Article 2 - Procedure to Claim Exemptions

California Revenue and Taxation Code — §§ 251-261

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Sections (35)

Amended by Stats. 1988, Ch. 1271, Sec. 4. Effective September 26, 1988.

(a)The board shall prescribe all procedures and forms required to carry into effect any property tax exemption enacted by statute or constitutional amendment.

(b)(1) The procedures prescribed pursuant to subdivision (a) shall be deemed satisfied by a qualified lessor by submission to the assessor within 120 days of the commencement date of the lease, or 120 days after the effective date of the act adding this subdivision to this section with respect to any existing lease, whichever is later, information which may be

requested by the board with respect to the lease.

(2)For purposes of this subdivision, “a qualified lessor” is a lessor under a contract designated as a lease between that lessor and an entity using property which qualifies for the property tax exemption provided for by subdivision (d) or (e) of Section 3 of Article XIII of the California Constitution under which the lessee has the option at the end of the lease term of acquiring the property described in the lease for one dollar ($1), or any other nominal sum.

(3)No filing or application for exemption shall thereafter be required by a qualified lessor with respect to that lease unless the option terms of the lease change.

§ 252

Amended by Stats. 1969, Ch. 143.

When making the first claim any person claiming the veterans’ exemption, or the spouse, legal guardian, or conservator of such person, or one who has been granted a power of attorney by such person, shall appear before the assessor, shall give all information required and answer all questions in an affidavit prescribed by the State Board of Equalization, and shall subscribe and swear to the affidavit before the assessor. The assessor may require other proof of the facts stated before allowing the exemption. In subsequent years the person claiming the veterans’ exemption, or the spouse, legal guardian, or conservator of such person, or one who has been granted a power of

attorney by such person, may file the affidavit under penalty of perjury by mail.

Where a claim is filed by a legal guardian or conservator of a person claiming the veterans’ exemption, or one who has been granted a power of attorney by such claimant, the person filing the affidavit shall declare that he has sufficient knowlege of the financial affairs of the claimant to give all information required and answer all questions in the affidavit under penalty of perjury.

§ 252.1

Added by renumbering Section 255.5 by Stats. 1974, Ch. 1107.

Among other facts, the veterans’ exemption affidavit shall contain a statement, showing the claimant’s residence. When the affidavit is filed in a county other than the county of the claimant’s residence, it shall be filed in duplicate and the assessor shall transmit the duplicate copy to the assessor of the county of residence.

§ 253

Amended by Stats. 2019, Ch. 9, Sec. 19. (AB 46) Effective January 1, 2020.

If, because of active military service of the United States in time of war, sickness, or other cause found to be unavoidable in the judgment of the assessor, an applicant for the veterans’ exemption is unable to attend in person before the assessor, and a deputy is not available to go to the place where the applicant is located, then the applicant may make and subscribe the affidavit before any person authorized to administer an oath. If, during time of war, the applicant is in active military service of the United States or of any nation with which the

United States is allied, or is outside of the continental limits of the United States, or if the person entitled to the exemption has a mental health disorder or lacks mental capacity, a member of the applicant’s immediate family or the applicant’s guardian or legal representative, having personal knowledge of the facts required to be set forth, may appear before the assessor and may make and subscribe the affidavit on the applicant’s behalf.

§ 253.5

Amended by Stats. 1974, Ch. 1107.

Any person claiming the homeowners’ property tax exemption shall submit to the assessor an affidavit, giving any information required by the board. Such information shall include, but shall not be limited to, the name of the person claiming the exemption, the address of the property, and a statement to the effect that the claimant owned and occupied the property as his principal place of residence on the lien date, or that he owns and intends to occupy the property as his principal place of residence on the next succeeding lien date.

A claim for the homeowners’ exemption filed by the owner of a dwelling, as defined in Section 218,

once granted for the 1974–75 fiscal year or any fiscal year thereafter, shall remain in effect until such time as title to the property changes, the owner does not occupy the home as his principal place of residence on the lien date, or the property is otherwise ineligible pursuant to the provisions of Section 218.

