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

Article 2 Procedure to Claim Exemptions

Article 2.5 Late Exemption Claims

Article 3 Audit of Veterans' Exemption Claims

PART 2. ASSESSMENT

Chapter 1. Taxation Base

Article 1. Taxable and Exempt Property

201. Taxable property. All property in this State, not exempt under the laws of the United States or of this State, is subject to taxation under this code.

Construction.—This section constitutes statutory authority for taxation on an "average presence" basis. Express statutory authorization for the lien-date structure of property taxation does not preclude other fair and reasonable methods of assessment. Sea-Land Service, Inc. v. Alameda County, 12 Cal.3d 772.

Religious literature.—The imposition of a nondiscriminatory personal property tax on religious books and pamphlets held in a warehouse by a corporation engaged exclusively in spreading the doctrines of a religious organization is not unconstitutional as an infringement on freedom of religion or freedom of the press guaranteed by the First and Fourteenth Amendments to the United States Constitution. Watchtower Bible & Tract Society, Inc. v. Los Angeles County, 181 F.2d 739, cert. denied 340 U.S. 820.

Possessory interests in personal property.—This section and Article XIII, Section 1, are controlled by constitutional and statutory provisions dealing expressly with personal property and interests therein. General Dynamics Corp. v. Los Angeles County, 51 Cal.2d 59.

Estoppel.—On appeal of a judgment in favor of a cable television company in a proceeding for a writ or mandate by a county to order the county assessment appeals board to set aside its decision that the company's cable television franchises could not be taxed, the county assessor's earlier assertions that the company's possessory interests should not be separately assessed and that its franchises had no value apart from its tangible property did not preclude review of this issue. The government cannot be estopped from collecting taxes because of an administrative official's erroneous ruling, and an assessor's duty to assure uniformity in taxation bestows upon him the power to collect taxes due retroactively. Stanislaus County v. Assessment Appeals Board, 213 Cal.App.3d 1445.

201.1. Transit development board; property of wholly owned, nonprofit entity. Property owned by a nonprofit entity, in which a transit development board has the sole ownership interest in the entity, shall be deemed to be property owned by the transit development board for purposes of this division. To the extent that the property is possessed, or a claim to or right to possession of the property exists, for other than public purposes, the interest shall be deemed a possessory interest as defined in Section 107.

It is the intent and purpose of this section to clarify Section 3 of Article XIII of the California Constitution and, therefore, this section does not constitute a change in, but is declaratory of, the existing law. Furthermore, this section shall not be construed to exempt, from ad valorem property taxation, property of any transit development board located outside of its boundaries.

History.—Added by Stats. 1981, Ch. 4, in effect February 27, 1981. Stats. 1981, Ch. 414, in effect January 1, 1982, deleted the third and fourth paragraphs which provided the exemption "shall be in effect only during the 1981–82 assessment year."

Note.—Section 2 of Stats. 1981, Ch. 414, provided no payment by state to local governments because of this act.

Back to top


201.2. Agricultural fair; use of county-owned property. (a) A nonprofit corporation which has contracted with the board of supervisors pursuant to Section 25905, 25906, 25907, or 25908 of the Government Code for the conduct of an agricultural fair, shall be deemed to be an agency of the county for purposes of this part and for no other purpose, and county-owned property, including possessory interests in that property, used or possessed by the nonprofit corporation in the conduct of an agricultural fair shall be exempt from taxation under subdivision (b) of Section 3 of Article XIII of the State Constitution.

(b) This section shall not be construed to exempt any profit-making organization or concessionaire from any property tax, including a property tax on a possessory interest, for the use of property which is used by a nonprofit corporation for the conduct of a fair.

History.—Added by Stats. 1982, Ch. 558, in effect January 1, 1983. Stats. 1991, Ch. 646, in effect January 1, 1992, deleted former subdivision (b) which provided "Any tax which is levied as a result of an assessment made of property described in subdivision (a) after January 1, 1982, shall, if unpaid, be cancelled and, if paid, be refunded."; relettered former subdivision (c) as subdivision (b).

Note.—Section 3 of Stats. 1982, Ch. 558, provided the Legislature finds and declares that the type of property described in Section 201.2 of the Revenue and Taxation Code, as added by this act, is property of a type which was not being assessed and taxed on January 1, 1973. Therefore, there shall be no reimbursement of local government of any property tax loss, and the State Board of Control shall accept no claims for reimbursement in that regard.

201.3. City of San Diego; property of wholly owned, nonprofit entity. Property which is exclusively devoted to public purposes and is owned by a nonprofit entity, in which a chartered city with a population of over 750,000 and located in a county of the third class has the sole ownership interest shall be deemed to be property owned by the chartered city.

