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REFERENCE TITLE: property tax exemption; religious property |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2774 |
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Introduced by Representatives Gray R, Fillmore, Forese, Montenegro, Stevens, Senator Burges: Representatives Carter, Crandell, Fann, Harper, Judd, Kavanagh, Lesko, Mesnard, Olson, Proud, Robson, Ugenti, Senators Barto, Lewis, Melvin, Nelson, Smith
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AN ACT
Amending sections 42-11109, 42-11152 and 42-11154, Arizona Revised Statutes; relating to property tax exemptions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-11109, Arizona Revised Statutes, is amended to read:
42-11109. Exemption for religious property; affidavit
A. Property or buildings that are used or held primarily for religious worship by a religious association or institution, including land, improvements, furniture and equipment, are exempt from taxation if the property is not used or held for profit.
B. Within ten days after receiving an initial affidavit of eligibility submitted under section 42‑11152 by a nonprofit organization that owns property used primarily for religious worship or held by a religious association or institution, the county assessor, on request, shall issue a receipt for the affidavit.
C. If the organization files with the assessor evidence of the organization's tax exempt status under section 501(c)(3) of the internal revenue code, or if the organization is a church that is considered tax exempt without filing for DETERMINATION by the United States internal revenue service, the organization is exempt from the requirement of filing subsequent affidavits under section 42‑11152 until all or part of the property is conveyed to a new owner or is no longer used for religious worship. At that time the organization shall notify the assessor of the change in writing.
D. A nonprofit organization that obtains title to property that was previously owned by another nonprofit organization and used primarily for religious worship or held by a religious association or institution shall comply with the requirements of section 42‑11152 to qualify and establish eligibility for exemption.
E. If a nonprofit organization that holds title to property used primarily for religious worship or held by a religious association or institution fails to file the affidavit required by section 42‑11152 in a timely manner, but otherwise qualifies for exemption, the county board of supervisors, on petition by the organization, shall direct the county treasurer to:
1. Refund any property taxes paid by the organization for a tax year if the organization submits a claim for the refund to the county treasurer within one year after the date the taxes were paid. The county treasurer shall pay the claim within thirty days after it is submitted to the treasurer. The county treasurer is entitled to credit for the refund in the next accounting period with each taxing jurisdiction to which the tax monies may have been transmitted.
2. Forgive and strike off from the tax roll any property taxes and accrued interest and penalties that are due but not paid.
Sec. 2. Section 42-11152, Arizona Revised Statutes, is amended to read:
42-11152. Affidavit; false statements
A. Except as provided in sections 42-11104, 42‑11109, 42‑11110, 42‑11111 and 42‑11131 and except for property described in sections 42‑11125, 42‑11127 and 42-11132, a person who claims exemption from taxation under article IX, section 2, 2.1 or 2.2, Constitution of Arizona, shall:
1. When initially claiming the exemption, appear before the county assessor to make an affidavit as to the person's eligibility. If a personal appearance before the county assessor would create a severe hardship, the county assessor may arrange a mutually satisfactory meeting place to make an affidavit as to the person's eligibility.
2. When claiming the exemption in subsequent years, appear before the county assessor or a notary public to make an affidavit as to the person's eligibility.
3. Fully answer all questions on the eligibility form or otherwise required by the assessor for that purpose.
B. At the assessor's discretion, the assessor may require additional proof of the facts stated by the person before allowing an exemption. The exemption for property or buildings that are used or held by a religious association or institution under section 42-11109 should be broadly construed in favor of the taxpayer.
C. A person who is in the United States military service and who is absent from this state or who is confined in a veterans' hospital or another licensed hospital may make the required affidavit in the presence of any officer who is authorized to administer oaths on a form obtained from the county assessor.
D. A false statement that is made or sworn to in the affidavit is perjury.
Sec. 3. Section 42-11154, Arizona Revised Statutes, is amended to read:
42-11154. Establishing nonprofit status
For the purposes of article 3 of this chapter:
1. Nonprofit organization status may be established by a letter of determination issued in the organization's name by the United States internal revenue service or the department of revenue recognizing the organization's tax exempt status under section 501(c)(3) of the internal revenue code or under section 43‑1201. a church that is considered tax exempt without filing for recognition with the United STates internal revenue service is not required to present a letter of determination.
2. The requirement that property is not used or held for profit may be met by a letter of determination described in paragraph 1 of this section and issued in the name of the organization holding title to the property and for each organization using the property.