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    A.R.S. § 42-11131

    Property Tax Exemption for Low-Income Indian Housing

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

    A.R.S. § 42-11131 exempts property used to provide low-income housing for members of federally recognized tribes. The exemption requires the housing to meet federal income standards.

    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. § 42-11131 exempts property used to provide low-income housing for members of federally recognized tribes. The exemption requires the housing to meet federal income standards.

    1. The property must be used exclusively for the charitable purpose of providing low-income rental housing and related facilities for the use of Indians.

    A.R.S. § 42-11131

    Tribal housing authorities and affiliated nonprofits hold qualifying low-income housing tax-free under this statute. The exemption is structured to align with federal Indian housing programs.

    For estate planning involving tribal members or families with ties to tribal housing programs, the statute supports the long-term affordability of tribal housing developments.

    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.

    42-11131. Exemption for low-income Indian housing A. Property owned and operated by a federally recognized Indian tribe or its tribally designated housing authority is exempt from taxation, subject to the following requirements: 1. The property must be used exclusively for the charitable purpose of providing low-income rental housing and related facilities for the use of Indians. 2. The property may not be used, held or operated for profit. 3. No part of the net earnings of the housing authority, if any, may inure to the benefit of any private shareholder or individual. 4. The housing was designed and constructed, in whole or in part, using federal financial assistance pursuant to the Native American Housing assistance and self-determination act of 1996 (P.L. 104-330; 25 United States Code chapter 43) or using tribal government monies. B. To apply for an initial exemption under this section, an Indian tribe or tribal housing authority must submit the following documents to the county assessor: 1. Documents establishing the federal recognition of the Indian tribe. 2. Documents establishing that the housing authority, if any: (a) Is formally designated by the tribe for the purposes of owning and operating rental housing facilities for Indians. (b) Is recognized as a charitable institution pursuant to section 501(c)(3) of the internal revenue code. 3. Legally binding documents that establish a current agreement or other restriction that limits the property’s use to low-income rental housing and related facilities for Indians. C. An Indian tribe or tribal housing authority shall notify the county assessor in writing pursuant to section 42-11152 if the property is conveyed to a new owner or is no longer used for the qualifying purposes under subsection A, paragraph 1 of this section or if any legal or equitable interest in any part of the property is conveyed to a new owner. D. This section shall not be interpreted to prevent an Indian tribe or tribal housing authority from making voluntary payments in lieu of property taxes to a county, city, town, school district or other political subdivision for providing services, improvements or facilities for the benefit of a low-income housing project owned and operated by the tribe or housing authority. Any payments in lieu of tax may not exceed the maximum amount permitted under applicable federal law, if any, or the estimated cost to the county, city, town, school district or other political subdivision of the services, improvements or facilities to be provided, whichever is less. E. For the purposes of this section: 1. "Indian" has the same meaning prescribed in 25 United States Code section 4103. 2. "Indian tribe" has the same meaning prescribed in 25 United States Code section 4103. 3. "Low-income rental housing" means housing for individuals or families having an income that does not exceed the income for a low-income family, as defined in 25 United States Code section 4103. 4. "Related facilities" means nonhousing facilities that are located on the low-income housing property and that are available for the use of Indian tenants in conjunction with their use of the housing facilities.

    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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