SB 1120 - Assessor's Valuations; Special Districts; Petitions

This bill clarifies that both real and personal property are included in the total assessed valuation for the purpose of forming special districts, such as fire or hospital districts. It also defines how valuation is determined — using full cash value for DOR-assessed property and limited property value for assessor-assessed property — ensuring consistency across jurisdictions.

SB 1122 - Property Tax Exemptions; Inflation Adjustment

This legislation modifies the method to annually increase the property assessment limit for the Personal Exemptions program.

The Personal Exemptions program is a statewide initiative to lower the property tax bill for widows/widowers, totally disabled individuals, and disabled veterans who meet all the program’s qualifications, including a limit on their property’s assessed value.

Prior to SB 1122, the property valuation limit was updated by using the average GDP increases from the last two state fiscal years. This bill changes that calculation methodology to be based on the Federal House Price Index instead of GDP.

“GDP increases are not tied specifically to the housing market,” said Cook. “Relying on that information for the Personal Exemptions’ property valuation cap made the threshold unrealistically low. It prohibited individuals from accessing this program who would otherwise qualify and pushed people out if they no longer met the criteria. This is a practical solution that will positively impact some of our most vulnerable residents.”

SB 1224 - Property Tax; Limited Property Value

Spearheaded by Assessor Cook, this legislation ensures that properties previously under Senior Valuation Protection are correctly reassessed when eligibility ends or ownership changes.

Senior Valuation Protection (SVP) enables eligible elderly homeowners to freeze the taxable Limited Property Value (LPV) of their property for a period of up to 3 years. Property owners can renew their application at that point, and if they still qualify, the timeline resets.

SB 1224 addresses the instances when one of these homes is sold, ownership changes, or the property owner no longer qualifies.

In Arizona, property taxes are applied to the LPV, which typically can only increase by up to 5% each year unless a triggering event prompts a recalculation. In those cases, the LPV gets reset based on a formula known as Rule B.

Before SB 1224, the new owner of a property that had received SVP protection could benefit from that previously frozen LPV as it would serve as the starting point for the standard 5% LPV increase.

This new legislation mandates the application of Rule B in such occurrences, which resets the LPV to a level comparable to similar properties in the area.

“One of our office’s core values is providing fair and equitable valuations,” said Cook. “Suppose there are two neighbors with very similar houses, but one purchased theirs after it had its LPV frozen for several years. That could create a significant disparity between the two home’s values and property tax bills. This law will help alleviate that gap and promote fairness for all property owners across Arizona.”

SB 1549 - Conservation Easements; Valuation

This bill states that county assessors or the Department of Revenue must use standard appraisal methods to determine the Full Cash Value of land with conservation easements — unless a statutory formula applies. This ensures consistent valuation practices across counties and fair taxation of properties preserved for public benefit, including natural habitat, farmland, and recreational areas.

“Each of these bills reflects a commitment to modernizing Arizona’s property tax laws, aligning assessments with best practices, and improving transparency for both residents and local governments,” said Cook.

These statutes will go into effect on the General Effective Date, Sept. 26, 2025.