1.(1)  Property owned by the veteran with the veteran’s spouse as a joint tenancy, tenancy in common or as community property.

$34,901(2) if Property noneowned ofby the claimant'sveteran childrenor under eighteen years of age resided with the claimantveteran’s inspouse theas claimant'sseparate residence.property.

2.(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.

$41,870(4) if Property owned by the veteran’s unmarried surviving spouse with one or more ofother thepersons claimant'sto childrenthe residingextent withof the claimantinterest inowned by the claimant'sveteran’s residenceunmarried either:surviving spouse.

(a)(5) Were So undermuch eighteenof yearsthe property of age.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.

(b)The Hadexemption aprovided totalby andthis permanentparagraph physicalshall orbe mentalshown disability,on asthe certifiedlocal byroll competentand medicalshall authorityreduce asthe providedfull byvalue law.of the corporate property.

F.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.

H.(e)  For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less;

Forlosing the purposesuse of subsectiona Elimb Gmeans ofthat thisthe section,limb "incomehas frombeen allamputated sources"or meansits theuse sumhas ofbeen thelost following,by excludingreason theof itemsankylosis, listedprogressive inmuscular subsectiondystrophies, Gor Iparalysis; of this section:

1.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.

Adjusted(f) gross An incomeexemption asgranted definedto 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 department.Constitution and any other real property tax exemption to which the claimant may be entitled.

2.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;

Theprovided, amountthat ofif capitaltwo gainsor excludedmore fromveterans adjustedqualified grosspursuant income.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.

3.(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.

NontaxableSEC. strike benefits.

4.2. 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:

Nontaxable205.5. (a) interest Property that is receivedowned by, and that constitutes the principal place of residence of, a veteran is exempted from taxation on that part of the federalfull governmentvalue 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 anymore limbs, or is totally disabled as a result of itsinjury instrumentalities.or disease incurred in military service.

5.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.

Payments(b) that For arepurposes receivedof fromthis asection, retirement“veteran” programmeans andeither paidof by:the following:

(a)(1) This A stateveteran oras 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 itsproperty politicalowned subdivisions.by the veteran or the veteran’s spouse.

(b)(2) The Any Unitedperson Stateswho throughwould anyqualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of itsa agencies,service-connected instrumentalitiesinjury or programs,a exceptdisease that is service related as provideddetermined inby subsectionthe GVeterans IAdministration, ofdied thiswhile section.on active duty in military service.

6.(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);

Theprovided, grossthat amountthe ofdeceased anyveteran pensionduring his or annuityher 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 isthe notveteran otherwisedied exempted.prior to January 1, 1977;

G.or provided that the veteran died from a disease which was service connected as determined by the Veterans Administration.

I.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.

Notwithstanding(2) subsection Property Fthat His owned by, and that constitutes the principal place of thisresidence section,of, incomethe unmarried surviving spouse of a veteran as described in paragraph (2) of subdivision (b) is exempt from alltaxation sourceson that part of the full value of the residence that does not includeexceed moniesforty receivedthousand from:dollars ($40,000).

1.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.

Cash(d) public As assistanceused andin relief.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:

2.(1)  Property owned by the veteran with the veteran’s spouse as a joint tenancy, tenancy in common or as community property.

Railroad(2) retirement Property benefits.owned by the veteran or the veteran’s spouse as separate property.

3.(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.

Payments(4) under Property owned by the federalveteran’s socialunmarried securitysurviving actspouse (49with Stat.one or more other persons to the extent of the interest owned by the veteran’s unmarried surviving spouse.

620).(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.

4.The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property.

PaymentsNotwithstanding underany theprovision unemploymentof insurancelaw lawsor articles of incorporation or bylaws of a corporation described in this state.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.

5.(e)  For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less;

Paymentslosing fromthe veteransuse disabilityof pensions.a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis;

6.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.

Workers'(f) compensation An payments.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.

