AZ SB1161

Amends the personal property tax exemption for agricultural and business property, capping the maximum exemption at $50,000 of full cash value per taxpayer through 2010, with adjustments beginning in 2011 based on the employment cost index instead of the GDP price deflator.

Changes the depreciation adjustment method for personal property classified in or after tax year 2008 through 2011, reducing the percentage of scheduled depreciated value used in the first four tax years (from 30-78% instead of the previous schedule).

Establishes a new, more accelerated depreciation schedule for personal property initially classified in or after tax year 2012, using lower percentages in early years (20-84% over six years) to provide greater tax relief for newer business and agricultural property.

Specifies that the additional depreciation provisions do not apply to property valued by the state department and cannot reduce valuations below the department's minimum value for property in use.