The institutional exemption applies to properties used exclusively for religious, hospital, scientific or charitable purposes. The property must be owned or held in trust by a non-profit organization that holds an Organization Clearance Certificate issued by the State Board of Equalization.
Qualifying purposes and property use include:
A qualifying organization’s property may be exempted fully or partially from property tax, depending on how much of the property is used for a qualifying purpose and activity. It is the Assessor’s duty to determine whether the use of the property qualifies for the welfare exemption. When making this determination, the assessor considers whether the actual operation of the property (use of the property) is consistent with the purpose identified on the Organizational Clearance Certificate.
You may contact the State Board of Equalization's website or telephone (916) 274-3350 to apply for an Organization Clearance Certificate.
The law recognizes mid-year acquisitions of real property by qualified organizations. If the property is put to an exempt use within 90 days of acquisition, it may be possible to have the Welfare Exemption applied to the current year's taxes.
For property acquired between January 1 and June 30, full cancellation of taxes is possible for the ensuing fiscal year (beginning July 1). For property acquired between July 1 and December 31, prorated cancellation is available from the date of acquisition to the end of the fiscal year (June 30).