Welfare Property Tax Exemption
The Welfare Exemption is available only to property, real or personal, owned by a religious, charitable, hospital, or scientific organization and used exclusively for religious, charitable, hospital, or scientific purposes.
An organization that is seeking the Welfare Exemption shall file with the State Board of Equalization (Board) a claim for an Organizational Clearance Certificate. The Board shall review each claim to determine whether the organization meets the requirements of section 214 and shall issue a certificate to a claimant that meets these requirements. The Assessor may not approve a property tax exemption claim until the claimant has been issued a valid Organizational Clearance Certificate. If the claim is filed timely with the Assessor, the claim will be considered timely filed even if the claimant has not yet received the Organizational Clearance Certificate from the Board.
To receive the full exemption, the claimant must file a claim each year on or before February 15th. Only 90 percent of any tax or penalty or interest thereon may be canceled or refunded when a claim is filed between February 16th of the current year and January 1st of the following calendar year; if the application is filed thereafter, only 85 percent of any tax or penalty or interest thereon may be canceled or refunded. In no case, however, is the tax, penalty, and interest for a given year to exceed $250. A separate claim must be completed and filed for each property for which exemption is sought.
The owner and the operator must furnish additional information to the Assessor if requested. The Assessor may institute an audit or verification of the operations of the owner and of the operator and may request additional information from the claimant.
Form BOE-277, Claim for Organizational Clearance Certificate - Welfare Exemption, is available on the Board’s website.
The Board will determine whether an organization is eligible for the exemption and the Assessor will determine whether the use of the property is eligible for the exemption. Contact the Assessor if you are unsure which forms your organization should file.