42-11131

42-11131. Exemption for low income Indian
housing; definitions

A. Property owned and operated by a federally recognized Indian tribe or its
tribally designated housing authority is exempt from taxation, subject to the following
requirements:

1. The property must be used exclusively for the charitable purpose of providing
low income rental housing and related facilities for the use of Indians.

2. The property may not be used, held or operated for profit.

3. No part of the net earnings of the housing authority, if any, may inure to the
benefit of any private shareholder or individual.

4. The housing was designed and constructed, in whole or in part, using federal
financial assistance pursuant to the Native American Housing assistance and
self-determination act (P.L. 104-330; 25 United States Code chapter 43) or using tribal
government monies.

B. To apply for an initial exemption under this section, an Indian tribe or tribal
housing authority must submit the following documents to the county assessor:

1. Documents establishing the federal recognition of the Indian tribe.

2. Documents establishing that the housing authority, if any:

(a) Is formally designated by the tribe for the purposes of owning and operating
rental housing facilities for Indians.

(b) Is recognized as a charitable institution pursuant to section 501(c)(3) of the
internal revenue code.

3. Legally binding documents that establish a current agreement or other
restriction that limits the property's use to low income rental housing and related
facilities for Indians.

C. An Indian tribe or tribal housing authority that submits the documentation
required by subsection B of this section for initial tax exempt status is exempt from the
requirement of filing subsequent affidavits under section 42-11152 until the property is
conveyed to a new owner or is no longer used for the qualifying purposes under subsection
A, paragraph 1 of this section. If any part of the property is conveyed to a new owner or
is no longer used for those qualifying purposes, or if any legal or equitable interest in
any part of the property is conveyed to a new owner, the tribe or housing authority shall
notify the assessor of the change in writing.

D. This section shall not be interpreted to prevent an Indian tribe or tribal
housing authority from making voluntary payments in lieu of property taxes to a county,
city, town, school district or other political subdivision for providing services,
improvements or facilities for the benefit of a low income housing project owned and
operated by the tribe or housing authority. Any payments in lieu of tax may not exceed
the maximum amount permitted under applicable federal law, if any, or the estimated cost
to the county, city, town, school district or other political subdivision of the
services, improvements or facilities to be provided, whichever is less.

E. For the purposes of this section:

1. "Indian" has the same meaning prescribed in 25 United States Code section 4103.

2. "Indian tribe" has the same meaning prescribed in 25 United States Code section
4103.

3. "Low income rental housing" means housing for individuals or families having an
income that does not exceed the income for a low income family, as defined in 25 United
States Code section 4103.

4. "Related facilities" means nonhousing facilities that are located on the low
income housing property and that are available for the use of Indian tenants in
conjunction with their use of the housing facilities.