|Income Tax Exemption|
|Arizona law exempts non-profit hospitals from state income tax.
Two separate provisions of Arizona law exempt nonprofit hospitals from state income tax. Arizona exempts from state income tax organizations that are exempt from federal income tax pursuant to Internal Revenue Code §501.
In addition, Arizona exempts corporations organized for charitable purposes from state income tax provided, among other things, that no substantial part of their activities consists of “carrying on propaganda or attempting to influence legislation.” Ariz. Rev. Stat. §43-1201 (A)(4).