HCR 2039

REFERENCE TITLE: property tax; primary residences; exemptions
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HCR 2039
Introduced by
Representative
  Livingston
A CONCURRENT
RESOLUTION
Proposing an amendment to the
constitution of Arizona; amending article IX, section 2, Constitution of
Arizona; relating to property tax exemptions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the House of Representatives of the State of
Arizona, the Senate concurring:
1. Article IX, section 2, Constitution of Arizona,
is proposed to be amended as follows if approved by the voters and on
proclamation of the Governor:
START_STATUTE2. Property
subject to taxation; exemptions
Section
2. A. All property in this state that is not exempt under
the laws of the United States or under this section is subject to taxation as
provided by law.
B. Property
that has been conveyed to evade taxation is not exempt.
C. The
following property is exempt from taxation:
1. All
federal, state, county and municipal property.
2. Public
debts, as evidenced by the bonds of this state and its counties, municipalities
and other political subdivisions.
3. Household
goods that are owned by the user of the goods and that are used solely for
noncommercial purposes.
4. Stocks
of raw or finished materials, unassembled parts, works in process or finished
products constituting the inventory of a retailer or wholesaler that is located
in this state and principally engaged in the resale of the materials, parts,
works or products, whether or not for resale to the ultimate consumer.
D. Subsection
C of this section is self-executing, and persons who are entitled to the
exemption are not required to take any affirmative action to receive the
benefit of the exemption.
E. The
legislature may exempt the following property by law:
1. The
property of an educational, charitable or religious association or institution
that is not used or held for profit.
2. Personal
property that is used in a trade or business or for agricultural purposes.
3. Cemeteries
that are set apart and used to inter deceased human beings.
4. The
property of a widow or widower who is a resident of this state.
5. The
property of a resident of this state who is at least eighteen years of age and
who has a medically certified total and permanent disability.
6. The
property of an honorably discharged veteran of the uniformed services of the
United States who is a resident of this state and who has a service or
nonservice connected disability as determined by the United States department
of veterans affairs, or its successor agency.
7. Residential property that is owned by at least one
person who is an honorably discharged veteran of the uniformed services of the
United States, who is a resident of this state and who has a service-connected
disability rating by the United States department of veterans affairs, or its
successor agency, of one hundred percent.
8. residential
property that is owned by at least one� person who is a citizen of the United
States, who is a resident of this state for at least the three tax years
immediately PRECEDING the tax year for which the EXEMPTION is claimed, who is
at least sixty-five years of age and who occupies the property as the
person's primary residence.
F. The
legislature may determine by law the qualifications for, and the amount of, the
exemptions of property described in subsection E of this section.
G. A person
is not eligible for exemption under more than one category as a widow, widower,
person with a total and permanent disability or veteran with a disability under
subsection E, paragraph 4, 5 or 6 of this section. END_STATUTE
2. Applicability
This act applies to tax years
beginning from and after December 31, 2026.
3. The Secretary of State
shall submit this proposition to the voters at the next general election as
provided by article XXI, Constitution of Arizona.