What This Statute Says
A.R.S. § 42-11105 exempts property of nonprofit hospitals, health care institutions, and certain residential care facilities. The institution must be operated for charitable purposes, not for private gain, to claim the exemption.
A. Hospitals for the relief of the indigent or afflicted, appurtenant land and their fixtures and equipment are exempt from taxation if they are not used or held for profit.
A.R.S. § 42-11105Arizona favors nonprofit health care with a property tax exemption. The exempt category includes general hospitals, hospices, skilled nursing facilities, and certain assisted-living operations. Each must be organized as a nonprofit and operated for public benefit.
For estate planners working with charitable bequests to hospitals or health systems, the statute confirms that real property gifted to a qualifying nonprofit hospital comes off the tax rolls once title transfers.
When This Statute Comes Into Play
This statute typically becomes relevant in three situations. A property owner is reviewing an annual tax bill. An estate is being administered and the personal representative has to address ongoing property tax obligations. Or a charitable or nonprofit organization is claiming or maintaining an exemption. The statute is part of a larger framework in chapter 11 of title 42 and operates alongside the related sections cross-linked below.
What This Means for Arizona Families
Most families never think about Arizona property tax statutes until they are sitting at a closing table on an inherited home, reviewing an unexpected tax bill, or trying to claim an exemption for a surviving spouse. When that moment arrives, the rules in chapter 11 of title 42 are the framework you are working inside.
If you are holding real property in a revocable living trust, the trust structure does not by itself remove the property from the tax rolls. The exemption has to come from a specific statute. Our FAQ on what to do with property you inherit in Arizona covers the immediate practical questions, and our FAQ on probate timelines covers how a contested or stalled administration can affect tax filings and exemptions.
If you are administering an estate, the personal representative has a duty to keep property taxes current, to claim available exemptions where appropriate, and to maintain documentation in case the assessor reviews a claim later. Calendar the February exemption filing window each year for any property where a widow, widower, or disability exemption applies. Once the deadline passes, the saving for that year is usually lost.