Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

CHAPTER 1. Taxation Base

Article 1. Taxable and Exempt Property

Section 214.6

214.6. Welfare exemption; property leased to governmental entity. (a) (1) Property that is owned by an organization meeting the requirements of subdivision (b) of Section 4 of Article XIII of the California Constitution and complying with the requirements of paragraphs (1) to (7), inclusive, of Subdivision (a) of Section 214 and that is leased to an exempt governmental entity for the purpose of conducting an activity that if conducted by the owner would qualify the property for an exemption, or leased to a public school, community college, state college, or state university, including the University of California, for educational purposes, shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 of Article XIII of the California Constitution if:

(A) The total income received by the exempt organization in the form of rents, fees, or charges from such lease does not exceed the ordinary and usual expenses in maintaining and operating the leased property; and

(B) With respect to entities that are political subdivisions of the state, the property is located within the boundaries of the exempt governmental entity leasing the same.

(2) To claim the exemption provided by this section for property leased by a qualifying organization to a public school, community college, state college, or state university, including the University of California, when both entities use the property in a joint manner, the organization need only attach a copy of the lease agreements with the annual filing of the welfare exemption claim.

(b) To claim the welfare exemption provided by this section for property leased by a church to a public school, community college, state college, or state university, including the University of California, when both entities use the property in a joint manner, and where the church has claimed a religious exemption, the church need only annually file a church lessor's exemption claim and affirm each of the following:

(1) The total income received by the church in the form of rents, fees, or charges from the lease does not exceed the ordinary and usual expenses in maintaining and operating the leased property.

(2) With respect to entities that are political subdivisions of the state, the property is located within the boundaries of the exempt governmental entity leasing the same.

History.—Added by Stats. 1977, Ch. 414, in effect January 1, 1978. Stats. 1979, Ch. 393, in effect July 27,1979, added ", or leased to a community college, state college, or state university for educational purposes," after "exemption", and added "with respect to entities which are political subdivisions of the state," before "the" in subsection (2). Stats. 1982, Ch. 558, in effect January 1, 1983, added "(a)" before "Property" at the beginning of the first sentence and added subdivision (b). Stats. 1987, Ch. 498, in effect January 1, 1988, substituted "California" for "State" before "Constitution", substituted "paragraphs" for "subdivisions" after "requirements of", and added "of subdivision (a)" after "inclusive," in the first sentence of subdivision (a). Stats. 2009, Ch. 67 (SB 824), in effect January 1, 2010, designated the former first paragraph of subdivision (a) as paragraph (1) thereof, added "public school," after "leased to a" and added ", including the University of California," after "state university" in the first sentence therein, designated former paragraph (1) as subparagraph (A) and added "exempt" after "by the" and added a comma after "fees" in the first sentence therein, and designated former paragraph (2) as subparagraph (B), and added paragraph (2) thereto; added "welfare" after "claim the", substituted "public school, community college, state college, or state university, including the University of California, when both entities use the property in a joint manner, and where the church has claimed a religious exemption, the church need only annually file a church" for "school district, the church need only file a" after "church to a" in the first sentence of the first paragraph of subdivision (b), and substituted "church" for "organization" after "by the" in the first sentence of paragraph (1) therein; and substituted "that" for "which" throughout the text.

Note.—Section 2 of Stats. 1979, Ch. 393, provided that no appropriation is made by this act because the duties, obligations, or responsibilities imposed on local agencies or school districts by this act are such that related costs are incurred as part of their normal operating procedures. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Chapter 3 (commencing with Section 2201) of Part 4 of Division 1 of that code. Section 3 thereof provided that the act shall be operative for the 1979–80 assessment year.