AZ HB2841

Creates a full property tax exemption for the primary residence of veterans with a 100% service-connected disability rating from the U.S. Department of Veterans Affairs, with the exemption continuing for surviving spouses who do not remarry.

Establishes a full property tax exemption for primary residences owned by U.S. citizens who are Arizona residents for at least three consecutive years and are at least 65 years of age.

Removes the existing full property tax exemption for 100% service-connected disabled veterans from the general exemption statute and creates a separate, standalone section specifically for this exemption.

Applies to tax years beginning after December 31, 2026, and is contingent on voters approving a constitutional amendment through a related House Concurrent Resolution at the next general election.

Disqualifies property owners from the new exemptions if the county assessor determines ownership was conveyed primarily to qualify for the exemption, and clarifies that exemptions apply only to owner-occupied primary residences (not rentals or secondary homes).