If the exemption is lost by the owner of the property for any reason, he may file a new claim in the same manner as a new owner may file one.

§ 254

Amended by Stats. 2002, Ch. 775, Sec. 15. Effective January 1, 2003.

Any person claiming the church, cemetery, college, exhibition, welfare, veterans’ organization, free public libraries, free museums, aircraft of historical significance, tribal housing, or public schools property tax exemption and anyone claiming the classification of a vessel as a documented vessel eligible for assessment under Section 227, shall submit to the assessor annually an affidavit, giving any information required by the board.

§ 254.2

Added by Stats. 1947, Ch. 666.

All property owned by the United States or any agency thereof and used exclusively for migratory water fowl refuges, or used for the promotion or protection of migratory water fowl or for migratory water fowl public shooting grounds is exempt from taxation. No affidavit need be filed for this exemption.

§ 254.5

Amended by Stats. 2018, Ch. 37, Sec. 56. (AB 1817) Effective June 27, 2018.

(a)Claims for the welfare exemption and the veterans’ organization exemption shall be filed on or before February 15 of each year with the assessor.

The assessor may not approve a property tax exemption claim until the claimant has been issued a valid organizational clearance certificate pursuant to Section 254.6. Financial statements shall be submitted only if requested in writing by the assessor.

(b)(1) The assessor shall review all claims for the welfare exemption to ascertain whether the property on which the exemption is claimed meets the requirements of Section 214. The assessor shall also review all claims for the veterans’ organization exemption to ascertain whether the property on which the

exemption is claimed meets the requirements of Section 215.1. In this connection, the assessor shall consider, among other matters, whether:

(A) Any capital investment of the owner or operator for expansion of a physical plant is justified by the contemplated return thereon, and required to serve the interests of the community.

(B) The property on which the exemption is claimed is used for the actual operation of an exempt activity and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.

(2)The assessor may institute an audit or verification of the operations of the owner or operator of the applicant’s property to ascertain whether both the owner and operator meet the requirements of Section 214.

(c)(1) The assessor may deny a claim for the welfare exemption on a property, notwithstanding that the claimant has been granted an organizational clearance certificate by the board.

(2)If the assessor finds that the claimant’s property is ineligible for the welfare exemption or the veterans’ organization exemption, the assessor shall notify the claimant in writing of all of the following:

(A)That the property is ineligible for the exemption.

(B)That the claimant may seek a refund of property taxes paid by filing a refund claim with the county.

(C)That if the claimant’s refund claim with the county is denied, the claimant may file a refund action in superior court.

(d)Notwithstanding subdivision (a), an applicant, granted a welfare exemption and owning any property exempted pursuant to Section 214.15 or Section 231, shall not be required to reapply for the welfare exemption in any subsequent year in which there has been no transfer of, or other change in title to, the exempted property and the property is used exclusively by a governmental entity or by a nonprofit corporation described in Section 214.15 for its interest and benefit. The applicant shall notify the assessor on or before February 15 if, on or before the preceding lien date, the applicant became ineligible for the welfare exemption or if, on or before that lien date, the property was no longer owned by the applicant or otherwise failed to meet all requirements for the welfare exemption.

Prior to the lien date, the assessor shall annually mail a notice to every applicant relieved of the requirement of

filing an annual application by this subdivision.

The notice shall be in a form and contain that information that the board may prescribe, after consultation with the California Assessors’ Association, and shall set forth the circumstances under which the property may no longer be eligible for exemption, and advise the applicant of the duty to inform the assessor if the property is no longer eligible for exemption.

The notice shall inform any applicant desiring to maintain eligibility for the welfare exemption under Section 214.15 or Section 231 for the next fiscal year of the procedure to reaffirm exemption eligibility. The failure to reaffirm eligibility for the exemption does not of itself constitute a waiver of exemption as called for by the California Constitution, but may result in additional contact by the assessor to verify exempt activity.

