AZ HB2774

Expands property tax exemption for religious organizations to include property held but not currently being used, if the organization certifies annually to the county assessor its intent to use the property for religious purposes.

Requires that unused religious property remain tax exempt only if it is not used or occupied by any person other than a religious association or institution.

Exempts churches considered tax exempt by the Internal Revenue Service without filing for formal determination from the requirement to file subsequent affidavits, unless the property is conveyed or no longer qualifies for exemption.

Allows county boards of supervisors to refund property taxes paid within one year or forgive unpaid taxes and penalties for religious organizations that failed to file required affidavits but otherwise qualify for exemption.

Clarifies that churches considered tax exempt without IRS filing do not need to present a letter of determination to establish nonprofit status for property tax exemption purposes.