Arizona expands property tax relief for disabled veterans

Under HB 4168, disabled veterans with a 100% service-connected disability rating can avoid paying property taxes on their primary residence.  

Carbone, who cosponsored HB 4168, said at a press conference on Wednesday that veterans with lower disability ratings will receive property tax discounts “based on their disability ratings.”

Starting in tax year 2027, Carbone said disabled veterans are no longer subject to income and home value caps.

He explained under Arizona’s old system, disabled veterans lost benefits for earning “too much or because their home value increased.”  

In addition to the property tax relief for disabled veterans, HB 4168 provides extra protection for surviving spouses.  

HB 4168 allows widows or widowers of a deceased disabled veteran to continue to receive the property tax relief from their primary residence.  

With these new property tax measures, Arizona is ranked first in America for property exemption for veterans, Carbone said, noting that before the bill, the state ranked 48th in the category.

 “Many disabled veterans continue to work hard, build careers, start businesses, support their families and strengthen their communities,” the state representative said. “We want veterans working, building businesses, putting down their roots and raising their families right here in Arizona."

Carbone said the reforms “are not just about tax policy but about helping veterans stay in their homes.”  

The state representative said a foundation of the American dream is homeownership, adding that veterans who defend Americans’ “rights and freedoms deserve every opportunity to share in that dream.”

According to Sen. David Gowan, R-Tucson, if people are willing to sign up to die for Americans’ freedoms, then Americans should do all they can to help them.

Gowan said at the press conference that 600,000 veterans live full time in Arizona, adding that when the snowbirds come to stay for a couple of months in the winter, Arizona’s veteran population exceeds California’s.

Robert Garcia, who is a veteran, said veterans have been asking for this type of legislation for a long time. He noted it will help veterans stay in their homes and attract veterans to Arizona who are looking for jobs.

"The property tax exemption will help considerably," said Cheryl Schmidt, who teaches nursing at Arizona State University and is a disabled veteran of the Vietnam War.

Schmidt, 77, said most disabled veterans around her age are not working, so “they really need that property tax exemption.”

State House Democratic Whip Stacey Travers told The Center Square Wednesday that “disabled veterans' property tax relief helps ease the financial burden on veterans with service-connected disabilities.”

“This support recognizes their service and sacrifice, helps make homeownership more affordable, and frees up income for essential expenses like healthcare, home modifications and daily living costs, contributing to greater financial stability and quality of life,” said Travers, a U.S. Army veteran.

“I was glad we could get it done this year especially as inflation continues to drive up costs all around the country,” she added.