(e)Upon any indication that a welfare exemption or veterans’ organization exemption on the property has been incorrectly granted, the assessor shall redetermine eligibility for the exemption. If the assessor determines that the property, or any portion thereof, is no longer eligible for the exemption, he or she shall immediately cancel the exemption on so much of the property as is no longer eligible for the exemption.

(f)If a welfare exemption or veterans’ organization exemption on the property has been incorrectly allowed, an escape assessment as provided by Article 4 (commencing with Section 531) of Chapter 3 in the amount of the exemption, with interest as provided in Section 506, shall be made, and a penalty shall be assessed for any failure to notify the assessor as required by this section in an amount equaling 10 percent of the escape assessment, but may not exceed two hundred fifty dollars ($250).

(g)Pursuant to Section 15640 of the Government Code, the board shall review the assessor’s administration of the welfare exemption and the veterans’ organization exemption as part of the board’s survey of the county assessment roll to ensure the proper administration of the exemption.

(h)Notwithstanding Section 20, for purposes of this section “board” means the State Board of Equalization.

§ 254.6

Amended by Stats. 2018, Ch. 37, Sec. 57. (AB 1817) Effective June 27, 2018.

(a)An organization that intends to claim the welfare exemption or veterans’ organization exemption shall file with the State Board of Equalization a claim for an organizational clearance certificate.

(b)The board staff shall review each claim for an organizational clearance certificate for the welfare exemption to ascertain whether the organization meets the requirements of Section 214 and shall issue a certificate to a claimant that meets these requirements. The board staff shall also review each claim for an organizational clearance certificate for the veterans’ organization exemption to ascertain whether the organization meets the requirements of Section 215.1 and shall issue a certificate to a claimant that meets these

requirements. In this connection, the board staff shall consider, among other matters, whether:

(1)The services and expenses of the owner or operator (including salaries) are excessive, based upon like services and salaries in comparable public or private institutions.

(2)The operations of the owner or operator, either directly or indirectly, materially enhance the private gain of any individual or individuals.

(c)Any claim of any organization that files for an organizational clearance certificate for the first time shall be accompanied by the claimant’s corporate identification number, mailing address, and all of the following documents:

(1)A certified copy of the financial statements of the organization.

(2)A certified copy of the articles of incorporation and any amendments thereto, or in the case of any noncorporate fund or foundation, its bylaws, articles of association, constitution, or regulations and any amendments thereto.

(3)A copy of a valid, unrevoked letter or ruling from either the Franchise Tax Board or, in the alternative, the Internal Revenue Service, that states that the organization qualifies as an exempt organization under the appropriate provisions of the Bank and Corporation Tax Law or the Internal Revenue Code.

(d)(1) If the board staff determines that a claimant is not eligible for an organizational clearance certificate, the board shall notify the claimant of the ineligibility.

(2)The claimant may file an

appeal of the board staff’s finding of ineligibility with the board within 60 days of the date of mailing of the notice of ineligibility. The appeal of the board staff’s finding shall be in writing and shall state the specific grounds upon which the appeal is founded.

(3)The board shall conduct a hearing on the appeal in accordance with any rules of notice, procedure, and briefing as the board shall prescribe. The parties to the hearing or proceeding shall be the board staff and the claimant appealing the finding of ineligibility. The board staff and the claimant may agree in writing to submit the matter to the board for a decision without a hearing. The board shall provide written findings and conclusions or a written decision to support its decision.

(e)(1) Once granted, an organizational clearance certificate for the welfare exemption remains valid until

the board staff determines that the organization no longer meets the requirements of Section 214. Once granted, an organizational clearance certificate for the veterans’ organization exemption remains valid until the board staff determines that the organization no longer meets the requirements of Section 215.1.

