SB 167 Summary

• Changes tax exemption language for nonprofit religious, charitable, cemetery, hospital, and educational property from "exclusively" to "primarily" used for exempt purposes, allowing some non-exempt use while maintaining tax-exempt status.

• Adds provisions allowing tax-exempt property under construction or reconstruction to remain exempt if completed within two years of permit issuance, with exemption beginning when property is first occupied and used for exempt purposes.

• Establishes that exempt property remains tax-exempt when used for purposes directly incidental to and vitally necessary for the exempt use, or when used for nonexempt purposes for insubstantial periods of time.

• Modifies provisions regarding religious organizations' residences to change the standard from "solely" to "primarily" used for public worship, charitable purposes, religious offices, religious education, or nonprofit hospital purposes.

• Clarifies that parking lots primarily used to serve exempt real property are themselves exempt from taxation, and specifies income-producing exempt property maintains exemption only if income derives from nonprofit use, educational classroom space, fundraising, or leasing to accomplish exempt purposes.