Earlier this year, Arizona legislators introduced a bill that would allow churches to claim a property tax exemption on buildings they rent rather than just own. A similar bill was vetoed by Gov. Jan Brewer last year, but there’s no telling if the same thing will happen under new Governor Doug Ducey.
House Bill 2128, which was passed by the House in February and passed by the Senate this week, already exempts property “owned by an educational, religious or charitable organization… from taxation.”
However, if a church rents space from, say, a public school, they can now claim an exemption on it, too. That rule would not apply to secular non-profit groups that rent the same space.