AZ SB1122

Amends property tax exemption amounts for widows, widowers, persons with total and permanent disabilities, and veterans with disabilities to adjust annually based on inflation metrics

Exemption amount remains $4,188 if total assessment does not exceed a threshold amount that adjusts yearly by GDP price deflator

Beginning in tax year 2026, the total assessment limit threshold adjusts based on the federal house price index instead of GDP price deflator for determining eligibility

Annual income limits for exemption qualification ($34,901 without dependent children; $41,870 with dependent children) adjust yearly based on GDP price deflator

Department of Revenue must calculate and implement all inflation adjustments by December 31 of each year using the average annual percentage increase in specified economic indicators from the two most recent complete state fiscal years