This section shall not be construed to exempt from ad valorem property taxation property of the chartered city located outside of its boundaries.

History.—Added by Stats. 1987, Ch. 1412, in effect January 1, 1988.

Note.—Section 2 of Stats. 1987, Ch. 1412, provided that the Legislature finds and declares that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because the City of San Diego has created a nonprofit public benefit corporation the sole ownership interest in which is held by the city. The property of that nonprofit corporation is used exclusively to provide services, goods, or equipment to the city and other public entities within the County of San Diego for their interest and benefit. The unique structure and operational activities of the nonprofit corporation do not permit a total exemption from taxation of its property under the current exemptions available to nonprofit corporations which are owned by or operated for the interest and benefit of public entities, notwithstanding the fact that the nonprofit corporation is devoted to public purposes and is owned exclusively by a public entity. This act makes a classification or exemption of property for purposes of ad valorem taxation within the meaning of Section 2229 of the Revenue and Taxation Code. Sec. 3 thereof provided that this act shall apply to exemption claims filed for the 1988–89 fiscal year and fiscal years thereafter.

201.4. City of Palm Springs; possessory interests. (a) The possessory interests of a nonprofit entity, solely owned by the City of Palm Springs, in property which is located wholly within the boundaries of an Indian reservation and owned by the United States in trust for named Indian allottees, and which is leased to the City of Palm Springs under a master lease a portion of which for purposes of financing is subleased to a nonprofit entity, and subleased by that nonprofit entity to the City of Palm Springs which devotes that property exclusively to convention or related public purposes, shall be deemed to be property owned by the City of Palm Springs.

(b) Property which is owned in fee by a nonprofit entity in which the City of Palm Springs has the sole ownership interest, and leased by that nonprofit entity to the City of Palm Springs which devotes that property exclusively to convention or related public purposes, shall be deemed to be property owned by the City of Palm Springs.

(c) This section shall not be construed to exempt from ad valorem property taxation any possessory interest in otherwise tax-exempt property not devoted exclusively to convention or related public purposes or any property or possessory interest in property of the City of Palm Springs located outside of its boundaries.

History.—Added by Stats. 1989, Ch. 539, in effect September 20, 1989.

Note.—Sections 2 and 4 of Stats. 1989, Ch. 539, state the Legislature's findings, declarations and intent in enacting that act as follows: " . . . a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution due to the following unique circumstances:

The City of Palm Springs owns and operates public facilities located upon one of three assessor's parcels which are or will be leased from the United States of America as trustee for certain Indian allottees. That master lease serves the function of pooling rental income from all three parcels for distribution to the numerous Indian allottees. The one leased parcel used by the City of Palm Springs exclusively for public purposes is subleased to a nonprofit public benefit corporation, the sole ownership interest of which is held by the city. That nonprofit entity in turn has financed and constructed the public facility and sublet the property to the City of Palm Springs. The subleases require that any ad valorem taxes assessed against the property or possessory interest therein be paid by the sublessee. An adjoining parcel owned in fee by the same nonprofit entity is likewise leased to the City of Palm Springs and used by the city for public purposes. The unique nature of ownership and financing and leasing arrangements do not permit a total exemption from taxation under current law of these parcels even though used exclusively for public purposes.

It is the intent of the Legislature in enacting this act that the provisions of Article 5 (commencing with Section 5081) of Chapter 4 of Part 9 of Division 1 of the Revenue and Taxation Code shall apply to the subject property, including any taxable possessory interest in the subject property acquired by the City of Palm Springs or deemed to be owned by the city, and that the date of apportionment of taxes pursuant to Section 5082 of the Revenue and Taxation Code shall be the date upon which the City of Palm Springs acquires the master lease referred to the Sections 1 and 2."

Back to top


201.5. California Pollution Control Financing Authority; possessory interests. (a) Possessory interests in property acquired by or for the California Pollution Control Financing Authority pursuant to Division 27 (commencing with Section 44500) of the Health and Safety Code, whether in real or personal property, shall be subject to taxation under this code.

(b) If the amount determined pursuant to subdivision (a) is less than the amount of tax which would have been imposed if the participating party owned the pollution control facility, the contract or lease between the California Pollution Control Financing Authority and such party shall provide that the difference between the amount of tax paid pursuant to subdivision (a) and the amount determined on the basis of the full cash value of the property shall be paid by such party to the tax collector for the taxing agency at the same time as the property tax is paid.

History.—Added by Stats. 1973, Ch. 277, p. 673, in effect August 15, 1973. Stats. 1975, Ch. 957, p. 2228, in effect January 1, 1976, substituted "Section 44500" for "Section 39600" in subdivision (a).

