The Arizona homestead exemption is automatic, meaning that no written claim is required. The Arizona homestead exemption is automatic you don't have to file a homestead declaration to claim the homestead exemption in bankruptcy.Application for Property Tax Exemption. To establish eligibility for property tax exemption, the claimant must sign and file an affidavit with the County. What is Arizona's Homestead Exemption? It involves completing a form and submitting it to the county recorder's office. WHERE TO FILE: This document, and all supporting documentation, must be filed with the appraisal district in the county in which your property is located. The Department recognizes three categories of property tax exemption: General. Restricted, and Individual. Like the homestead exemption, only school districts are required to offer this exemption.