Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1298
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