201.6. Ventura Port District; possessory interests. (a) Subject to subdivision (b), property that is exclusively devoted to a public purpose and is owned by a nonprofit entity, the property, assets, profits, and net revenues of which are irrevocably dedicated to the Ventura Port District, shall be deemed to be property that is owned by the Ventura Port District.

(b) This section shall not be construed to exempt from ad valorem property taxation, including, but not limited to, any ad valorem property tax levied with respects to a possessory interest, either of the following:

(1) Any property owned by a profit-making organization or concessionaire.

(2) Any property of the Ventura Port District that is located outside of the boundaries of the district.

History.—Added by Stats. 1996, Ch. 1087, in effect January 1, 1997.

201.7. State parks; possessory interests. A qualified nonprofit corporation that has entered into an agreement with the Department of Parks and Recreation pursuant to subdivision (a) of Section 5080.42 of the Public Resources Code for the development, improvement, restoration, care, maintenance, administration, or operation of a unit or units, or portion of a unit, of the state park system shall be deemed to be an agent of the state for purposes of this division and for no other purpose, and any state-owned property, including possessory interests in that property, used or possessed by the qualified nonprofit organization for the development, improvement, restoration, care, maintenance, administration, or operation of a unit or units, or portion of a unit, of the state park system shall be exempt from taxation under subdivision (a) of Section 3 of Article XIII of the California Constitution.

History.—Added by Stats. 2012, Ch. 533 (AB 1589), in effect January 1, 2013.

202. Crops, libraries, museums, schools, government property. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d) and (h) of Section 3 of Article XIII of the Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof:

(1) Growing crops.

(2) Property used for free public libraries and free museums.

(3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.

(4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.

(b) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.

(c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:

(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and

(2) Is primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income.

This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstore's gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied.

At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organization's most recent tax return filed with the Internal Revenue Service.

History.—Stats. 1945, p. 31, (Third Extra Session 1944), deleted "United States" from subsection (d) and added subsection (e). Pursuant to Section 4 of the amending statute this amendment took effect on the adoption of the 1944 amendment to Article XIII, Section 1, of the Constitution. Stats. 1951, p. 2447, in effect September 22, 1951, added second sentence to subsection (d). Stats. 1974, Ch. 311, p. 590, in effect January 1, 1975, substituted "subsections (a), (b), (d) and (h) of Section 3" for "Section 1", and added the balance of the first sentence after "Constitution"; and deleted former subsection (e) relating to property exempt under the laws of the United States. Stats. 1976, Ch. 776, p. 1817, in effect January 1, 1977, added the subdivision letters; relettered the former subsections (a), (b), (c), and (d) as subsections (1), (2), (3), and (4), respectively; and added subdivision (b). Stats. 1978, Ch. 936, in effect September 20, 1978, added the phrase "community colleges, state colleges, and state universities, including the University of California" in subdivision (a)(3). Sec. 4 of the bill provided that no reimbursement was to be allowed local government because of this amendment. Stats. 1988, Ch. 1606, in effect January 1, 1989, added subdivision (c).

Note.—Stats. 1951, p. 2447, amending Sections 202, 12003 and 12264 of the Revenue and Taxation Code, provides that if any one of its provisions is held invalid the remainder of the act shall also be deemed invalid.

Note.—Section 3 of Stats. 1976, Ch. 776, p. 1817, provided that 1976 amendments are declaratory of existing law.

Note.—Section 4 of Stats. 1988, Ch. 1606, provided that if any provision of this act or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Sec. 5 thereof provided that no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the Legislature finds and declares that there are savings as well as costs in this act which, in the aggregate, do not result in additional net costs. Sec. 6 thereof provided that notwithstanding Section 2229, the requirements of that section shall not apply to the exemption of property for purposes of ad valorem property taxation made by this act. In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. Sec. 7 thereof provided that this act shall apply to property taxes levied for the 1989–90 fiscal year and fiscal years thereafter.

Note.—For cases relating to the exemptions in this section see annotations after Article XIII, Section 3, of the Constitution.

Back to top


202.1. Turf grass. [Repealed by Stats. 1974, Ch. 157, p. 303, in effect April 4, 1974, operative June 30, 1979.]

202.2. Reductions of taxes for property leased to various entities. Any reduction in property taxes on leased property used for libraries and museums that are free and open to the public, leased property used exclusively for public schools, community colleges, state colleges, or state universities, including the University of California, or leased property used exclusively for educational purposes by a nonprofit institution of higher education and granted the exemption set forth in subdivision (d) or (e) of Section 3 of Article XIII of the California Constitution shall inure to the benefit of the lessee institution. If the lessor claims the exemption and if the lease or rental agreement does not specifically provide that the exemption contained in subdivision (d) or (e) of Section 3 of Article XIII is taken into account in fixing the terms of the agreement, the lessee shall receive a reduction in rental payments or a refund thereof, if already paid, in an amount equal to the reduction in taxes.