(2)If the board staff determines that the organization no longer meets the requirements for an organizational clearance certificate, the board staff shall revoke the certificate and notify the claimant and each county assessor of the revocation.

(3)The organization may file an appeal of the board staff’s revocation with the board within 60 days of the date of mailing of the notice revocation. The appeal of the revocation shall be in writing and shall state the specific grounds upon which the appeal is founded.

(4)The board shall conduct a hearing on the appeal in accordance with any rules of notice, procedure, and briefing as the board shall prescribe. The parties to the hearing or proceeding shall be the board staff and the claimant appealing the finding of ineligibility. The board staff and the claimant may agree in writing to submit the matter to the board for decision without hearing. The board shall provide written findings and conclusions or a written decision to support its decision.

(f)Pursuant to Section 15618 of the Government Code, the board may institute an audit or verification of an organization to ascertain whether the organization meets the requirements of Section 214.

(g)Notwithstanding Section 20, for purposes of this section “State Board of Equalization” and “board” mean the State Board of Equalization.

§ 255

Amended by Stats. 1997, Ch. 941, Sec. 3. Effective January 1, 1998.

(a)Affidavits required for exemptions named in this article, except the homeowners’ exemption, shall be filed with the assessor between the lien date and 5 p.m. on February 15.

(b)Affidavits for the homeowners’ exemption except as otherwise provided in Sections 255.1, 255.2, and 275, shall be filed with the assessor any time after the claimant becomes eligible but no later than 5 p.m. on February 15.

(c)Notwithstanding the provisions of subdivision (a), any claimant who has been found ineligible for the church exemption or the religious exemption may file an affidavit for a welfare exemption. Affidavits for the welfare exemption filed pursuant to this subdivision shall be filed within 15 days from the date of notification by the assessor of the claimants’ ineligibility for the church exemption or the religious exemption.

§ 255.1

Amended by Stats. 1971, Ch. 147.

The assessor, whenever in his judgment good cause exists, may grant a reasonable extension of time for filing a claim for the homeowners’ property tax exemption to any claimant who has filed a timely claim, but the claim is otherwise defective because it lacks either any of the required information or the signature of the claimant.

Only one extension shall be allowed to such claimant for any one filing period. No extension shall be more than six months from the due date provided for filing the claim, unless the assessor does not find and notify the claimant of the defect within a reasonable time to allow resubmission of the defective

claim as corrected before the expiration of the six-month extension, in which case the assessor shall extend the permissible period for filing no more than three months from the time the defect or defects are found and the claimant is notified.

§ 255.2

Amended by Stats. 1991, Ch. 646, Sec. 4.

Notwithstanding Section 255 of the Revenue and Taxation Code, any veteran who is filing for the veteran’s exemption on his or her principal place of residence for the first time or who was found eligible for that exemption on his or her principal place of residence in the immediately preceding year and whose claim is timely filed but disallowed for the current year may, if otherwise qualified for the homeowner’s exemption, file for the homeowner’s exemption as provided herein.

The assessor shall notify those applicants he or she finds ineligible for the veteran’s exemption of his or her finding and shall inform

them that they have 15 days from the date of the notice to file for the homeowner’s exemption. The failure of the assessor to provide the notice required by this section shall extend the filing period for those not notified to the next lien date.

§ 255.3

Amended by Stats. 1997, Ch. 941, Sec. 4. Effective January 1, 1998.

For the 1998–99 fiscal year and each fiscal year thereafter, the assessor shall on or before January 15 mail a claim form for the homeowners’ exemption to a person acquiring title to, and recording his or her ownership of an eligible dwelling after the immediately preceding lien date and before the lien date of the calendar year of the claim. The failure of a person to receive a claim form shall not, however, excuse the person from timely filing of the required affidavit.

