Comparing HB 2672 → AB 162 — Property taxation: exemption: veterans.

Struck = only in HB 2672 · added = only in AB 162.

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House Engrossed property tax;
Bill Text - AB-162 Property taxation:
exemption;
exemption:
veterans;
veterans.
disabilities State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session HOUSE BILL 2672 AN ACT AMENDING SECTION 42-11111, ARIZONA REVISED STATUTES;
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RELATING TO PROPERTY TAX EXEMPTIONS.
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(TEXT OF BILL BEGINS ON NEXT PAGE) - i - H.B.
07/19/93 - Chaptered AB-162 Property taxation:
2672 Be it enacted by the Legislature of the State of Arizona:
exemption:
Section 1.
veterans.(1993-1994) Text >> Votes >> History >> Bill Analysis >> Today's Law As Amended >> Compare Versions >> Status >> Comments To Author >> Add To My Favorites >> SHARE THIS:
Section 42-11111, Arizona Revised Statutes, is amended to read:
AB162:v95#DOCUMENTBill Start Assembly Bill No.
42-11111.
162 CHAPTER 140An act to amend Section 205.5 of the Revenue and Taxation Code, relating to taxation.
Exemption for property;
[ Filed with Secretary of State  July 19, 1993.
widows and widowers;
Approved by Governor  July 19, 1993.
persons with a total and permanent disability;
] LEGISLATIVE COUNSEL'S DIGESTAB 162, Brulte.
veterans with a disability;
Property taxation:
definitions A.
exemption:
The property of widows and widowers, of persons with total and permanent disabilities and of veterans with service or nonservice connected disabilities who are residents of this state is exempt from taxation as provided by article IX, section 2, Constitution of Arizona, and subject to the conditions and limits prescribed by this section.
veterans.
B.
Existing law with respect to property taxation implements the Legislature’s authorization under the California Constitution to exempt, in whole or in part, the home of a person or a person’s spouse, including an unmarried surviving spouse, if the person, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled.
Pursuant to article IX, section 2, subsection F, Constitution of Arizona, the exemptions from taxation under this section are allowed in the amount of AS PROVIDED IN SUBSECTIONS C, D AND E OF THIS SECTION.
Existing law establishes, through the 1995–96 fiscal year, exemptions in the amount of $40,000 and $100,000 of the full value of an eligible person’s residence, or in the amount of $60,000 and $150,000 where the eligible person’s household income does not exceed the amounts specified in a certain statute.
C.
Commencing with the 1996–97 fiscal year, existing law limits all exemption amounts to the $40,000 and $60,000 amounts of full value specified above.
THE PROPERTY OF A VETERAN WITH A SERVICE CONNECTED DISABILITY WHOSE DISABILITY RATING BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS IS ONE HUNDRED PERCENT IS FULLY EXEMPT FROM TAXATION.
A constitutional amendment approved by the voters at the November 3, 1992, general election additionally authorizes the Legislature to exempt from property taxation, in whole or in part, the home of a person or that person’s spouse, including an unmarried surviving spouse, where that person has, as a result of a service-connected disease or injury, died while on active duty in military service.
A SURVIVING SPOUSE OF A VETERAN WHOSE PROPERTY IS ELIGIBLE FOR THE EXEMPTION UNDER THIS SUBSECTION MAY CONTINUE TO CLAIM THE FULL EXEMPTION AS LONG AS THE SURVIVING SPOUSE USES THE PROPERTY AS THE SURVIVING SPOUSE'S PRIMARY RESIDENCE AND THE SURVIVING SPOUSE DOES NOT REMARRY.
This bill would expand existing exemption statutes to implement the Legislature’s additional exemption authority described above.
D.
It would establish, for the 1994–95 and 1995–96 fiscal years, an exemption in the amount of $100,000 of the full value of an eligible person’s residence, or in the amount of $150,000 of the full value of an eligible person’s residence where the eligible person’s household income does not exceed amounts specified in a certain statute.