If the lessor does not claim the exemption on property eligible for the exemption contained in subdivision (d) or (e) of Section 3 of Article XIII, the lessee may file a claim for refund under Section 5096 with respect to taxes paid by the lessor on the property. For purposes of Sections 5097 and 5140, the lessee shall be deemed to be the person who paid the tax, and the refund shall be made directly to the lessee. Notwithstanding the provisions of paragraph (1) of subdivision (a) of Section 270, the full amount of tax paid by the lessor shall be refunded to the lessee.

Any refund granted pursuant to this part shall not be considered a reduction in the sales price or gross receipts from the rental of the property for purposes of Part 1 (commencing with Section 6001), Part 1.5 (commencing with Section 7200) or Part 1.6 (commencing with Section 7251).

History.—Added by Stats. 1978, Ch. 936, in effect September 20, 1978. Sec. 4 of bill provided no reimbursement was to be allowed local government because of this enactment.

202.5. State colleges; use of certain property. Personal property used exclusively in the performance of activities authorized by Division 8 (commencing with Section 89000) of the Education Code, whether by the college itself or by an auxiliary nonprofit corporation or student body organization with which the Director of Education has entered into a lease or contract for the performance of such activities, is deemed property used exclusively for public schools and shall be exempt from taxation.

It is hereby declared that this section is not a change in the present law but is a declaration of preexisting law.

History.—Added by Stats. 1957, p. 2395, in effect September 11, 1957. Stats. 1970, p. 1072, in effect November 23, 1970, substituted "Division 18 (commencing with Section 23600)" for "Article 2 (commencing at Section 20341) Chapter 2, Division 10" in the first paragraph. Stats. 1981, Ch. 261, in effect January 1, 1982, substituted "Division 8" for "Division 18" and "Section 89000" for "Section 23600" in the first paragraph.

202.6. Personalty used by a student organization. Personal property used exclusively in the performance of activities authorized by Article 2 (commencing with Section 48930) of Chapter 6 of Part 27 of Division 4 of, or Article 4 (commencing with Section 76060) of Chapter 1 of Part 47 of Division 7 of the Education Code by a student body organization acting pursuant to those provisions, is deemed property used exclusively for public schools and shall be exempt from taxation.

History.—Added by Stats. 1959, p. 2996, in effect September 18, 1959. Stats. 1981, Ch. 261, in effect January 1, 1982, substituted "Article 2 (commencing with Section 48930) of Chapter 6 of Part 27 of Division 4 of, or Article 4 (commencing with Section 76060) of Chapter 1 of Part 47 of Division 7 of the Education Code" for "Article 5 (commencing at Section 10701) of Chapter 1 of Division 9 of the Education Code as enacted at the 1959 Regular Session," after "By".

Back to top


202.7. Personalty used by student governments. Personal property owned or used by student governments of the University of California or by nonprofit corporations operating student book stores of colleges affiliated with the University of California is, for purposes of this section, deemed property belonging to this state and shall be exempt from taxation.

History.—Added by Stats. 1972, p. 733, in effect March 7, 1973. Stats. 1974, Ch. 759, p. 1675, in effect January 1, 1975, added "or by nonprofit corporations operating student book stores of colleges affiliated with the University of California" after "University of California", and added ", for purposes of this section," after "is". Sec. 2 thereof provided no payment by state to local governments because of this act.

203. Colleges. (a) The college exemption is as specified in subdivision (e) of Section 3 and Section 5 of Article XIII of the California Constitution.

(b) An educational institution of collegiate grade is an institution incorporated as a college or seminary of learning that requires for regular admission the completion of a four-year high school course or its equivalent, and confers upon its graduates at least one academic or professional degree, based on a course of at least one year in flight test technology or flight test science, for which the master's degree program has been approved by the California Council for Private Postsecondary and Vocational Education or the Bureau for Private Postsecondary and Vocational Education, on a course of at least two years in liberal arts and sciences, or on a course of at least three years in professional studies, such as law, theology, education, medicine, dentistry, engineering, veterinary medicine, pharmacy, architecture, fine arts, commerce, or journalism.

(c) An educational institution of collegiate grade is not conducted for profit when it is conducted exclusively for scientific or educational purposes and no part of its net income inures to the benefit of any private person.

(d) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is both of the following:

(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with an educational institution of collegiate grade.

