property tax; exemption; veterans.

SB 1268 modifies Arizona's property tax exemption rules to expand benefits for veterans with disabilities. It provides full tax exemption on a veteran's primary residence if they have a 100% service-connected disability rating from the VA, and allows surviving spouses to maintain this exemption if they don't remarry. Veterans with disabilities rated below 100% receive a partial exemption capped at $4,188, adjusted by their disability percentage. To qualify, applicants must meet income limits ($34,901-$41,870 depending on dependents) and file annual affidavits with county assessors, with exemption amounts adjusted annually for inflation.