Hillman v. Flagstaff Community Hospital

OPINION

HAIRE, Judge.

On this appeal we must determine whether the trial court erred in finding that two lots owned by the appellee hospital were exempt from taxation pursuant to the provisions of A.R.S. § 42-271(4).

The two lots comprise about one-third of an acre and adjoin each other, but are not contiguous or adjacent to the property upon which appellee’s hospital is situated. They are located approximately two city blocks from the hospital itself, and were not subjected to any actual physical use by the hospital during the tax year in question. The parties have stipulated that the lots were…