7.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;

Lossprovided, 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 timehis insurance.or her interest.

8.(g)  This section shall become operative on January 1, 1996.

GiftsSEC. from nongovernmental sources, surplus foods or other relief in kind supplied by a governmental agency.

H.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.

J.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.

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, IF NECESSARY, 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 - 2 - H.B.

2406 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.

The person's death.

2.

The remarriage of a widow or widower.

3.

IF THE PERSON IS CLAIMING THE EXEMPTION UNDER SUBSECTION D OF THIS SECTION, the person's income from all sources exceeding the limits prescribed by subsection E G of this section.

4.

The conveyance of title to the property to another owner.

I.

K.

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.

L.

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.

M.

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.

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.

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2406 (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.

Sec.

2.

Section 42-17151, Arizona Revised Statutes, is amended to read:

42-17151.

County, municipal, community college and school tax levy A.

On or before the third Monday in August each year, the governing body of each county, city, town, community college district and school district shall:

1.

Fix, levy and assess the amount to be raised from primary property taxation and secondary property taxation.

This amount, plus all other sources of revenue, as estimated, and restricted and unrestricted unencumbered balances from the preceding fiscal year, shall equal the total of amounts proposed to be spent in the budget for the current fiscal year.

THE AMOUNT TO BE RAISED FROM PRIMARY PROPERTY TAXES MAY NOT INCLUDE THE AMOUNT TO OFFSET THE AGGREGATE AMOUNT OF EXEMPTIONS PROVIDED UNDER SECTION 42-11111, SUBSECTION C FOR THE TAX YEAR.

2.

Designate the amounts to be levied for each purpose appearing in the adopted budget.

3.

Fix and determine a primary property tax rate and a secondary property tax rate, each rounded to four decimal places on each $100 of taxable property shown by the finally equalized valuations of property, minus exemptions, that appear on the tax rolls for the fiscal year, as determined by the assessor on or before February 10 of the tax year pursuant to section 42-17052, and that when extended on those valuations will produce, in the aggregate, the entire amount to be raised by direct taxation for that year.

Amounts levied for debt service on bonds payable from the secondary tax are and shall be considered special revenues of the county, city, town or district, shall be kept in a special, segregated fund, are not and shall not be general property taxes and may not be used for any other purpose of the county, city, town or district.

B.

The governing body of a county, city, town or community college district shall not fix, levy or assess an amount of primary property taxes in excess of the amount permitted by section 42-17051, subsection A, paragraph 7 or section 42-17005 as determined by the property tax oversight commission.

C.

The governing board of a common school district, a high school district or a unified school district shall not fix, levy or assess a primary property tax rate higher than the current year's rate if the - 4 - H.B.

2406 district meets both of the following criteria, as determined by the property tax oversight commission:

1.

The total primary property taxes levied for all taxing jurisdictions on at least one-half of the residential property of the district exceed the limitation described in section 15-972, subsection E.

2.

The school district primary property tax rate exceeds one hundred fifty percent of the applicable qualifying tax rate pursuant to section 41-1276.

For the purposes of this paragraph, the school district primary property tax rate does not include the tax rates computed pursuant to section 15-992, subsections B and F.

D.

Not later than December 31, the property tax oversight commission shall notify those school districts that meet the criteria described in subsection C of this section and the county school superintendents and boards of supervisors of the counties in which the school districts are located.

E.

Within three days after the final levies are determined for a county, city, town or community college district, the chief county fiscal officer shall notify the property tax oversight commission of the amount of the primary property tax levied.

F.

Pursuant to section 15-465.01, subsection E, an accommodation school governing board shall not levy a primary or secondary property tax.

The property tax oversight commission shall consider any amount of property tax levied by a county in support of an accommodation school to be part of the county's primary levy for the purposes of determining the county's compliance with subsection B of this section.

Sec.

3.

Applicability This act applies to tax years beginning from and after December 31, 2025.

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