilities. Under current law, disabled veterans must stay below a household income cap of $39,865 or $47,826 to qualify for the exemption. This legislation removes the income limit for disabled veterans, acknowledging that disability compensation, retirement income, or a working spouse should not disqualify them from benefits earned through their service. Veterans will still need to establish eligibility with their county assessor, but they will no longer risk losing the exemption simply because their household income slightly exceeds an arbitrary threshold.
“Our brave disabled veterans fulfilled their commitments to this country, making tremendous sacrifices along the way,” said Gowan. “They shouldn’t have to re-qualify every year or worry that earning a little more, receiving a raise, or having a working spouse will jeopardize the property tax relief they were promised. This bill is about respect, stability, and common sense. It ensures that if you are a disabled veteran, Arizona will honor your service without putting you through unnecessary hoops. This is not charity; it’s gratitude backed by action. Republicans are proud to support our veterans, keep our promises, and ensure that government serves those who earned these benefits rather than working against them.”
Provisions:
1. Exempts a veteran with a service or nonservice-connected disability from the income cap.
2. Applies the exemption from the income cap to taxable years beginning January 1, 2027.
Currently, all property in Arizona is subject to taxation with certain exemptions outlined in the Arizona Constitution and prescribed by statute. The property of Arizona residents who are widows, widowers, persons with total and permanent disabilities or veterans with service or nonservice-connected disabilities are exempt from property tax subject to the conditions and limitations prescribed by statute.
To qualify for a property tax exemption, a claimant’s total income from all sources is subject to a statutory cap which is adjusted for inflation annually. The household’s total income from all sources may not exceed: 1) $39,865, for households with no children under 18 years old; or 2) 47,826, for households with children under 18 years old or children with a total and permanent disability. A widow, widower, person with a total and permanent disability or veteran with a service or nonservice-connected disability must initially establish eligibility for the property tax exemption by filing an affidavit with the county assessor.
Each following year, the person must annually calculate income from the preceding year to ensure that the person still qualifies for the exemption and notify the county assessor of any event that disqualifies the person from further exemption (A.R.S. §§ 42-11002 and 42-11111).
Be the first to comment