(2) Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income.

This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstore's gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of the bookstore property on which a property tax can be levied.

At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organization's most recent tax return filed with the Internal Revenue Service.

History.—Stats. 1972, p. 147, in effect March 7, 1973, and operative on the lien date in 1973, substituted "two" for "four" in the second paragraph. Stats. 1974, Ch. 311, p. 590, in effect January 1, 1975, substituted "subdivision (e) of Section 3 and Section 5" for "Section 1a" in the first sentence of the first paragraph. Stats. 1987, Ch. 498, in effect January 1, 1988, added "California" before "Constitution" in the first sentence of the first paragraph, and deleted "under the laws of this state," after "learning," in the first sentence of the second paragraph. Stats 1988, Ch. 1606, in effect January 1, 1989 added subdivision headings (a), (b), and (c) to the existing paragraphs and added new subdivision (d). Stats. 1998, Ch. 562 (SB 218), in effect September 18, 1998, substituted "learning that" for "learning, which" after "seminary of" and added "on a course of at least . . . and Vocational Education," after "professional degree, based" in the first sentence of the first paragraph of subdivision (b); and added "both of the following" after "extent property is" in the first sentence of subdivision (d), substituted "institution of collegiate grade." for "institution, and" in the first sentence of paragraph (1) and substituted "Primarily" for "Is primarily" before "devoted" in the first sentence and substituted "the" for "such" after "percentage of" in the second sentence of the second paragraph of subdivision (d).

Construction.—The professions specified in this section were not intended to be exclusive, and the study of acting constitutes a "professional" study within the meaning of this section. Neither is it required that a majority of students take a three- or four-year course, or that they pursue their studies until degrees are obtained. Consequently an institution otherwise meeting the requirements of this section is not deprived of its right to the exemption by reason of the fact that a majority of its students take only a two-years' course and do not receive a degree. Pasadena Playhouse Ass'n v. Los Angeles County, 69 Cal.App.2d 611.

Where an educational institution otherwise exempted by Article XIII, § 1a of the State Constitution and statutes enacted thereunder including this section, accepts transfers to it of money and other property in consideration of issuance by it of annuities and life income contracts to its donors, it does not lose the tax exempt status since the amounts paid are only payments of debts and not distribution of profits. Estate of Letts, 200 Cal.App.2d 708.

Note.—Section 4 of Stats. 1988, Ch. 1606, provided that if any provision of this act or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Sec. 5 thereof provided that no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the Legislature finds and declares that there are savings as well as costs in this act which, in the aggregate, do not result in additional net costs. Sec. 6 thereof provided that notwithstanding Section 2229, the requirements of that section shall not apply to the exemption of property for purposes of ad valorem property taxation made by this act. In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. Sec. 7 thereof provided that this act shall apply to property taxes levied for the 1989–90 fiscal year and fiscal years thereafter.

Note.—For further annotations relating to the college exemption see Article XIII, Sections 3 and 5, of the Constitution.

Back to top


203.1. Personalty used by student bookstores. Personal property owned or used by a nonprofit corporation operating a student bookstore affiliated with an educational institution, as defined in Section 203, is, for purposes of this section, deemed property belonging to such educational institution and shall be exempt from taxation.

History.—Added by Stats. 1979, Ch. 588, in effect January 1, 1980.

Note.—Section 2 of Stats. 1979, Ch. 588, provided that the Controller shall report to the Legislature on the amount of the claims made by county auditors under Section 16113 of the Government Code for compensation for property tax revenues lost by reason of the exemption of property by Section 1 of this act. Such report shall be made on or before the first day of October next following the operative date of this act, in order that the Legislature may appropriate funds for the subventions required by Section 2229 of the Revenue and Taxation Code.

203.5. Designated institutions. Property owned by the California School of Mechanical Arts, California Academy of Sciences, or Cogswell Polytechnical College, or held in trust for the Huntington Library and Art Gallery, or their successors, shall be exempt from taxation as provided in subdivision (c) of Section 4 of Article XIII of the Constitution.

History.—Added by Stats. 1974, Ch. 311, p. 591, in effect January 1, 1975.

Construction.—The California Academy of Sciences is granted a broad exemption on owned property; and it need not use its property for charitable purposes in order to qualify for exemption. California Academy of Sciences v. Fresno County, 192 Cal.App.3d 1436.

204. Cemeteries. The cemetery exemption is as specified in subdivision (g) of Section 3 of Article XIII of the Constitution.

History.—Stats. 1974, Ch. 311, p. 591, in effect January 1, 1975, substituted "subdivision (g) of Section 3" for "Section 1(b)".

