What This Statute Says
A.R.S. § 42-11133 exempts qualifying affordable housing projects from Arizona property tax. The project must be owned by a qualifying nonprofit or governmental entity and must serve households at or below specified income limits.
1. The property is owned and operated by, or is a wholly owned subsidiary of, a corporation that is qualified pursuant to section 501(c)(3) or 501(c)(4) of the internal revenue code or a limited partnership or limited liability company in which the general partner or the managing member, as applicable, is an eligible nonprofit corporation or a single purpose entity that is wholly owned by one or more eligible nonprofit corporations.
A.R.S. § 42-11133Affordable housing in Arizona depends on this exemption to pencil out financially. The exemption applies to qualifying nonprofit-owned projects and to certain public-private partnerships that meet the income limits.
For families considering a charitable bequest to an affordable housing developer, the recipient organization holds the donated property tax-free as long as it continues to qualify under the income standards.
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.