Tucson Botanical Gardens, Inc. v. Pima County

In Tucson Botanical Gardens, Inc. v. Pima County, 218 Ariz. 523, 189 P.3d 1096 (App. 2008) the issue was whether the Tucson Botanical Gardens, "a qualified non-profit charitable organization, was entitled to this exemption on the portion of its property it used to operate a gift shop, exhibit art for sale, and rent to third parties for . . . weddings, private meetings, or parties." Id. at P 1. The County argued that Tucson Botanical Gardens "lost its right to claim the exemption on the gift shop and meeting areas because it is using this space for non-exempt activities." Id. at P 10. The Court disagreed. Id. In doing so, we noted that the County had focused on the "incidental" uses and "failed to take into account the primary use" made of the premises. Id. The Court held that "as long as the taxpayer's principal or primary use of its property is for the designated exempt purpose, the taxpayer is entitled to the exemption notwithstanding its occasional or incidental use of its property for other purposes." Id.