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    A.R.S. § 42-11112

    Property Tax Exemption for Astronomical Observatories

    Verified May 17, 2026 • 57th Legislature, 1st Regular Session

    A.R.S. § 42-11112 exempts property used as an astronomical observatory in Arizona. The narrow exemption supports the state's role as a center for ground-based astronomy.

    Title 42, PROPERTY TAX

    azleg.gov

    Scope note: RJP Estate Planning is not a law firm; legal services are provided by the licensed Arizona attorneys we partner with. RJP helps Arizona families with living trusts, wills, powers of attorney, and probate avoidance. Property tax matters are outside the scope of RJP’s services, and this page explains Arizona law for educational purposes only.

    What This Statute Says

    A.R.S. § 42-11112 exempts property used as an astronomical observatory in Arizona. The narrow exemption supports the state's role as a center for ground-based astronomy.

    Observatories that are maintained for astronomical research and education for the public welfare and property that is used in the work or maintenance of observatories, including property held in trust, are exempt from taxation if the observatories and other property are used only for those purposes and are not used or held for profit.

    A.R.S. § 42-11112

    This is one of the most specific property tax exemptions in Arizona. The state hosts several major observatories, and the legislature chose to keep them off the tax rolls. The exemption requires actual use as an observatory.

    For estate planning, the statute is rarely directly relevant. It can apply when a family foundation or estate gifts land near a dark-sky preserve for observatory use.

    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.

    42-11112. Exemption for observatories Observatories that are maintained for astronomical research and education for the public welfare and property that is used in the work or maintenance of observatories, including property held in trust, are exempt from taxation if the observatories and other property are used only for those purposes and are not used or held for profit.

    This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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