Limiting Property Taxes
Putting family budgets first
Be it enacted by the People of Arizona:
1. Article IX, Section 18 and Section 19, Constitution of Arizona, are proposed to be repealed as follows ifapproved by the voters and on proclamation of the Governor.
2. Article IX, Constitution of Arizona, is proposed to be amended by adding a new Section 18 as follows if approved by the voters and on proclamation of the Governor
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Section 18.¦¦ Property tax limits; limit on increase in values; definitions
SECTION 18. (1) THE CLASSES OF PROPERTY AFFECTED BY THIS AMENDMENT ARE LIMITED TO REAL PROPERTY (BUILDINGS AND LAND).
(2) THE MAXIMUM AGGREGATE AMOUNT OF ALL STATE AND LOCAL AD VALOREM TAXES ON RESIDENTIAL PROPERTY SHALL NOT EXCEED ONE-HALF OF ONE PERCENT (0.5%) OF THE VALUE OF ANY SUCH PROPERTY DETERMINED PURSUANT TO THIS SECTION.
(3) THE MAXIMUM AGGREGATE AMOUNT OF
(4) FOR THE PURPOSES OF THIS SUBSECTION, “RESIDENTIAL PROPERTY” INCLUDES ALL OWNER OCCUPIED RESIDENTIAL REAL PROPERTY AND IMPROVEMENTS, ALL MOBILE HOMES USED FOR RESIDENTIAL PURPOSES AND ALL REAL PROPERTY AND IMPROVEMENTS USED AS LEASED OR RENTED PROPERTY PRIMARILY FOR RESIDENTIAL PURPOSES.
(5) WITHIN THIS SECTION BEGINNING WITH TAX YEAR 2011; “BASELINE FULL CASH VALUE” MEANS THE
(6) WITHIN THIS SECTION FOR TAX YEARS SUBSEQUENT TO 2011; BEGINNING WITH THE DEFINITION OF “FULL CASH VALUE” DEFINED IN SECTION 5 AS THE BASELINE, FULL CASH VALUE SHALL EQUAL THE FULL CASH VALUE OF THE PROPERTY IN THE PREVIOUS YEAR PLUS AN AMOUNT NOT TO EXCEED A TWO PERCENT (2%) INCREASE OF THE FULL CASH VALUE OF THE PROPERTY IN THE PREVIOUS YEAR.
(7) A RESIDENT OF THIS STATE WHO IS SIXTY-FIVE YEARS OF AGE OR OLDER MAY APPLY TO THE COUNTY ASSESSOR FOR A PROPERTY VALUATION PROTECTION OPTION ON THE PERSON’S PRIMARY RESIDENCE, INCLUDING NOT MORE THAN TEN ACRES OF UNDEVELOPED APPURTENANT LAND. TO BE ELIGIBLE FOR THE PROPERTY VALUATION PROTECTION OPTION, THE RESIDENT SHALL MAKE APPLICATION AND FURNISH DOCUMENTATION REQUIRED BY THE ASSESSOR ON OR BEFORE SEPTEMBER 1. IF THE RESIDENT FAILS TO FILE THE APPLICATION ON OR BEFORE SEPTEMBER 1, THE ASSESSOR SHALL PROCESS THE APPLICATION FOR THE SUBSEQUENT YEAR. IF THE RESIDENT FILES AN APPLICATION WITH THE ASSESSOR ON OR BEFORE SEPTEMBER 1, THE ASSESSOR SHALL NOTIFY THE RESIDENT WHETHER THE APPLICATION IS ACCEPTED OR DENIED ON OR BEFORE DECEMBER 1. THE RESIDENT MAY APPLY FOR A PROPERTY VALUATION PROTECTION OPTION AFTER RESIDING IN THE PRIMARY RESIDENCE FOR TWO YEARS. IF ONE PERSON OWNS THE PROPERTY, THE PERSON’S TOTAL INCOME FROM ALL SOURCES INCLUDING NONTAXABLE INCOME SHALL NOT EXCEED FOUR HUNDRED PER CENT OF THE SUPPLEMENTAL SECURITY INCOME BENEFIT RATE ESTABLISHED BY SECTION 1611(B)(1) OF THE SOCIAL SECURITY ACT. IF THE PROPERTY IS OWNED BY TWO OR MORE PERSONS, INCLUDING A HUSBAND AND WIFE, AT LEAST ONE OF THE OWNERS MUST BE SIXTY-FIVE YEARS OF AGE OR OLDER AND THE OWNERS’ COMBINED TOTAL INCOME FROM ALL SOURCES INCLUDING NONTAXABLE INCOME SHALL NOT EXCEED FIVE HUNDRED PER CENT OF THE SUPPLEMENTAL SECURITY INCOME BENEFIT RATE ESTABLISHED BY SECTION 1611(B) (1) OF THE SOCIAL SECURITY ACT. THE ASSESSOR SHALL REVIEW THE OWNER’S INCOME QUALIFICATIONS ON A TRIENNIAL BASIS AND SHALL USE THE OWNER’S AVERAGE TOTAL INCOME DURING THE PREVIOUS THREE YEARS FOR THE REVIEW. IF THE COUNTY ASSESSOR APPROVES A PROPERTY VALUATION PROTECTION OPTION, THE VALUE OF THE PRIMARY RESIDENCE SHALL REMAIN FIXED AT THE FULL CASH VALUE IN EFFECT DURING THE YEAR THE PROPERTY VALUATION PROTECTION OPTION IS FILED AND AS LONG AS THE OWNER REMAINS ELIGIBLE. TO REMAIN ELIGIBLE, THE COUNTY ASSESSOR SHALL REQUIRE A QUALIFYING RESIDENT TO REAPPLY FOR THE PROPERTY VALUATION PROTECTION OPTION EVERY THREE YEARS AND SHALL SEND A NOTICE OF REAPPLICATION TO QUALIFYING RESIDENTS SIX MONTHS BEFORE THE THREE YEAR REAPPLICATION REQUIREMENT. IF TITLE TO THE PROPERTY IS CONVEYED TO ANY PERSON WHO DOES NOT QUALIFY FOR THE PROPERTY VALUATION PROTECTION OPTION, THE PROPERTY VALUATION PROTECTION OPTION TERMINATES, AND THE PROPERTY SHALL REVERT TO ITS CURRENT FULL CASH VALUE
(8) OWNER MEANS THE OWNER OF RECORD OF THE PROPERTY AND INCLUDES A PERSON WHO OWNS THE MAJORITY BENEFICIAL INTEREST OF A LIVING TRUST.
(9) THE LEGISLATURE SHALL PROVIDE BY LAW A SYSTEM OF PROPERTY TAXATION CONSISTENT WITH THE PROVISIONS OF THIS SECTION.
(10) IF ANY SECTION, PART, CLAUSE, OR PHRASE HEREOF IS FOR ANY REASON HELD TO BE INVALID OR UNCONSTITUTIONAL, THE REMAINING SECTIONS SHALL NOT BE AFFECTED BUT WILL REMAIN IN FULL FORCE AND EFFECT.
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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
