In the Az State Legislature, a bill that is trying to make it through is the lowering of property taxes when someone buys a new home. Two Questions, 1. If passed, will this lower taxes on current home

Here’s what’s currently moving through the Arizona State Legislature related to property taxes and housing — and how it would (or wouldn’t) affect current homeowners and new buyers:

📌 1. Will the bill lower taxes on current homeowners?

Not directly — at least not in the way you might think.

The major bill getting attention this session, Senate Bill 1633 (SB 1633), is not a direct property-tax reduction for current homeowners. Instead, it focuses on income tax treatment of gains when a home is sold:

• SB 1633 would allow homeowners to exclude capital gains from income tax when selling their primary residence if they’ve lived in it at least five of the prior years. That means homeowners won’t pay state income tax on the profit from the sale of their home beginning tax year 2027.

• This is not a reduction in property taxes (the annual tax based on assessed value); it’s a change to income tax rules when a home is sold.

So — current homeowners wouldn’t see their annual property tax bill go down just because of this bill. Existing taxes based on assessed value would stay the same unless other separate legislation changes how assessments or rates are set.

There are other bills this session that deal with exemptions for certain groups (like disabled veterans, etc.), but that’s different from lowering the property tax rate for all current owners.

📌 2. What does the bill include that’s supposed to help consumers/homeowners?

Here are the key consumer impacts of the legislation that’s in motion:

🏠 ✔️ Capital Gains Tax Relief on Home Sales (SB 1633)

• Reduces financial burden when selling a home: Sellers won’t pay Arizona income tax on the capital gain from selling their primary residence (if lived in 5+ years), under proposed rules.

Encourages mobility: Supporters argue it can help homeowners move (downsizing, relocating for work) without a tax penalty that could otherwise discourage sales — which in turn might help free up homes for new buyers.

• Could help affordability indirectly: By reducing tax costs on sales, it might increase turnover in the housing market, potentially easing supply issues and putting downward pressure on prices over time.

This bill is framed by supporters as helping families and seniors keep more of their equity when they sell and making it easier to sell and move — not as a cut to the annual property tax everyone pays to local governments.

🧠 What This Doesn’t Do (But You Might Be Asking)

❌ It does not automatically reduce property tax bills simply because someone bought a new home. Property taxes are set locally and based on assessed values and tax rates; this bill doesn’t change that process for existing homeowners.

❌ It doesn’t change the assessed value method or annual tax levy directly. There are other bills dealing with exemptions for veterans/disability or adjustments to exemptions, but none is a universal property tax cut on purchase.

💡 Summary

Question	Answer
Will it lower current homeowners’ property taxes?	No — not directly. The bill discussed doesn’t change annual property taxes.
What benefit does the bill provide?	It eliminates state income tax on capital gains from selling a primary home after long-term ownership, helping sellers keep more money and potentially making the market more fluid for buyers.