Back to top


205. Veterans. The veterans' exemption is as specified in subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution.

The following are wars under subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution:

(a) Revolutionary War, April 19, 1775–January 14, 1784.

(b) Second War With England, June 18, 1812–February 17, 1815.

(c) Black Hawk War, April 6, 1832–August 2, 1832.

(d) War With Mexico, April 24, 1846–May 30, 1848.

(e) Civil War, April 18, 1861–August 20, 1866.

(f) War With Spain, April 21, 1898–April 11, 1899.

(g) War in Philippines, April 11, 1899–July 4, 1902.

(h) Chinese Relief Expedition, June 20, 1900–May 15, 1901.

(i) Campaign against the Rogue River, Yakima, Nez Percé, and Snake Indians in Oregon and Washington, 1855–1856.

(j) Campaign against the Indians in southern Oregon and Idaho and northern California and Nevada, 1865–1868.

(k) Campaign against the Cheyennes, Arapahoes, Kiowas, and Comanches in Kansas, Colorado, and Indian Territory, 1867–1869.

(l) Modoc War, 1872–1873.

(m) Campaign against the Apaches in Arizona, 1873.

(n) Campaign against the Kiowas, Comanches, and Cheyennes in Kansas, Colorado, Texas, Indian Territory, and New Mexico, 1874–1875.

(o) Campaign against the Northern Cheyennes and Sioux, 1876–1877.

(p) Nez Percé War, 1877.

(q) Bannock War, 1878.

(r) Campaign against the Northern Cheyennes, 1878–1879.

(s) Campaign against the Ute Indians in Colorado and Utah, September, 1879–November, 1880.

(t) Campaign against the Apache Indians in Arizona, 1885–1886.

(u) Campaign against the Sioux Indians in South Dakota, November, 1890–January, 1891.

(v) War With Germany-Austria, April 6, 1917–November 11, 1918.

(w) Campaign against the Apache Indians in Arizona, 1895–1896.

(x) World War II, December 7, 1941, to January 1, 1947.

(y) Campaign against the North Koreans and Chinese Communists in Korea, June 27, 1950, to January 31, 1955.

(z) Campaign against the Viet Cong and North Vietnamese Communists in South Vietnam, August 5, 1964, to May 8, 1975.

The following are campaigns under subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution:

(a) First Nicaraguan campaign.

(b) Second Nicaraguan campaign.

(c) Yangtze River campaign in China.

(d) All other campaigns for service in which a medal has been issued by the Congress of the United States.

History.—Stats. 1941, p. 1193, in effect September 13, 1941, added subsection (w). Stats. 1947 (First Extra Session 1946), p. 157, in effect May 21, 1946, added subsection (x). Stats. 1951, p. 1792, in effect May 24, 1951, added subsection (y) with the provision that it was declaratory of existing law. Stats. 1953, p. 1713, in effect September 9, 1953, substituted "January 1, 1947" for "May 16, 1946" in subsection (x). Stats. 1955, p. 1457, substituted "January 31, 1955" for provision authorizing a date to be fixed by the Governor in subsection (y). Stats. 1967, p. 3180, added subsection (z). Stats. 1974, Ch. 311, p. 591, in effect January 1, 1975, substituted "subdivisions (o), (p), (q), and (r) of Section 3" for "Section 11/4" in the first sentences of the first, second, and third paragraphs. Stats. 1976, Ch. 1092, p. 4937, in effect January 1, 1977, substituted "May 8, 1975" for provision authorizing a date to be fixed by the Governor in subsection (z).

Note.—For annotations relating to the veterans' exemption see Article XIII, Section 3, of the Constitution.

205.1. Veterans'; change in assessment ratio. Section 205 of this code fulfills the intent of subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution. To further carry out the intent of subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution, any change in assessment ratio shall not be reason to decrease the amount of the exemption or the amounts used to limit eligibility for such exemption. Whenever assessed value is used as the test of the exemption, the exemption shall be increased accordingly when the assessment ratio is increased to 100 percent. Whenever the valuation of assessable property is used to determine eligibility for such exemption based on the limitations on the value of property owned, such limitations shall be increased accordingly when the assessment ratio is increased to 100 percent to maintain the same proportionate values of such property and such limitations.

History.—Added by Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981. Stats. 1979, Ch. 260, in effect July 17, 1979, added "or the amounts used to limit eligibility for such exemption." to the first sentence and added the last sentence.

Back to top


205.5. Disabled veterans' residences. [Repealed by Stats. 2000, Ch. 1086 (SB 2195) in effect September 30, 2000.]

205.5. Disabled veterans' residences. (a) Property that constitutes the principal place of residence of a veteran, that is owned by the veteran, the veteran's spouse, or the veteran and the veteran's spouse jointly, is exempted from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), if the veteran is blind in both eyes, has lost the use of two or more limbs, or if the veteran is totally disabled as a result of injury or disease incurred in military service. The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible veteran whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).

