HCR 2039
property tax; primary residences; exemptions
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This resolution proposes an amendment to the Arizona Constitution to expand property tax exemptions. Specifically, it clarifies and broadens the categories of property eligible for exemption, including federal, state, and municipal property, household goods, inventory for retailers, and certain property owned by veterans and senior citizens. The legislature retains the authority to add additional property types for exemption.
Key provisions
- Property used for noncommercial purposes is exempt.
- Retailer and wholesaler inventory is exempt.
- Property owned by honorably discharged veterans with disabilities is exempt.
- Residential property owned by senior citizens (65+) as their primary residence is exempt.
- Property owned by widows/widowers is exempt.
- Property owned by residents with total and permanent disabilities is exempt.
- The legislature can add other property types for exemption.
- Exemptions apply to tax years beginning December 31, 2026.
Who is affected
- Homeowners
- Veterans
- Senior Citizens
- Individuals with disabilities
- Retailers and Wholesalers
Notable changes
- Expands the definition of ‘household goods’ eligible for exemption.
- Creates a new exemption category for residential property owned by senior citizens.
- Broadens the veteran exemption to include those with service-connected disabilities.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yoursRead the latest version inline or switch to a previous version.
| 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.