A. An individual who meets the qualifications prescribed by this section, or the individual’s legal representative, may elect to defer property taxes on the individual’s qualifying residence for a taxable year pursuant to this article.

Terms Used In Arizona Laws 42-17302

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Property taxes: means all ad valorem taxes that are levied by all taxing jurisdictions and that become a lien on a residence, including special assessments. See Arizona Laws 42-17301
  • Real estate: includes the ownership of, claim to, possession of or right of possession to lands or patented mines. See Arizona Laws 42-11001
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Residence: means real and personal property and improvements that constitute an owner-occupied dwelling that is classified as class three pursuant to section 42-12003. See Arizona Laws 42-17301

B. To qualify for the deferral the individual shall meet all of the following requirements:

1. The individual shall be at least seventy years of age on the date the deferral claim form is filed.

2. The individual, either individually or with another individual who resides in the residence, shall own the residence or be purchasing the residence under a recorded instrument of sale or shall hold the property under the terms of a real estate trust.

3. The individual must either:

(a) Have lived in the current residence for at least six years immediately preceding the date the deferral claim form is filed.

(b) Have lived in this state for at least ten years immediately preceding the date the deferral claim form is filed.

4. The individual may not own or have any legal, equitable, beneficial or security interest in any other residence or other real property, wherever it may be located, except indirectly through an investment security, such as a mutual fund, that includes real property among its assets.

C. In the case of a married couple, both spouses shall:

1. Meet the requirements prescribed by subsection B.

2. Consent to the deferral of taxes, regardless of whether both spouses have an ownership interest in the residence.

D. In addition to the requirements prescribed by subsections B and C, the total taxable income of all persons residing in the residence for the taxable year immediately preceding the current year may not exceed ten thousand dollars.