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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
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 and education and housing that are used for religious or charitable purposes.
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.
§§ 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 and education and housing that are used for religious or charitable purposes.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Specifies that religious-related activities include worship and education and housing that are used for religious or charitable purposes.
Senate Action
FIN 2/17/2025 DPA 5-1-1
Prepared by Senate Research
February 12, 2025
MG/AL/ci