Arizona's HB 2804 creates a new tax credit to support rural affordable housing development. It allows taxpayers (primarily developers or investors in qualifying projects) to claim a credit against their state insurance premium tax for projects in counties with under 800,000 residents that also qualify for federal low-income housing tax credits. The credit amount matches the state's allocation for each project, capped at $2 million annually through 2036, and requires an eligibility statement from the Arizona Department of Housing. Taxpayers can offset the credit against premium tax liability, carry forward unused portions for up to five years, and the program includes annual reporting requirements for the department.
HB 2383 amends Arizona law to clarify how school districts can lease property, including for housing development under specific existing rules. It requires school districts to set annual fee schedules for leases, prohibits discrimination based on beliefs, and mandates proof of liability insurance for lessees. The bill specifies that housing development leases must comply with Section 15-342, paragraph 6 (not creating new housing authority), while preserving existing teacher housing and permanent teacherage fund provisions. Monies from leases must go to a "civic center school fund" for approved community uses, not general district funds. This affects all Arizona school districts managing property leases.
HB 2120 amends Arizona's property tax law to expand exemptions for specific groups: widows/widowers, people with total permanent disabilities, and veterans with disabilities. It provides full tax exemption for veterans with 100% service-connected disability (and surviving spouses using the home as primary residence), and a partial exemption of $4,188 for others based on their disability rating percentage. To qualify, applicants must meet income limits ($34,901-$41,870 depending on children) and file annual affidavits with county assessors. The exemption amounts and income thresholds will adjust annually based on GDP and housing index changes. This directly affects eligible Arizona residents seeking relief on their primary residence property taxes.
HB 2026 requires developers to obtain a "certificate of assured water supply" or a written commitment from a designated water provider before selling subdivided lands in Arizona's active management areas. It directly affects land developers and real estate sellers in these areas, mandating proof of water availability for new subdivisions. Key provisions include designating cities/towns with Central Arizona Project water contracts as automatically qualifying for "assured water supply" status, requiring the director to notify local officials of designations, and allowing gray water systems to reduce water demand requirements. The bill is currently pending (prefiled in 2025, first reading in 2026) and does not apply to mineral or industrial developments.
HB 2792 creates property tax exemptions for Arizona veterans with disabilities and certain other groups. Veterans with a 100% service-connected disability rating get full exemption on their primary residence, while those with lower ratings (service or non-service connected) receive a partial exemption capped at $4,188, adjusted by their disability percentage. Widows, widowers, and people with total permanent disabilities also qualify for a $4,188 exemption, subject to income limits of $34,901-$41,870 depending on household size. The exemption amounts and income thresholds automatically adjust annually based on inflation metrics. This bill directly affects eligible veterans, their surviving spouses, and qualifying widows/widowers by reducing their property tax burden.
