AZ HB2596

Exempts personal property used for agricultural purposes or in a trade or business from taxation, up to a maximum of $50,000 of full cash value per taxpayer.

Requires the Department of Revenue to annually adjust the $50,000 exemption amount based on the average annual percentage increase in the GDP price deflator over the two most recent complete state fiscal years.

Modifies class one and class two property definitions to clarify that certain personal property used in manufacturing, communications, and other commercial/industrial uses are subject to the exemption.

Defines "GDP price deflator" as the average of four implicit price deflators for gross domestic product reported by the U.S. Department of Commerce for the four quarters of the state fiscal year.

Becomes effective only if Arizona voters approve a constitutional amendment at the next general election authorizing the legislature to exempt personal property used for agricultural purposes or in a trade or business from taxation.