Vagharshapat Mayor Argishti Mekhakyan has provided an explanation of the decision to recover 47.5 million drams from the Armenian Apostolic Church, which the Church has challenged in court.
Mekhakyan outlined his position on the calculation of property tax liabilities and the application of tax exemptions provided for under Armenian legislation.
According to data presented by the Vagharshapat municipality, between January 1, 2021, and December 31, 2025, tax liabilities calculated for 69 properties owned by the Armenian Apostolic Holy Church religious organization within the community’s administrative boundaries totaled 118,397,492 drams. The amount includes both unpaid tax obligations and accumulated penalties, Factor.am reports.
Municipal authorities explained that tax exemptions can be granted exclusively to properties included in lists approved under existing legislation and relevant government decisions.
Following a review, 11 properties were identified as potentially eligible for statutory tax exemptions, according to the municipality’s assessment.
The list includes properties located within the Mother See of Holy Etchmiadzin, the churches of the Holy Mother of God, St. Gayane, St. Hripsime and St. Shoghakat, as well as church buildings in the settlements of Doghs, Mrgastan, Geghakert and Arshaluys.
According to municipal calculations, the total tax liabilities associated with these properties and considered eligible for exemptions amounted to 70,583,383 drams.
At the same time, tax liabilities totaling 47,551,349 drams were calculated for properties not included in the relevant exemption lists.
Thus, according to the municipality’s calculations, of the total 118,397,492 drams in tax liabilities, 70,583,383 drams were attributed to properties considered eligible for tax exemptions, while 47,551,349 drams concerned properties excluded from the approved exemption lists.
The Vagharshapat municipality also stated that, as early as 2022, the Church had been asked to provide a list of properties necessary for obtaining tax exemptions, allowing the relevant procedures to be clarified and properly implemented.
Municipal authorities maintain that the required steps were not taken within the prescribed period.
According to the municipality’s position, property tax exemptions must be granted only when the grounds established by law are met and the properties correspond to the approved lists. For properties not covered by the exemption lists, tax liabilities must be determined in accordance with the requirements of existing legislation.
On May 6, 2026, the Vagharshapat municipality initiated administrative proceedings to collect tax liabilities assessed on Church-owned properties. The Church, for its part, raised objections concerning the accuracy of the calculations. In particular, the Church argued that the submitted property list contained duplicate entries, improperly identified properties, and properties that, in its assessment, were either exempt from taxation or had previously been taken from the Church by the state.
The administrative proceedings were suspended twice before resuming on August 6. On August 7, Vagharshapat Mayor Argishti Mekhakyan issued a decision to recover 47,551,349 drams from the Armenian Apostolic Holy Church and transfer the amount to the municipal budget. On October 9, the Church filed a lawsuit with Armenia’s Administrative Court challenging the decision. On October 12, the case was assigned to Judge Mher Petrosyan.
