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1. Is a Charter School a Government Entity and excluded from taxation?

Charter Schools are an extension of the California Public School system. The Charter School must have approval from the California State Department of Education, Placer County Office of Education and an active charter with a Unified School District. Charter Schools are exempted from taxation if a claim form is filed annually, they are not automatically excluded from taxation.

2. Is any school instructing students in grades K – 12 eligible?

A Private, Nonprofit School, regardless of receiving public grants is not considered a Public School.  A Public School is any school publicly funded, governed by the State Department of Education and Placer County Office of Education. The instruction extends past Pre-K – 12 to include: Community Colleges, State Colleges and State Universities.

3. Isn’t a Community College or University considered a College and therefore should file for a College Exemption?

Community Colleges and Universities are governed by the State Department and Placer County Office of Education and are considered Public Schools. The College Exemption is afforded to Non-Profit Colleges or Seminary Schools and confers upon its graduates at least one academic or professional degree based on specific courses. For-Profit Colleges are not eligible to file for any exemption in California.

4. What types of property are exempt?

Real and personal property owned by a Public School or College, used exclusively by the entity may qualify for an exemption. Any use by another operator may be subject to taxation. The exemption is considered based on both the owner of the property and the use thereof.

5. How does a Public School receive an exemption on property they don’t own?

A For-Profit owner can file for a Lessors’ Exemption if the property is leased to  a Public School and the lease or rental agreement specifically provides that the exemption will fix the terms and Lessor will pass any tax savings to the Lessee in the form or reduced rents, refund of market rents paid or a reduction of Common Area Maintenance (CAM) fees in a triple net (NNN) lease, equal to the reduction in taxes. If the Lessor does not claim the exemption on the property, the Lessee may file a claim for refund with the Auditor Controller’s Office as the Lessee shall be deemed to be the person who paid the tax through rents or CAM fees. The Lessee shall be refunded for the portion of the property eligible for the exemption even though the actual bill was paid by the property owner.

6. Do we have to file every year?

Yes. A claim form is required to be received by our office or postmarked before 5:00 p.m. February 15th every year. The only exception is if the 15th falls on the weekend, then the next business day at 5:00 p.m. is the due date.

Information regarding Educational Exemptions can be found in Revenue and Taxation Code: 202, 202.2, 202.5, 202.6, 202.7, 203, 203.1, 203.5.