(b) (1) For purposes of this section, "veteran" means either of the following:

(A) A veteran as specified in subdivision (o) of Section 3 of Article XIII of the California Constitution without regard to any limitation contained therein on the value of property owned by the veteran or the veteran's spouse.

(B) Any person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease, died while on active duty in military service. The United States Department of Veterans Affairs shall determine whether an injury or disease is service connected.

(2) For purposes of this section, property is deemed to be the principal place of residence of a veteran, disabled as described in subdivision (a), who is confined to a hospital or other care facility, if that property would be that veteran's principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. A family member that resides at the residence is not considered to be a third party.

(c) (1) Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a deceased veteran is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of a veteran who was blind in both eyes, had lost the use of two or more limbs, or was totally disabled provided that either of the following conditions is met:

(A) The deceased veteran during his or her lifetime qualified in all respects for the exemption or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.

(B) The veteran died from a disease that was service connected as determined by the United States Department of Veterans Affairs. The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).

(2) Commencing with the 1994–95 fiscal year, property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran as described in subparagraph (B) of paragraph (1) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000), as adjusted for the relevant assessment year as provided in subdivision (h). The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), as adjusted for the relevant assessment year as provided in subdivision (h), in the case of an eligible unmarried surviving spouse whose household income does not exceed the amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g).

(3) Beginning with the 2012-13 fiscal year and for each fiscal year thereafter, property is deemed to be the principal place of residence of the unmarried surviving spouse of a deceased veteran, who is confined to a hospital or other care facility, if that property would be the unmarried surviving spouse's principal place of residence were it not for his or her confinement to a hospital or other care facility, provided that the residence is not rented or leased to a third party. For purposes of this paragraph, a family member who resides at the residence is not considered to be a third party.

(d) As used in this section, "property that is owned by a veteran" or "property that is owned by the veteran's unmarried surviving spouse" includes all of the following:

(1) Property owned by the veteran with the veteran's spouse as a joint tenancy, tenancy in common, or as community property.

(2) Property owned by the veteran or the veteran's spouse as separate property.

(3) Property owned with one or more other persons to the extent of the interest owned by the veteran, the veteran's spouse, or both the veteran and the veteran's spouse.

(4) Property owned by the veteran's unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veteran's unmarried surviving spouse.

(5) So much of the property of a corporation as constitutes the principal place of residence of a veteran or a veteran's unmarried surviving spouse when the veteran, or the veteran's spouse, or the veteran's unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any provision of law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.

(e) For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less, or concentric contraction of the visual field to 5 degrees or less; losing the use of a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis; and being totally disabled means that the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.

(f) An exemption granted to a claimant in accordance with the provisions of this section shall be in lieu of the veteran's exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the California Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption has been granted under the provisions of this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.

(g) Commencing on January 1, 2002, and for each assessment year thereafter, the household income limit shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.

(h) Commencing on January 1, 2006, and for each assessment year thereafter, the exemption amounts set forth in subdivisions (a) and (c) shall be compounded annually by an inflation factor that is the annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent, in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations.

