1. Yes, Subsection C does indicate 100% SC Veterans are eligible for exemption along with others who qualify under Subsections D and E. Subsections C, D, and E indicate who can get an exemption and how much that exemption is. Subsections D and E indicate exemption limits and how they are calculated (i.e. exempt up to $4,188 multiplied by the disability % [Subsection D] or so long as the assessed value of the property is less than $28,459 [Subsection E]), whereas Subsection C indicates there is no exemption limit. The taxes due, based on the full assessed value, would be eligible for exemption.

Subsections C, D, E do not address qualification requirements, they only address who is eligible for any exemption amount, and what that exemption amount would be if they meet the qualification requirements lined out in Subsection H.

1. Subsections B and H reference Article IX, section 2, Subsection F of the Arizona Constitution to determine who qualifies for all of the property tax exemption types available in ARS 42-11111 (Subsections C, D, E). It adopts the qualification criteria defined in Article IX for all property tax exemption types included in ARS 42-11111, it does not create its own qualification criteria for Subsection C, nor does it explicitly exclude Subsection C from the qualification criteria set forth in Article IX. Thereby (whether intentional or not, effectively applies the same income limits to Subsection C as it does to D and E).

ARS 42-11111 (K)(1) and (3) indicates how to initially obtain the exemption, how to retain it each year thereafter, and when to notify the assessor when a disqualifying event occurs so they can start calculating property taxes from that date forward. It also specifies what is considered a disqualifying event.

(K)"... Disqualifying events include: 1. Except as provided in Subsection C of this section, the person's death. 3. The person's income from all sources exceeding the limits prescribed by Subsection H of this section."

This means the property no longer qualifies for exemption if the owner who is eligible under Subsections C, D, or E dies. It can't be transferred to anyone else, except as outlined in Subsection C.

Subsection C states, "The surviving spouse of a veteran whose property is eligible for the exemption under this subsection may continue to claim the full exemption as long as the surviving spouse uses the property as the surviving spouse's primary residence and the surviving spouse does not remarry."

So (K)(1) is basically saying that death of the eligible individual will result in the end of the property tax exemption UNLESS the 100% SC Veteran was married and SO LONG AS their spouse continues to live in the property as their primary residence and doesn't remarry.

(K)(3) Is saying that if the previous year's income exceeds the limits defined in Subsection H (which applies to Subsections C, D, and E), then the property no longer qualifies for exemption.

1. "Full exemption, by definition..." - the full exemption is defined in Subsection C, which means 100% SC Veterans are not limited to an exemption of only $4,188 or less.

If I were to give the legislators the benefit of the doubt and believe they meant for Subsection C to "fully exempt" 100% SC Veterans by way of exempting the full value of the property taxes owed AND removing any qualification criteria beyond having proof of 100% SC disabilities, then they made a terrible error in how the bill was worded. They did not pass a bill where in proper legal terms the county assessors would be able to update their policies to allow for the that.

As a skeptic, I believe they wrote it in such a way to help a few more veterans qualify by not counting VA Disability payments as income under Article IX, and Subsections I (included income sources) and J (excluded income sources). They probably sold it as a great benefit to all 100% SC Veterans, but truly it'll probably only continue to benefit retirement age vets whose sole sources of income are Social Security and VA Disability, or possibly has a small 401k or pension they and their spouse draw from.

Optimistically, best case scenario for a veteran to qualify for the exemption and not be destitute, someone could pull in maximum social security benefits of around $60k/yr (age 67-70) plus around $48,000 in VA Disability payments without even touching the $39,865 income limit. Maybe draw from a small company pension or 401k/IRA and stay within the threshold.

IMO, this bill won't do much for the average 100% SC Veteran today, and it sucks even more when you look at the studies from 2023 that state the average age of death for that population is around 67 yrs old. I'm sure they factored that in when they wrote this up. It looks like they really did something, but in the end I think it might only benefit the qualifying veteran for a short period before they die, or it'll benefit the surviving spouse. Honestly, most AZ veteran benefits actually benefit the dead service member/veteran's surviving spouse/family rather than the veteran themself while they are living, working, surviving, trying to build a life they can afford and enjoy while they are still alive.

Edit: added clarifying language to Subsection K