THE PROPERTY OF A VETERAN WITH A NONSERVICE CONNECTED DISABILITY WHOSE DISABILITY RATING BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS IS ONE HUNDRED PERCENT OR LESS OR WITH A SERVICE CONNECTED DISABILITY WHOSE DISABILITY RATING BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS IS LESS THAN ONE HUNDRED PERCENT IS EXEMPT IN THE AMOUNT OF $4,188.
Commencing with the 1996–97 fiscal year, it would limit the foregoing amounts to $40,000 and $60,000 of full value.
THE LIMIT UNDER THIS SUBSECTION IS FURTHER LIMITED BY MULTIPLYING THE TOTAL EXEMPTION AMOUNT BY THE PERCENTAGE OF THE VETERAN'S DISABILITY, AS RATED BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS.
Section 2229 of the Revenue and Taxation Code provides that no new classification or exemption of property for purposes of ad valorem property taxation shall extend more than 5 years or shall exempt more than 75% of the value thereof.
E.
The section requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of the exemption.
THE PROPERTY OF A WIDOW OR WIDOWER OR A PERSON WITH A TOTAL AND PERMANENT DISABILITY IS EXEMPT IN THE AMOUNT OF:
This bill would provide that the requirements of Section 2229 of the Revenue and Taxation Code do not apply to the property tax exemption provided by the bill, and that no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to this bill.
1.
Digest KeyBill TextThe people of the State of California do enact as follows:SECTION 1. Section 205.5 of the Revenue and Taxation Code, as amended by Section 1 of Chapter 1077 of the Statutes of 1989, is amended to read:
$4,188 if the person's total assessment does not exceed $28,459.
205.5. (a)  Property that is owned by, and that constitutes the principal place of residence of, a veteran is exempted from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), if the veteran is blind in both eyes or has lost the use of two or more limbs as a result of injury or disease incurred in military service or that does not exceed one hundred thousand dollars ($100,000), if the veteran is totally disabled as a result of injury or disease incurred in military service.
For a veteran with a service or nonservice connected disability, the $4,188 limit under this paragraph is further limited by multiplying the total exemption amount by the percentage of the veteran's disability, as rated by the United States department of veterans affairs.
The forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), and the one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), in the case of an eligible veteran whose household income as defined in Section 20504 does not exceed the amounts specified in Section 20585.
2.
(b)  For purposes of this section, “veteran” means either of the following:
No exemption if the person's total assessment exceeds $28,459.
(1)  A veteran as specified in subdivision (o) of Section 3 of Article XIII of the Constitution without regard to any limitation contained therein on the value of property owned by the veteran or the veteran’s spouse.
C.
(2)  Any person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease died while on active duty in military service.
F.
The Veterans Administration shall determine whether an injury or disease is service connected.
On or before December 31 of each year, the department shall increase the following amounts based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years:
(c)  (1)  Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran is exempt from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), in the case of a veteran who was blind in both eyes or had lost the use of two or more limbs, or one hundred thousand dollars ($100,000), in the case of a veteran who was totally disabled;
1.
provided, that the deceased veteran during his or her lifetime qualified in all respects for the exemption or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977;
The total allowable exemption amount UNDER SUBSECTIONS D AND E OF THIS SECTION and the total assessment limit amount under subsection B E of this section.
or provided that the veteran died from a disease which was service connected as determined by the Veterans Administration.
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The forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), and the one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
2672 2.
(2)  Commencing with the 1994–95 fiscal year, property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran as described in paragraph (2) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000).
The total income limit amounts under subsection E H, paragraphs 1 and 2 of this section.
The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
D.
(d)  As used in this section, “property that is owned by a veteran” or “property that is owned by the veteran’s unmarried surviving spouse” includes all of the following:
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G.
(1)  Property owned by the veteran with the veteran’s spouse as a joint tenancy, tenancy in common or as community property.
For the purpose of determining the amount of the allowable exemption pursuant to subsection B D of this section, the person's total assessment shall not include the value of any vehicle that is taxed under title 28, chapter 16, article 3.
