Arizona Revised Statutes

Ariz. Rev. Stat. § 42-11154 (2026)

Establishing nonprofit status

✓ current as of May 2026
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For the purposes of article 3 of this chapter:

1. Nonprofit organization status may be established by a letter of determination issued in the organization's name by the United States internal revenue service recognizing the organization's tax-exempt status under section 501 of the internal revenue code, except that:

(a) A church, synagogue, temple, mosque or similar organization is not required to provide a letter of determination to establish its status as a tax-exempt organization.

(b) If the nonprofit organization is included in a group exemption letter by the internal revenue service, the group exemption letter satisfies the requirement under this paragraph provided the central organization that received the group exemption from the internal revenue service provides a letter certifying that the nonprofit organization is included in the group exemption.

(c) An organization that meets the requirements of section 501(c)(3) of the internal revenue code but that is exempt from the notification requirements pursuant to section 508(c) of the internal revenue code shall not be required to provide a letter of determination from the internal revenue service.

2. The requirement that property is not used or held for profit may be met by a letter of determination described in paragraph 1 of this section and issued in the name of the organization holding title to the property and for each organization using the property.

Notes of Decisions
Cited in 3 cases, 2006–2013 · leading case: Tucson Botanical Gardens, Inc. v. Pima Cnty., 189 P.3d 1096 (Ariz. Ct. App. 2008).
Tucson Botanical Gardens, Inc. v. Pima Cnty., 189 P.3d 1096 (Ariz. Ct. App. 2008). · cites it 22× “§ 42-11154 (2006) to provide a method for determining an organization’s nonprofit status and how the “not used or held for profit” property requirement may be met under the exemption article of the tax statutes, and thus, A.R.S. § 42-11116. ¶ 17 Section 42-11154 reads as…”
Church of the Isaiah 58 Proj. of Arizona, Inc. v. La Paz Cnty., 314 P.3d 806 (Ariz. Ct. App. 2013). · cites it 2× “See A.R.S. § 42-11154(1) (non-profit status may be shown by I.”
Volunteer Ctr. of So. Az. v. Staples, Ford, Pima Co., 147 P.3d 1052 (Ariz. Ct. App. 2006). · cites it 12× “The Center counters that, as illustrated by A.R.S. §§ 42-11154 and 42-11155, Arizona’s property tax exemption scheme clearly provides a tax exemption for property owned by one nonprofit organization and used by another.”
— Ariz. Rev. Stat. § 42-11154(1) — 2 cases
Church of the Isaiah 58 Proj. of Arizona, Inc. v. La Paz Cnty., 314 P.3d 806 (Ariz. Ct. App. 2013). “See A.R.S. § 42-11154(1) (non-profit status may be shown by I.”
Volunteer Ctr. of So. Az. v. Staples, Ford, Pima Co., 147 P.3d 1052 (Ariz. Ct. App. 2006). “The Center counters that, as illustrated by A.R.S. §§ 42-11154 and 42-11155, Arizona’s property tax exemption scheme clearly provides a tax exemption for property owned by one nonprofit organization and used by another.”
— Ariz. Rev. Stat. § 42-11154(2) — 2 cases
Tucson Botanical Gardens, Inc. v. Pima Cnty., 189 P.3d 1096 (Ariz. Ct. App. 2008). “§ 42-11154 (2006) to provide a method for determining an organization’s nonprofit status and how the “not used or held for profit” property requirement may be met under the exemption article of the tax statutes, and thus, A.R.S. § 42-11116. ¶ 17 Section 42-11154 reads as…”
Volunteer Ctr. of So. Az. v. Staples, Ford, Pima Co., 147 P.3d 1052 (Ariz. Ct. App. 2006). “The Center counters that, as illustrated by A.R.S. §§ 42-11154 and 42-11155, Arizona’s property tax exemption scheme clearly provides a tax exemption for property owned by one nonprofit organization and used by another.”
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