Arizona Enacts Comprehensive Tax Reform: Expanded Exemptions, Property Tax Adjustments, and Income Tax Changes

• Arizona enacted a comprehensive tax reform bill with significant changes to the tax code.
• Expanded exemption under the Transaction Privilege Tax and use tax for pipes and valves used in transporting wastewater, effective October 1, 2025.
• Adjustments to property tax exemptions for veterans with disabilities, effective September 26, 2025.
• Full property tax exemption for veterans with 100 percent service-connected disability and their surviving spouses.
• Partial exemptions for veterans with nonservice-connected disabilities or less than 100 percent service-connected disability.
• Excludes all veterans’ pensions from income calculations for exemption purposes.
• Maximum exemption for agricultural and business property increased to $500,000, effective after December 31, 2025.
• Expanded individual income tax subtraction for adoption-related expenses, effective from or after December 31, 2025.
• Increased subtraction limits for single individuals, heads of household, and married couples.
• Extended public school income tax credit eligibility period through June 30, 2029.

Source: vitallaw.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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