ARIZONA STATE SENATE
Phoenix, Arizona
Exempts, from class two
property taxation (16 percent assessment ratio), community health centers operating
in medically underserved areas or populations.
Current statute exempts
property owned by a community service organization when that property is
primarily used for delivering the services of that organization. The Arizona
Association of Community Health Care Centers had previously claimed exemption
under this statute. In September of 2001, the Pima County Assessor levied a
property tax against centers in Tucson. The County Assessor stated that the
clinics were not hospitals and, therefore, not exempt under a strict
interpretation of current law. An Arizona Tax Court ruled that the clinics were
not exempt, citing the lack of evidence that the clinics’ sole purpose was to
serve the needs of the indigent or afflicted. However, the centers were
released from the property tax liability because, while the clinics were not
explicitly named as an exempt party in statute, the County Assessor took into
consideration that the centers had historically been exempted from property
tax.
S.B. 1066 exempts, from
class two property taxation (16 percent assessment ratio), community health
centers that serve medically underserved areas or populations. According to
Joint Legislative Budget Committee staff, there is no fiscal impact for this
bill.
1. Exempts, from class two property taxation (16 percent assessment ratio), community health centers that provide care in medically underserved areas or populations.
2. Provides for a general effective date.
Prepared by Senate Staff
January 24, 2002