Property Tax Welfare Exemption

California Property Tax Welfare Exemption

Does your nonprofit organization qualify for property tax exemption? Let us help you determine if you do!

The California Legislature has the authority to exempt from taxation property (1) used exclusively for religious, hospital, or charitable purposes, and (2) owned or held in trust by nonprofit organizations operating for those purposes.  This exemption is known as the Welfare Exemption ….  When the Legislature enacted section 214 of the Revenue and Taxation Code to implement the Constitutional provision, a fourth purpose – scientific – was added to the three mentioned in the Constitution.

Note, that just because an organization has 501(c)(3) status – that does not automatically make the organization exempt from property taxes. Also, not every 501(c)(3) organization will qualify for the Welfare Exemption.

New organizations must have certain language in their governing documents in order to qualify for the Welfare Exemption.

We will assist organizations seeking exemption for the first time to file a claim for an Organizational Clearance Certificate and, where applicable, a Supplemental Clearance Certificate for Limited Partnership, Low-Income Housing Property – Welfare Exemption, with the Board of Equalization.

We will also assist your organization to file annual claims for the Welfare Exemption with the county assessor in which the organization’s property is located or being used.

Interested in learning more? Contact us for a free consultation.