(2)  Property owned by the veteran or the veteran’s spouse as separate property.
E.
(3)  Property 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.
H.
(4)  Property owned by the veteran’s unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veteran’s unmarried surviving spouse.
Pursuant to article IX, section 2, subsection F, Constitution of Arizona, to qualify for this exemption, the total income from all sources of the claimant and the claimant's spouse and the income from all sources of all of the claimant's children who resided with the claimant in the claimant's residence in the year immediately preceding the year for which the claimant applies for the exemption shall not exceed:
(5)  So much of the property of a corporation as constitutes the principal place of residence of a veteran or a veteran’s unmarried surviving spouse when the veteran, or the veteran’s spouse, or the veteran’s unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation.
1.
The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property.
$34,901 if none of the claimant's children under eighteen years of age resided with the claimant in the claimant's residence.
Notwithstanding any provision of law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
2.
(e)  For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less;
$41,870 if one or more of the claimant's children residing with the claimant in the claimant's residence either:
losing the use of a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis;
(a) Were under eighteen years of age.
and being totally disabled means that the United States Veterans Administration or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.
(b) Had a total and permanent physical or mental disability, as certified by competent medical authority as provided by law.
(f)  An exemption granted to a claimant in accordance with the provisions of this section shall be in lieu of the veteran’s exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution and any other real property tax exemption to which the claimant may be entitled.
F.
No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption has been granted under the provisions of this section;
I.
provided, that if two or more veterans qualified pursuant to this section co-own a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
For the purposes of subsection E H of this section, "income from all sources" means the sum of the following, excluding the items listed in subsection G J of this section:
(g)  This section shall remain in effect until January 1, 1996, and on that date is repealed, unless a later enacted statute, which is chaptered on or before that date, deletes or extends that date.
1.
SEC.
Adjusted gross income as defined by the department.
2. Section 205.5 of the Revenue and Taxation Code, as amended by Section 2 of Chapter 1077 of the Statutes of 1989, is amended to read:
2.
205.5. (a)  Property that is owned by, and that constitutes the principal place of residence of, a veteran is exempted from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), if the veteran is blind in both eyes, has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service.
The amount of capital gains excluded from adjusted gross income.
The exemption shall be sixty thousand dollars ($60,000) in the case of an eligible veteran whose household income as defined in Section 20504 does not exceed the amounts specified in Section 20585.
3.
(b)  For purposes of this section, “veteran” means either of the following:
Nontaxable strike benefits.
(1)  A veteran as specified in subdivision (o) of Section 3 of Article XIII of the Constitution without regard to any residency requirement or limitation contained therein on the value of property owned by the veteran or the veteran’s spouse.
4.
(2)  Any person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or a disease that is service related as determined by the Veterans Administration, died while on active duty in military service.
Nontaxable interest that is received from the federal government or any of its instrumentalities.
(c)  (1)  Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran is exempt from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000);
5.
provided, that the deceased veteran during his or her lifetime qualified in all respects for the exemption or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977;
Payments that are received from a retirement program and paid by:
or provided that the veteran died from a disease which was service connected as determined by the Veterans Administration.
(a) This state or any of its political subdivisions.
The exemption shall be sixty thousand dollars ($60,000) in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
(b) The United States through any of its agencies, instrumentalities or programs, except as provided in subsection G J of this section.
(2)  Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran as described in paragraph (2) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000).
6.
The forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
The gross amount of any pension or annuity that is not otherwise exempted.
(d)  As used in this section, “property that is owned by a veteran” or “property that is owned by the veteran’s unmarried surviving spouse” includes all of the following:
G.
(1)  Property owned by the veteran with the veteran’s spouse as a joint tenancy, tenancy in common or as community property.
J.
(2)  Property owned by the veteran or the veteran’s spouse as separate property.
Notwithstanding subsection F I of this section, income from all sources does not include monies received from:
(3)  Property 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.
1.
(4)  Property owned by the veteran’s unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veteran’s unmarried surviving spouse.
