Arizona lawmakers propose property tax exemption for 100% disabled combat veterans

On February 19, 2025, the Arizona House Ways and Means Committee convened to discuss significant legislation aimed at providing property tax exemptions for veterans with service-connected disabilities. The primary focus was on House Bill 2406 and House Concurrent Resolution 2023, both designed to grant full property tax exemptions to combat veterans rated as 100% disabled by the U.S. Department of Veterans Affairs.

The bills were introduced to alleviate the financial burden on veterans who have sacrificed for their country. Representative Collinan, one of the bill sponsors, emphasized the fairness of the proposal, stating that veterans with a 100% combat-related disability should not have to pay property taxes. He noted that the legislation would simplify the process by eliminating the tax burden entirely for these individuals.

During the meeting, committee members raised questions regarding the fiscal implications of the proposed legislation. Representative Carter inquired about the existence of fiscal notes, which are assessments of the financial impact of proposed legislation. It was clarified that while there were no fiscal notes for the concurrent resolution, the Carbone bill, another related proposal, did involve fiscal considerations.

The discussion also highlighted differences between the bills. Representative Carbone's proposal aims to provide benefits to all 100% disabled veterans, while Collinan's bill specifically targets combat veterans. Carbone's bill includes provisions that would allow surviving spouses of deceased veterans to continue receiving property tax exemptions, a feature not present in Collinan's proposal.

The committee explored the potential impact on property taxes for other taxpayers. It was noted that the proposed exemptions could shift the tax burden to non-residential property owners, with an estimated impact of $3 million on the general fund beginning in fiscal year 2027. This raised concerns about how the changes would affect overall tax rates for property owners in Arizona.

As the meeting concluded, the committee members acknowledged the importance of supporting veterans while also considering the broader implications of the proposed tax exemptions. The discussions underscored the ongoing efforts within the Arizona legislature to address the needs of veterans and ensure they receive the benefits they deserve for their service. The next steps will involve further deliberation on the bills and potential adjustments based on the feedback received during the meeting.