State of Arizona
House of Representatives
First Regular Session
HOUSE BILL 2446
amending sections 42-11109, 42-11153 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 use, including land, improvements, furniture and equipment, are exempt from taxation if the property is not used or held for profit.
B. Vacant land that is held by a religious association or institution but iS not currently being used primarily for religious use is exempt from taxation if both of the following are true:
1. The property is not used or held for profit.
2. The religious association or institution certifies annually or less often as required by the county assessor in writing to use the property primarily for religious use within a reasonable time. Holding property to sell for a profit at a later date is not considered religious use even if the proceeds from the sale will be used to further the religious association or institution's religious mission.
B. C. 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 that qualifies for exemption under subsection a or b of this section, the county assessor, on request, shall issue a receipt for the affidavit.
C. D. 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 no longer qualifies for exemption under subsection a or b of this section. At that time the organization shall notify the assessor of the change in writing.
D. E. A nonprofit organization that obtains title to property that was previously owned by another nonprofit organization and used primarily for religious worship that qualified for exemption under subsection a or b of this section shall comply with the requirements of section 42‑11152 to qualify and establish eligibility for exemption.
E. F. If a nonprofit organization that holds title to property used primarily for religious worship qualified for exemption under subsection a or b of this section 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 42-11153, Arizona Revised Statutes, is amended to read:
42-11153. Deadline for filing affidavit
A. Except as provided in section 42-11104, subsection E, section 42‑11109, subsection B C, section 42‑11110, subsection B, section 42‑11111, subsection H, section 42‑11131, subsection C and section 42‑11132, subsection C, a failure by a taxpayer who is entitled to an exemption to make an affidavit or furnish evidence required by this article between the first Monday in January and March 1 of each year constitutes a waiver of the exemption.
B. If a widow, widower or disabled person whose property is exempt from tax under section 42‑11111, or an organization that is exempt from federal income tax under section 501(c) of the internal revenue code and is exempt from property tax under article 3 of this chapter, submits a petition after the deadlines prescribed by subsection A of this section, the person or organization may have the waiver redeemed by the county board of supervisors at any regular meeting, except that no taxes that were due and payable before the petition was submitted may be refunded or abated.
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.