Cash public assistance and relief.
(5)  So much of the property of a corporation as constitutes the principal place of residence of a veteran or a veteran’s unmarried surviving spouse when the veteran, or the veteran’s spouse, or the veteran’s unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation.
2.
The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property.
Railroad retirement benefits.
Notwithstanding any provision of law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
3.
(e)  For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less;
Payments under the federal social security act (49 Stat.
losing the use of a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis;
620).
and being totally disabled means that the United States Veterans Administration or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.
4.
(f)  An exemption granted to a claimant in accordance with the provisions of this section shall be in lieu of the veteran’s exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution and any other real property tax exemption to which the claimant may be entitled.
Payments under the unemployment insurance laws of this state.
No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption has been granted under the provisions of this section;
5.
provided, that if two or more veterans qualified pursuant to this section co-own a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
Payments from ANY veterans disability pensions.
(g)  This section shall become operative on January 1, 1996.
6.
SEC.
Workers' compensation payments.
3. Notwithstanding Section 2229 of the Revenue and Taxation Code, the requirements of that section relating to any exemption of property for more than five years or for more than 75 percent of the value thereof, shall not apply to any exemption made by this act.
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In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
2672 7.
Loss of time insurance.
8.
Gifts from nongovernmental sources, surplus foods or other relief in kind supplied by a governmental agency.
H.
K.
A widow or widower, a person with a total and permanent disability or a veteran with a disability shall establish eligibility for exemption under this section by filing an affidavit with the county assessor under section 42-11152 when initially claiming the exemption.
Each year thereafter, the person or the person's representative shall annually calculate income from the preceding year to ensure that the person still qualifies for the exemption and notify the county assessor in writing of any event that disqualifies the person from further exemption.
Regardless of whether the person or representative notifies the assessor as required by this subsection, the property is subject to tax as provided by law from the date of disqualification, including interest, penalties and proceedings for tax delinquencies.
Disqualifying events include:
1.
EXCEPT AS PROVIDED IN SUBSECTION C OF THIS SECTION, the person's death.
2.
The remarriage of a widow or widower.
3.
The person's income from all sources exceeding the limits prescribed by subsection E H of this section.
4.
The conveyance of title to the property to another owner.
I.
L.
Any dollar amount of exemption that is unused in a tax year against the limited property value of property and improvements owned by the individual may be applied for the tax year against the value of personal property subject to special property taxes, including the taxes collected pursuant to title 5, chapter 3, article 3 and title 28, chapter 16, article 3.
J.
M.
An individual is not entitled to property tax exemptions under more than one category as a widow or widower, a person with a total and permanent disability or a veteran with a disability even if the individual is eligible for an exemption in more than one category.
K.
O.
For the purposes of this section:
1.
"Competent medical authority" means any of the following:
(a) An individual licensed under title 32, chapter 8, 13, 14, 17, 19.1, 25 or 29 or a comparable law of another state.
(b) A registered nurse practitioner as defined in section 32-1601.
(c) The United States department of veterans affairs, as evidenced by a disability award letter.
2.
"GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce or its successor for the four quarters of the state fiscal year.
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2672 3.
"Person with a total and permanent disability" means a person who is unable to engage in any substantial gainful activity, for pay or profit, by reason of any physical or mental impairment that is expected to last for a continuous period of at least twelve months or result in death within twelve months as certified by a competent medical authority.
4.
"Veteran" means an individual who has served in, and been discharged, separated or released under honorable conditions from, active or inactive service in the uniformed services of the United States, including:
(a) All regular, reserve and national guard components of the United States army, navy, air force, marine corps and coast guard.
(b) The commissioned corps of the national oceanic and atmospheric administration.
(c) The commissioned corps of the United States public health service.
(d) A nurse in the service of the American red cross or in the army and navy nurse corps.
(e) Any other civilian service that is authorized by federal law to be considered active military duty for the purpose of laws administered by the United States secretary of veterans affairs.
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