Comparing HB 2672 → SB 764 — Property tax: veterans' exemptions.

Struck = only in HB 2672 · added = only in SB 764.

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Bill Text - SB-764 Property tax:
exemption;
veterans’ exemptions.
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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.
09/16/04 - Chaptered 08/24/04 - Enrolled 08/17/04 - Amended Assembly 06/23/04 - Amended Assembly 01/26/04 - Amended Senate 01/05/04 - Amended Senate 02/21/03 - Introduced SB-764 Property tax:
(TEXT OF BILL BEGINS ON NEXT PAGE) - i - H.B.
veterans’ exemptions.(2003-2004) 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:
SB764:v93#DOCUMENTBill Start Senate Bill No.
Section 1.
764 CHAPTER 544An act to amend Section 205.5 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 16, 2004.
42-11111.
Approved by Governor  September 16, 2004.
Exemption for property;
] LEGISLATIVE COUNSEL'S DIGESTSB 764, Morrow.
widows and widowers;
Property tax:
persons with a total and permanent disability;
veterans’ exemptions.(1) The California Constitution authorizes an exemption from property taxation of the principal residence of a disabled veteran, or a veteran’s spouse, in the case in which the veteran has become disabled as a result of a service-connected disease or injury or has died while on active duty in military service.Existing property tax law specifies an exemption amount of $100,000, but increases that amount to $150,000, if the exemption claimant’s income does not exceed $40,000 as adjusted by a specified inflation factor.This bill would, for assessment years beginning on and after January 1, 2006, increase these exemption amounts by a specified inflation factor.
veterans with a disability;
This bill would also impose a state-mandated local program by requiring local tax officials to annually adjust these increased exemption amounts in accordance with a specified inflation factor.(2) 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.(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.
definitions A.
Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.(4) 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 205.5 of the Revenue and Taxation Code is amended to read:205.5. (a) Property that constitutes the principal place of residence of a veteran, that is owned by the veteran, the veteran’s spouse, or the veteran and the veteran’s spouse jointly, is exempted from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service.
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.
The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible veteran whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).(b) (1) For purposes of this section, “veteran” means either of the following:(A) A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution without regard to any limitation contained therein on the value of property owned by the veteran or the veteran’s spouse.(B) 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.
B.
The United States Department of Veterans Affairs shall determine whether an injury or disease is service connected.(2) For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility, if that property would be that veteran’s principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party.
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.
A family member that resides at the residence is not considered to be a third party.(c) (1) Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of a veteran who was blind in both eyes, had lost the use of two or more limbs, or was totally disabled provided that either of the following conditions is met:(A) 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.(B) The veteran died from a disease that was service connected as determined by the United States Department of Veterans Affairs.The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).(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), as adjusted for the relevant assessment year as provided in subdivision (h).
C.
The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).(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:(1) Property owned by the veteran with the veteran’s spouse as a joint tenancy, tenancy in common, or as community property.(2) Property owned by the veteran or the veteran’s spouse as separate property.(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.(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.(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.
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.
The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property.
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.
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.(e) For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less, or concentric contraction of the visual field to 5 degrees or less;
D.
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;
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.
and being totally disabled means that the United States Department of Veterans Affairs 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.(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 California Constitution and any other real property tax exemption to which the claimant may be entitled.
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.
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;
E.
provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.(g) Commencing on January 1, 2002, and for each assessment year thereafter, the household income limit shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.(h) Commencing on January 1, 2006, and for each assessment year thereafter, the exemption amounts set forth in subdivisions (a) and (c) shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.SEC.
THE PROPERTY OF A WIDOW OR WIDOWER OR A PERSON WITH A TOTAL AND PERMANENT DISABILITY IS EXEMPT IN THE AMOUNT OF:
2. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state may not reimburse any local agency for any property tax revenues lost by it pursuant to this act.SEC.
1.
3. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
$4,188 if the person's total assessment does not exceed $28,459.
If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.SEC.
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.
4. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
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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