- Home
- Government
- Departments A - D
- Assessor
- Resources & Information
- Learning
- Exemptions
- Nonprofit Exemptions
Nonprofit Exemptions
Under section 4(b) of article XIII of the California Constitution, and section 214of the California Revenue and Taxation (R&T) Code the Legislature has the authority to exempt property (1) used exclusively for religious, hospital, scientific or charitable purposes and (2) owned or held in trust by charitable nonprofit organizations operating for those purposes.
Under new claim administration guidelines, amended January 1, 2004, by Senate Bill 1059, an organization filing for the first time must submit to the State Board of Equalization (BOE) a claim form that includes the following:
- An IRS 501 (c)(3) or Franchise Tax Board 23701(d) letter of determination.
- Articles of Incorporation and all amendments certified by the California Secretary of State.
- Copies of financial statements for the years claimed.
If the BOE determines that an organization qualifies, the BOE will issue an Organizational Clearance Certificate to the organization. A copy of the Organizational Clearance Certificate can then be filed with claim forms in any of the 58 counties in the state of California.
The Assessor determines whether the use of the property is eligible for the exemption. Any use for a thrift or retail store, exclusively for fund raising, shared or exclusive use other than incidental by an individual or for-profit entity would not be exempt.
Please file any affidavits that are applicable. It is possible that multiple affidavits may be required.
** These exemptions require an annual filing, which is timely if received or postmarked by 5:00 p.m., February 15th, or the next business day if the 15th falls on a County Holiday or weekend.
Note: Additional State Board of Equalization Forms for all Counties are available on the Cal Assessor e-Forms website.
Welfare
Claim for Welfare Exemption (First Filing - BOE-267): The Welfare Exemption is available to non-profit property owners who own and operate real and personal property for Religious, Scientific, Hospital or Charitable purposes. This claim form is for the initial request of welfare exemption for a specific property when the claimant is a new filing in the county or requesting exemption for a new location in the county. Financial documentation and a valid Organizational Clearance Certificate is required for filing Find further information on the Board of Equalization website.
** Claim for Welfare Exemption (Annual Filing - BOE-267-A) (PDF): This claim form is filed on an annual basis after an initial "been met" finding, pending an Organizational Clearance Certificate ruling, or properties that were granted exemption in the prior year. Find further information on the Board of Equalization website.
** Welfare Exemption Supplemental Affidavit, Organizations and Persons Using Claimants Real Property (Annual Filing - BOE-267-O) (PDF): This affidavit is filed if indicated on the Claim for Welfare Exemption First Filing (BOE-267) (PDF) or Claim for Welfare Exemption Annual Filing (BOE-267-A) (PDF) This affidavit is required if other persons or organizations use any of the Real or Personal Property
Welfare- Elderly or Handicapped
** Welfare Exemption Supplemental Affidavit, Elderly or Handicapped (BOE-267-H) This affidavit is filed if indicated on the Claim for Welfare Exemption First Filing (BOE-267) (PDF) or Claim for Welfare Exemption Annual Filing (BOE-267-A) (PDF). The property used for elderly or handicapped housing must qualify for one or more of the following:
- The property must be financed pursuant to (federal) Public Law sections 202, 231, 236 or 811,
- The facility must provide supplemental care and services such as meals, activities, medical care, transportation to doctors, shopping, etc. or the units must be occupied by persons whose total household income does not exceed limits specific to that County adjusted annually.
** Welfare Exemption Supplemental Affidavit, Elderly or Handicapped Household Reporting Worksheet (BOE-267-H-A) This worksheet is supplied for tenants to report their income to the claimant. This document is to be held on file with the claimant and not returned to the Assessor’s Office.
Welfare- Lower Income Household Use
** Welfare Exemption Supplemental Affidavit, Lower Income Households (BOE-267-L) This affidavit is filed if indicated on the Claim for Welfare Exemption First Filing (BOE-267) (PDF) or Claim for Welfare Exemption Annual Filing (BOE-267-A) (PDF) The property must be used exclusively for rental housing and related facilities owned and operated by religious, hospital, scientific or charitable funds, foundations or corporations, or a veterans’ organization. The tenants household income cannot exceed annually adjusted limits, vacant units must held and dedicated to low income housing and the owner must certify that the property tax savings are used to maintain the affordability of or reduce rents otherwise necessary for the units occupied for lower income households. They must also have rents governed by deed restrictions or regulatory agreements or is eligible for and receives low-income housing tax credits pursuant to IRS Code Section 42 or 1986, as added by Public Law 99-514.
** Welfare Exemption Supplemental Affidavit, Low Income Housing Property of Limited Partnership (BOE-267-L1) This affidavit is filed if indicated on the Claim for Welfare Exemption First Filing (BOE-267) (PDF) or Claim for Welfare Exemption Annual Filing (BOE-267-A) (PDF) The property must be used exclusively for rental housing and related facilities owned and operated a Limited Partnership in which the managing general partner is an eligible nonprofit corporation. The tenants household income cannot exceed annually adjusted limits, vacant units must held and dedicated to low income housing and the owner must certify that the property tax savings are used to maintain the affordability of or reduce rents otherwise necessary for the units occupied for lower income households. They must also have rents governed by deed restrictions or regulatory agreements or is eligible for and receives low-income housing tax credits pursuant to IRS Code Section 42 or 1986, as added by Public Law 99-514. The managing general partner holds the Organizational Clearance Certificate whereas the Limited Partnership holds the Supplemental Clearance Certificate. Find further information on the Board of Equalization website.
** Welfare Exemption Supplemental Affidavit, Lower Income Households – Tenant Data Partnership (BOE-267-L2) This affidavit is filed if box C(3) in Section 3 of form BOE-267-L is marked yes indicating that you are seeking an exemption under the provisions of 214(g)(1)(c)
** Welfare Exemption Supplemental Affidavit, Households Exceeding Low Income Limits “Over Income” Tenant Data (140% AMI) (BOE-267-L3) This affidavit is filed to identify tenants who exceed the income limit but fall below the 140% AMI threshold as identified on the BOE-267-L or BOE-267-L1
** Welfare Exemption Supplemental Affidavit, Lower Income Households Family Household Income Reporting Worksheet (BOE-267-L-A) This worksheet is supplied to the tenants to report their income to the claimant. This document is to be held on file with the claimant and not returned to the Assessor’s Office.
Welfare- Rehabilitation Use
** Welfare Exemption Supplemental Affidavit, Rehabilitation – Living Quarters (BOE-267-R) This affidavit is filed if indicated on the Claim for Welfare Exemption First Filing (BOE-267) (PDF) or Claim for Welfare Exemption Annual Filing (BOE-267-A) (PDF)