It involves completing a form and submitting it to the county recorder's office. The Arizona homestead exemption is automatic, meaning that no written claim is required.What is Arizona's Homestead Exemption? Provide each student with a photocopy of each of the featured documents, and make a transparency with the following questions: What types of documents are they? The Arizona homestead exemption is automatic you don't have to file a homestead declaration to claim the homestead exemption in bankruptcy. More information on the Homestead Exemption may be found in the Department publication entitled Overview of the Arizona Property Tax System . 4. The County Assessor may require that a Veterans Administration (VA) VA. Benefit Summary Letter accompany the initial affidavit. The new law increased certain statutory exemptions including the homestead exemption. Instead establishes exemptions specific to Arizona residents.2. The homestead can't exceed one acre in a city or 160 acres in a rural area.