42-11111. Exemption for property of widows,
widowers and disabled persons


A. The property of widows, widowers and disabled persons who are residents of this
state is exempt from taxation to the extent allowed by article IX, sections 2, 2.1, 2.2
and 2.3, Constitution of Arizona, and subject to the conditions and limitations
prescribed by this section.


B. Pursuant to article IX, section 2.3, Constitution of Arizona, the exemptions
from taxation under this section are allowed in the amount of:


1. Three thousand dollars if the person's total assessment does not exceed twenty
thousand dollars.


2. No exemption if the person's total assessment exceeds twenty thousand dollars.


C. On or before December 31 of each year, the department shall increase the
following amounts based on the average annual percentage increase, if any, in the GDP
price deflator in the two most recent complete state fiscal years:


1. The total allowable exemption amount and the total assessment limitation amount
under subsection B of this section.


2. The total income limitation amounts under subsection E, paragraphs 1 and 2 of
this section.


For the purposes of this subsection, "GDP price deflator" means the average of the four
implicit price deflators for the gross domestic product reported by the United States
department of commerce or its successor for the four quarters of the state fiscal year.


D. For the purpose of determining the amount of the allowable exemption pursuant to
subsection B of this section, the person's total assessment shall not include the value
of any vehicle that is taxed under title 28, chapter 16, article 3.


E. Pursuant to article IX, section 2.3, Constitution of Arizona, to qualify for
this exemption, the total income from all sources of the claimant and the claimant's
spouse and the income from all sources of all of the claimant's children who resided with
the claimant in the claimant's residence in the year immediately preceding the year for
which the claimant applies for the exemption shall not exceed:


1. Twenty-five thousand dollars if none of the claimant's children under eighteen
years of age resided with the claimant in the claimant's residence.


2. Thirty thousand dollars if one or more of the claimant's children residing with
the claimant in the claimant's residence were either:


(a) Under eighteen years of age.


(b) Totally and permanently, physically or mentally disabled, as certified by
competent medical authority as provided by law.


F. For the purposes of subsection E of this section, "income from all sources"
means the sum of the following, but excluding the items listed in subsection G of this
section:


1. Adjusted gross income as defined by the department.


2. The amount of capital gains excluded from adjusted gross income.


3. Nontaxable strike benefits.


4. Nontaxable interest that is received from the federal government or any of its
instrumentalities.


5. Payments that are received from a retirement program and paid by:


(a) This state or any of its political subdivisions.


(b) The United States through any of its agencies, instrumentalities or programs,
except as provided in subsection G of this section.


6. The gross amount of any pension or annuity that is not otherwise exempted.


G. Notwithstanding subsection F of this section, "income from all sources" does not
include monies received from:


1. Cash public assistance and relief.


2. Railroad retirement benefits.


3. Payments under the federal social security act (49 Stat. 620).


4. Payments under the unemployment insurance laws of this state.


5. Payments from veterans disability pensions.


6. Workers' compensation payments.


7. "Loss of time" insurance.


8. Gifts from nongovernmental sources, surplus foods or other relief in kind
supplied by a governmental agency.


H. A widow, widower or disabled person shall initially establish eligibility for
exemption under this section by filing an affidavit with the county assessor under
section 42-11152. Thereafter, the person is not required to file an affidavit under
section 42-11152, but the person or the person's representative shall annually calculate
income from the preceding year to ensure that the person still qualifies for the
exemption and shall notify the county assessor in writing of any event that disqualifies
the widow, widower or disabled person from further exemption. Regardless of whether the
person or representative notifies the assessor as required by this subsection, the
property is subject to tax as provided by law from the date of disqualification,
including interest, penalties and proceedings for tax delinquencies. Disqualifying events
include:


1. The person's death.


2. The remarriage of a widow or widower.


3. The person's income from all sources exceeding the limits prescribed by
subsection E of this section.


4. The conveyance of title to the property to another owner.


I. The exemption described by this section applies independently to:


1. The assessed valuation determined for secondary property tax purposes from the
full cash value of the property and improvements owned by the individual.


2. The assessed valuation determined for primary property tax purposes from the
limited property value of the property and improvements owned by the individual.


J. Any dollar amount of exemption that is unused in a tax year against the limited
property value of property and improvements owned by the individual may be applied for
the tax year against the value of personal property subject to special property taxes
including the taxes collected pursuant to title 5, chapter 3, article 3 and title 28,
chapter 16, article 3.


K. An individual is not entitled to property tax exemptions in the aggregate that
exceed the maximum allowed to a widow, widower or disabled person even if the person is
eligible for an exemption in more than one category.