AZ SB1268

Veterans with a 100% service-connected disability rating from the U.S. Department of Veterans Affairs receive a full property tax exemption on their primary residence, changed from exemption on general "property."

Surviving spouses of veterans who had the 100% disability exemption may continue claiming the full exemption on their own primary residence as long as they do not remarry.

Primary residences owned jointly by an eligible veteran and their spouse are treated as if owned solely by the veteran for purposes of the exemption.

Property tax exemptions under the three categories (widows/widowers, persons with total and permanent disabilities, and veterans with disabilities) are explicitly stated to be mutually exclusive—individuals can only claim one category even if eligible for multiple.

The act applies to tax years beginning after December 31, 2025 and is designated as an emergency measure effective immediately.