AZ HB2672

Restructures property tax exemptions for veterans with disabilities by creating separate categories: full exemption for 100% service-connected disabilities and $4,188 exemption (adjusted by disability percentage) for veterans with nonservice-connected or lower-rated service-connected disabilities.

Allows surviving spouses of 100% service-connected disabled veterans to continue claiming the full exemption if they remain unmarried and use the property as their primary residence.

Maintains $4,188 exemption for widows, widowers, and persons with total and permanent disabilities, subject to a $28,459 property assessment limit and income limits of $34,901 (no dependent children) or $41,870 (with dependent children).

Expands the definition of excluded income to explicitly include all veterans disability pensions and changes language from "disability pensions" to "any veterans pensions."

Requires annual adjustment of exemption amounts and assessment limits based on the GDP price deflator for the two most recent complete state fiscal years.