Property Tax Relief for Arizona’s Senior Citizens

 

The American Dream Act Arizona eliminates property taxes on the Arizona primary legal residence of United States citizens over the age of 65.

This is a Citizens Initiative and constitutional amendment so we need to collect about 360,000 valid petition signatures from registered voters throughout the state in order to qualify for the 2020 ballot.

The American Dream Act Arizona adds this text to the Arizona Constitution:

 

(12) EFFECTIVE JANUARY 1, 2021, THERE SHALL BE FURTHER EXEMPT FROM TAXATION THE PROPERTY THAT IS THE PRIMARY LEGAL RESIDENCE OF AN OWNER WHO IS AT LEAST SIXTY-FIVE YEARS OF AGE AND WHO IS A UNITED STATES CITIZEN, EITHER NATURAL BORN OR NATURALIZED AS PRESCRIBED IN THE UNITED STATES CONSTITUTION, SUBJECT TO THE FOLLOWING:

(a) TO QUALIFY FOR THIS EXEMPTION, THE OWNER MUST APPLY TO AND FURNISH DOCUMENTATION REQUIRED BY THE COUNTY ASSESSOR, INCLUDING EVIDENCE OF THE OWNER’S AGE AND CITIZENSHIP STATUS.

(b) IF THE PROPERTY IS OWNED BY TWO OR MORE PERSONS, INCLUDING A HUSBAND AND WIFE, AT LEAST ONE OF THE OWNERS MUST BE AT LEAST SIXTY-FIVE YEARS OF AGE AND A UNITED STATES CITIZEN, EITHER NATURAL BORN OR NATURALIZED AS PRESCRIBED IN THE UNITED STATES CONSTITUTION.

(c) IF THE COUNTY ASSESSOR APPROVES THE PROPERTY TAX EXEMPTION, THE EXEMPTION IS IN EFFECT UNTIL TITLE TO THE PROPERTY IS CONVEYED TO ANOTHER PERSON. THE SUBSEQUENT OWNER MUST APPLY TO THE COUNTY ASSESSOR TO RECEIVE THIS EXEMPTION.

(d) A WIDOW/WIDOWER WHO APPLIES AND QUALIFIES FOR THE EXEMPTION PROVIDED BY THIS SUBSECTION AND THE EXEMPTION PROVIDED BY SUBSECTION (11) OF THIS SECTION IS NOT SUBJECT TO THE LIMITS OR REQUIREMENTS PROVIDED BY SUBSECTION (11) OF THIS SECTION AND MAY RECEIVE THE EXEMPTION AS PROVIDED BY THIS SUBSECTION.

(e) THIS EXEMPTION DOES NOT APPLY TO PROPERTY THAT IS OWNED BY A CORPORATION, COMPANY, PARTNERSHIP, LIMITED LIABILITY COMPANY, FIRM, ASSOCIATION OR SOCIETY.

(f) FOR THE PURPOSES OF THIS SUBSECTION:

1. “OWNER” MEANS THE NATURAL PERSON WHO IS THE OWNER OF RECORD AND INCLUDES A NATURAL PERSON WHO OWNS THE MAJORITY BENEFICIAL INTEREST OF A LIVING TRUST.

2. “PRIMARY LEGAL RESIDENCE” MEANS ALL OWNER-OCCUPIED REAL PROPERTY AND IMPROVEMENTS TO THAT REAL PROPERTY IN THIS STATE THAT IS A SINGLE-FAMILY HOME, CONDOMINIUM OR TOWNHOUSE OR AN OWNER-OCCUPIED MOBILE HOME AND THAT IS USED FOR RESIDENTIAL PURPOSES.

 

 

About the Political Action Committee

 

The Prop 13 Arizona Political Action Committee, registered with the Arizona Secretary of State, is working to put the American Dream Act on the ballot.

Our committee was formed in 2006 and has been working on property tax issues ever since.  It is named after California’s Prop 13, a citizen’s initiative that changed California’s property tax laws in 1978.  The tax law is still intact today and remains very popular more than 40 years later.  A survey by the Los Angeles Times found that 90% of Republicans and 80% of Democrats and Independents would not support any change to the Prop 13 created tax laws.  Prop 13 uses the purchase price of your home as the valuation, limits valuation increases to no more than 2% per year, and caps your taxes at 1% of valuation.  When you buy your home, you know what your property tax bill will be for as long as you own your home.  When you sell, a new valuation is set with the new buyer.