AZ HB2230

Creates a new property tax exemption for Arizona veterans with service-connected disabilities based on disability rating: 100% exemption for 90%+ rated disabilities, scaling down to 10% exemption for disabilities rated under 10%

Phases in the exemption over four years: 25% of the allowed amount in year one, increasing to the full amount by year four

Allows surviving spouses of eligible veterans to continue claiming the exemption at the rate the veteran received, provided they use the property as their primary residence and do not remarry

Establishes a state reimbursement system to compensate school districts and fire districts for 100% of foregone revenue and counties for 50% of foregone revenue resulting from the exemption

Makes falsifying a VA disability rating to obtain the property tax exemption a class 6 felony under the state's veteran impersonation statute, effective for tax years beginning after December 31, 2026