§ 255.6

Amended (as added by Stats. 1974, Ch. 60, Sec. 8) by Stats. 1974, Ch. 1107, Sec. 7. Amendment operative beginning with 1974-75 fiscal year, by Sec. 21 of Ch. 1107.

The assessor shall verify the eligibility of each claimant who is receiving a homeowners’ exemption to continue to receive such an exemption in accordance with rules issued by the board to provide for a periodic audit and for the establishment of a control system for the homeowners’ exemption claims.

§ 255.7

Added by Stats. 1974, Ch. 60.

Whenever a change of ownership is recorded in the county recorder’s office, the county recorder shall provide the assessor with a copy of the transfer of ownership document as soon as possible.

§ 255.8

Amended by Stats. 1983, Ch. 1281, Sec. 12. Effective September 30, 1983.

In counties having 10 percent or more persons who are of Spanish origin according to the most recent federal decennial census, claim forms and accompanying instructions required to be sent to homeowners by Section 255.3 shall be in English and Spanish. Claim forms and instructions in Spanish may also be sent or made available in any other county, at the discretion of the county assessor.

§ 256

Amended by Stats. 1976, Ch. 681.

(a)The affidavit for church exemption shall show that:

(1)The building and equipment are used solely for religious worship.

(2)The land claimed as exempt is required for the convenient use of the building.

(b)Each year before the lien date, county assessors shall mail a claim form for the church exemption to all recipients of such exemption in the prior year, except where the prior recipient has transferred title to the property since the prior lien

date.

§ 256.5

Added by Stats. 1966, 1st Ex. Sess., Ch. 147.

The affidavit for the cemetery exemption shall show that:

(a)The property is used or held exclusively for the burial or other permanent deposit of the human dead or for the care, maintenance or upkeep of such property or such dead, and

(b)The property is not used or held for profit.

§ 256.6

Added by Stats. 2003, Ch. 604, Sec. 4. Effective January 1, 2004.

(a)(1) Prior to the lien date, the assessor shall annually mail a notice to every person or entity that received, in the immediately preceding fiscal year, the exemption provided by Section 204.

(2)The board shall prescribe the form for the annual notice described in paragraph (1), which form shall specify the following:

(A)The circumstances under which the property may be disqualified from

exemption.

(B)That the person or entity has a duty to inform the assessor if the property no longer qualifies for the exemption.

(b)At the same time the notice described in subdivision (a) is mailed, the assessor shall include with that notice a card that may be returned to the assessor by the person or entity receiving the notice, which card shall be in the following form:

To all persons and entities that have received a nonprofit cemetery exemption for the ____ fiscal year.

QUESTION: Will the property to which the exemption applied in the ____ fiscal year continue to be used or held exclusively for the burial or other permanent deposit of the human dead or for the care, maintenance, or upkeep of that property or those dead in the ____ fiscal

year?

___ yes___ no

Signature: ____________ Title: __________

Failure to return this card does not constitute a waiver of this exemption as specified by the California Constitution, but may result in an onsite inspection by the assessor to verify any exempt activity.

§ 256.7

Added by Stats. 2003, Ch. 604, Sec. 5. Effective January 1, 2004.

(a)Notwithstanding Sections 254, 256.5, and 256.6, an affidavit claiming the cemetery exemption, as provided for in subdivision (g) of Section 3 of Article XIII of the California Constitution and Section 204, is not required to be filed in order to receive the exemption for any cemetery that exists, or is discovered to exist, in the unincorporated area of a county for which the assessor is unable to identify the legal cemetery authority, as defined in Section 7018 of the Health and Safety Code, that may by law claim the exemption for that

cemetery, if both of the following apply:

(1)The cemetery was used by residents of the state prior to the year 1900.

(2)The cemetery is no longer used for current or future interments.

(b)Any tax, penalty, or interest imposed upon a cemetery subject to this section shall be canceled pursuant to Article 1 (commencing with Section 4985) of Chapter 4 of Part 9, as if it had been levied or charged erroneously.

§ 257