42-11131. Exemption for low-income Indian housing; definitions

A. Property owned and operated by a federally recognized Indian tribe or its tribally designated housing authority is exempt from taxation, subject to the following requirements:

1. The property must be used exclusively for the charitable purpose of providing low-income rental housing and related facilities for the use of Indians.

2. The property may not be used, held or operated for profit.

3. No part of the net earnings of the housing authority, if any, may inure to the benefit of any private shareholder or individual.

4. The housing was designed and constructed, in whole or in part, using federal financial assistance pursuant to the Native American Housing assistance and self-determination act of 1996 (P.L. 104-330; 25 United States Code chapter 43) or using tribal government monies.

B. To apply for an initial exemption under this section, an Indian tribe or tribal housing authority must submit the following documents to the county assessor:

1. Documents establishing the federal recognition of the Indian tribe.

2. Documents establishing that the housing authority, if any:

(a) Is formally designated by the tribe for the purposes of owning and operating rental housing facilities for Indians.

(b) Is recognized as a charitable institution pursuant to section 501(c)(3) of the internal revenue code.

3. Legally binding documents that establish a current agreement or other restriction that limits the property’s use to low-income rental housing and related facilities for Indians.

C. An Indian tribe or tribal housing authority shall notify the county assessor in writing pursuant to section 42-11152 if the property is conveyed to a new owner or is no longer used for the qualifying purposes under subsection A, paragraph 1 of this section or if any legal or equitable interest in any part of the property is conveyed to a new owner.

D. This section shall not be interpreted to prevent an Indian tribe or tribal housing authority from making voluntary payments in lieu of property taxes to a county, city, town, school district or other political subdivision for providing services, improvements or facilities for the benefit of a low-income housing project owned and operated by the tribe or housing authority. Any payments in lieu of tax may not exceed the maximum amount permitted under applicable federal law, if any, or the estimated cost to the county, city, town, school district or other political subdivision of the services, improvements or facilities to be provided, whichever is less.

E. For the purposes of this section:

1. "Indian" has the same meaning prescribed in 25 United States Code section 4103.

2. "Indian tribe" has the same meaning prescribed in 25 United States Code section 4103.

3. "Low-income rental housing" means housing for individuals or families having an income that does not exceed the income for a low-income family, as defined in 25 United States Code section 4103.

4. "Related facilities" means nonhousing facilities that are located on the low-income housing property and that are available for the use of Indian tenants in conjunction with their use of the housing facilities.