Arizona lawmakers advance House Bill 2672 for veteran property tax exemptions

Arizona's Senate Finance Committee convened on March 17, 2025, to discuss significant legislation aimed at providing property tax relief for veterans with disabilities. House Bill 2672, introduced by Representative Carbone, proposes to exempt veterans rated at 100% disability and their surviving spouses from the full amount of property tax. This exemption also allows these veterans to bypass property assessment limits that typically apply.

The bill, which has garnered bipartisan support, was inspired by concerns raised by veterans in Yuma who highlighted Arizona's relatively low property tax benefits compared to other states. Representative Carbone noted that Arizona ranks near the bottom in terms of property tax exemptions for disabled veterans, with approximately 16,000 veterans in the state owning homes. The average annual property tax for these homes is around $2,500, making the proposed exemption a significant financial relief for those who have served the country.

During the meeting, discussions also touched on the fiscal implications of the bill. While some committee members raised concerns about potential cost shifts to other homeowners, Carbone and other supporters argued that the financial impact would be minimal and manageable within the broader property tax system. They emphasized that the exemption would not lead to a significant increase in taxes for other residents, as the overall property tax pie remains finite and adjustments occur naturally.

In addition to House Bill 2672, the committee reviewed House Concurrent Resolution 2023, which similarly seeks to exempt combat veterans with service-connected disabilities rated at 100% from property taxes. This resolution aims to ensure that the tax burden does not shift to other taxpayers, addressing concerns raised by committee members about the implications of such exemptions.

The committee plans to revisit these bills for a vote once all members are present, indicating a commitment to thoroughly evaluate the legislation before moving forward. The proposed measures reflect a growing recognition of the sacrifices made by veterans and a concerted effort to enhance their financial well-being in Arizona.