Comparing HB 2672 → AB 2562 — Property taxation: disabled veterans' exemption.

Struck = only in HB 2672 · added = only in AB 2562.

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Bill Text - AB-2562 Property taxation:
exemption;
disabled veterans’ exemption.
veterans;
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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.
09/29/00 - Chaptered 08/25/00 - Enrolled 06/29/00 - Amended Senate 05/16/00 - Amended Assembly 03/28/00 - Amended Assembly 02/24/00 - Introduced AB-2562 Property taxation:
(TEXT OF BILL BEGINS ON NEXT PAGE) - i - H.B.
disabled veterans’ exemption.(1999-2000) Text >> Votes >> History >> Bill Analysis >> Today's Law As Amended >> Compare Versions >> Status >> Comments To Author >> Add To My Favorites >> SHARE THIS:
2672 Be it enacted by the Legislature of the State of Arizona:
AB2562:v94#DOCUMENTBill Start Assembly Bill No.
Section 1.
2562 CHAPTER 922An act to add Sections 276.2 and 276.3 to, and to repeal and add Section 276 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Section 42-11111, Arizona Revised Statutes, is amended to read:
[ Filed with Secretary of State  September 29, 2000.
42-11111.
Approved by Governor  September 29, 2000.
Exemption for property;
] LEGISLATIVE COUNSEL'S DIGESTAB 2562, Brewer.
widows and widowers;
Property taxation:
persons with a total and permanent disability;
disabled veterans’ exemption.Existing property tax law provides, pursuant to the authorization of the California Constitution, for the exemption from property taxation of specified amounts of the assessed value of the home of a disabled veteran, or a veteran’s spouse in the case in which the person has, as a result of a service-connected disease or injury, died while on active duty in military service.
veterans with a disability;
Existing property tax law generally requires a claiming affidavit for the disabled veterans’ exemption to be filed no later than the February 15 following the relevant lien date.
definitions A.
It also provides for partial exemptions, each applicable as provided and contingent upon an affidavit being no later than the December 10 following the lien date, of the lesser of either certain amounts of assessed value or 80% of the full value of the real property to which the exemption is to be applied.This bill would revise and recast current partial exemption provisions to require the cancellation or refund of either 90% or 85% of those taxes, including any interest and penalties, levied on that portion of the property’s assessed value that would have been exempted under a timely exemption claim, depending upon whether a claim is filed either within a specified period ending with the December 10 following the lien date or after that period.
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.
This bill would also make technical, nonsubstantive changes with respect to the application of the exemption to the 2nd installment of taxes on the secured property tax roll.This bill would, in the case in which the subject real property was acquired after the property tax lien date, also require the cancellation or refund of those taxes levied on the full exemption amount, provided an appropriate affidavit is filed on or before the next property tax lien date.This bill would also provide for the termination of a disabled veterans’ exemption upon the subject property being transferred to a 3rd party that is not eligible for that exemption.Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.This bill would take effect immediately as a tax levy.Digest KeyBill TextThe people of the State of California do enact as follows:SECTION 1. Section 276 of the Revenue and Taxation Code is repealed.SEC.
B.
2. Section 276 is added to the Revenue and Taxation Code, to read:276. (a) Except as otherwise provided by subdivision (b), for property for which the disabled veterans’ exemption described in Section 205.5 was available, but for which a timely claim was not filed, a partial exemption shall be applied in accordance with whichever of the following is applicable:(1) Ninety percent of any tax, including any interest or penalty thereon, levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate claim shall be canceled or refunded, provided that an appropriate claim for exemption is filed after 5 p.m.
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.
on February 15 of the calendar year in which the fiscal year begins but on or before the following December 10.(2) If an appropriate claim for exemption is filed after the time period specified in paragraph (1), 85 percent of that portion of any tax, including any interest or penalty thereon, that was levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate claim, shall be canceled or refunded.(b) If a late-filed claim for the sixty thousand dollar ($60,000) exemption or the one hundred fifty thousand dollar ($150,000) exemption is filed in conjunction with a timely filed claim for the forty thousand dollar ($40,000) or one hundred thousand dollar ($100,000) exemption, the amount of any exemption allowed under the late-filed claim under subdivision (a) shall be determined on the basis of that portion of the exemption amount, otherwise available under subdivision (a), that exceeds forty thousand dollars ($40,000) or one hundred thousand dollars ($100,000), as applicable.(c) For those claims filed pursuant to subdivision (a) after November 15, the exemption under that subdivision may be applied to the second installment.
C.
If that exemption is so applied, the first installment is still delinquent on December 10, and is subject to delinquent penalties provided for in this division if that installment is not timely paid.
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 refund shall be made to the taxpayer upon a claim submitted to the auditor if the exemption is applied to the second installment and either of the following is true:(1) Both installments are paid on or before December 10.(2) The reduction in taxes resulting from the exemption exceeds the amount of taxes due on the second installment.SEC.
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.
3. Section 276.2 is added to the Revenue and Taxation Code, to read:276.2. If the disabled veterans’ exemption as described in Section 205.5 would have been available for a property, but for that property being acquired by a person eligible for that exemption only after the lien date, and an appropriate application for that exemption is filed on or before the lien date in the calendar year next following the calendar year in which the property was acquired, there shall be canceled or refunded the amount of any taxes, including any interest or penalties thereon, levied on that portion of the assessed value of the property that would have been exempt under a timely and appropriate application.SEC.
D.
4. Section 276.3 is added to the Revenue and Taxation Code, to read:276.3. In the event that property receiving a disabled veterans’ exemption as described in Section 205.5 is sold or otherwise transferred to a person who is not eligible for that exemption, the exemption shall cease to apply on the date of that sale or transfer.SEC.
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.
5. Notwithstanding Section 2229 of the Revenue and Taxation Code, 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.SEC.
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.
6. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
E.
THE PROPERTY OF A WIDOW OR WIDOWER OR A PERSON WITH A TOTAL AND PERMANENT DISABILITY IS EXEMPT IN THE AMOUNT OF:
1.
$4,188 if the person's total assessment does not exceed $28,459.
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.
2.
No exemption if the person's total assessment exceeds $28,459.
C.
F.
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:
1.
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.
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2672 2.
The total income limit amounts under subsection E H, paragraphs 1 and 2 of this section.
D.
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G.
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.
E.
H.
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:
1.
$34,901 if none of the claimant's children under eighteen years of age resided with the claimant in the claimant's residence.
2.
$41,870 if one or more of the claimant's children residing with the claimant in the claimant's residence either:
(a) Were under eighteen years of age.
(b) Had a total and permanent physical or mental disability, as certified by competent medical authority as provided by law.
F.
I.
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:
1.
Adjusted gross income as defined by the department.
2.
The amount of capital gains excluded from adjusted gross income.
3.
Nontaxable strike benefits.
4.
Nontaxable interest that is received from the federal government or any of its instrumentalities.
5.
Payments that are received from a retirement program and paid by:
(a) This state or any of its political subdivisions.
(b) The United States through any of its agencies, instrumentalities or programs, except as provided in subsection G J of this section.
6.
The gross amount of any pension or annuity that is not otherwise exempted.
G.
J.
Notwithstanding subsection F I of this section, income from all sources does not include monies received from:
1.
Cash public assistance and relief.
2.
Railroad retirement benefits.
3.
Payments under the federal social security act (49 Stat.
620).
4.
Payments under the unemployment insurance laws of this state.
5.
Payments from ANY veterans disability pensions.
6.
Workers' compensation payments.
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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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