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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
property tax exemption; religious activities
Purpose
Expands the
property tax exemption for property used for
religious worship to include property owned by a nonprofit organization that is
used for religious-related activities, which includes worship, education and
housing.
Background
All property in Arizona is subject to taxation with certain
exemptions outlined in the Arizona Constitution and prescribed by statute.
Property or buildings, including land, improvements, furniture and equipment, that are used or held primarily for religious
worship are exempt from property tax, provided that the property is not used or
held for profit. When initially claiming the
exemption, the nonprofit organization that owns the property must file with the
county assessor an affidavit of eligibility and evidence
of the organization's tax-exempt status (A.R.S.
ยงยง 42-11002 and 42-11109).
If expanding the property tax exemption for property used for religious worship to include property used primarily for religious-related activities, rather than only for religious worship, results in a tax shift that affects the obligations of the state, there may be a fiscal impact to the state General Fund.
Provisions
1. Expands the property tax exemption for property used for religious worship to property and buildings, including land, improvements, furniture, fixtures and equipment, owned by a nonprofit organization that are used or held primarily for religious-related activities, rather than only for religious worship.
2. Defines religious-related activities to include worship, education and housing.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
February 12, 2025
MG/AL/ci