History.—Added by Stats. 1974, Ch. 311, p. 592, in effect January 1, 1975. Stats. 1975, Ch. 662, p. 1449, in effect September 10, 1975, added "or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation" after "disability at 100 percent" in subdivision (b). Stats. 1976, Ch. 47, p. 77, in effect March 17, 1976, deleted "(q)," after "(p)," in subdivision (a); and added "or the military service from which such veteran was discharged" after "Administration", and substituted "substantially" for "substantial" in subdivision (b). Stats. 1976, Ch. 681, p. 1677, in effect January 1, 1977, relettered the former subdivisions (b), (d), and (e) as subdivisions (f), (e), and (g), respectively; revised subdivisions (a), (c), (e), and (g); added the balance of subdivision (c) after "disabled"; added the balance of the second sentence of subdivision (g) after "of this section"; and added subdivisions (b) and (d). Stats. 1977, Ch. 961, in effect January 1, 1978, substituted "exempted" for "exempt" in subdivision (a), substituted "(o)" for "(a)" in subdivision (b), and substituted "or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977." for "under the laws in effect during his or her lifetime." in subdivision (d). Deleted "subsection" in the second and third sentence of paragraph (5) of subdivision (e) and replaced it by "paragraph". Deleted "(q)," after "(p)" and corrected "coown" to "co-own" in subdivision (g). Stats. 1978, Ch. 1276, in effect January 1, 1979 added the clause regarding disability caused through disease; added the last sentence of subdivision (a) and the provision following the January 1, 1977, date in subdivision (d). Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981, substituted "full" for "assessed" before "value" and "forty thousand dollars ($40,000)" for "ten thousand dollars ($10,000)" and "sixty thousand dollars ($60,000)" for "fifteen thousand dollars ($15,000)" in both subdivision (a) and subdivision (d), and substituted "specified" for "defined" before "in Section 20504" in subdivision (d). Stats. 1984, Ch. 1332, in effect January 1, 1985, deleted ", or is totally disabled" after "limbs" and added "or that does not exceed one hundred thousand dollars . . . military service" after "service" in the first sentence and added "forty thousand dollars ($40,000) before "exemption", and substituted "an eligible" for "such a" before "veteran" in the second sentence of subdivision (a); added "in the case of a veteran . . . totally disabled" after "($40,000)" and added "forty thousand dollars ($40,000)" before "exemption" and substituted "an eligible" for "such an" after "of" in the second sentence of subdivision (d); added "all of the following" after "includes" in subdivision (e) and substituted "the" for "such" in subsection (5) thereof; and added subdivision (h). Stats. 1986, Ch. 608, effective January 1, 1987, added "(q)," after "(p)," in the first sentence of subdivision (g). Stats. 1988, Ch. 411, in effect January 1, 1989, deleted former subdivision (c) and relettered the former subdivisions (d), (e), (f), (g), and (h) as (c), (d), (e), (f) and (g) respectively. Stats. 1989, Ch. 1077, in effect January 1, 1990, added ", and the one hundred thousand . . . ($150,000)," after "($60,000)" in the second sentences of subdivisions (a) and (c). Stats. 1993, Ch. 140, in effect January 1, 1994, substituted "that" for "which" after "Property" and after "by, and" in the first sentence of subdivisions (a) and (c); added "means . . . following:" after "veteran", deleted "is defined as specified in subdivision (o) of Section 3 of Article XIII of the Constitution without regard to any limitation contained therein on the value of property owned by the veteran or the veteran's spouse.", and added paragraphs (1) and (2) to subdivision (b); established former subdivision (c) as paragraph (1) of subdivision (c), and added paragraph (2) to subdivision (c); substituted "that" for "which" after "property" in the first sentence of subdivision (d); and substituted "the" for "such" after "from which" in subdivision (e). Stats. 1995, Ch. 536, in effect October 4, 1995, substituted "2001" for "1996" after "until January 1," and substituted "that" for "which" after "enacted statute" in subdivision (g). Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "United States Department of Veterans Affairs" for "Veterans Administration" in paragraph (2) of subdivision (b), in subparagraph (B) of paragraph (1) of subdivision (c), and in subdivision (e); substituted "totally disabled provided that either of the following conditions is met:" for "totally disabled; provided that the" after "veteran who was", substituted "1977." for "1977; or provided that the" after "January 1,", and created subparagraphs (A) and (B) of paragraph (1) of subdivision (c), with the former text of paragraph (1) following "veteran who was"; substituted "that" for "which" in subparagraph (B) of paragraph (1) of subdivision (c). Stats. 2000, Ch. 1086 (SB 2195), in effect September 30, 2000, deleted "forty thousand dollars ($40,000), if the veteran is blind in both eyes or has lost the use of two or more limbs as a result of injury or disease incurred in military service or that does not exceed" after "not exceed", added "blind in both eyes, has lost the use of two or more limbs, or if the veteran is" after "the veteran is" in the first sentence, deleted "forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), and the" and substituted "one-hundred-thousand-dollar" for "one hundred thousand dollar" after "The", deleted "as defined in Section 20504" after "household income", and substituted "amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g)" for "amounts specified in Section 20585" after "exceed the" in the second sentence of subdivision (a); deleted "forty thousand dollars ($40,000), in the case of a veteran who was blind in both eyes or had lost the use of two or more limbs, or" after "does not exceed" and added "was blind in both eyes, had lost the use of two or more limbs, or" after "veteran who" in the first sentence of the first paragraph, and deleted "forty thousand dollars ($40,000) exemption shall be sixty thousand dollars ($60,000), and the" after "the", substituted "one-hundred-thousand-dollar" for "one hundred thousand dollar" before "($100,000)", deleted "as specified in Section 20504" after "household income", and substituted "amount of forty thousand dollars ($40,000), as adjusted for the relevant assessment year as provided in subdivision (g)" for "amounts specified in Section 20585" after "not exceed the" in the first sentence of the second paragraph of subdivision (c)(1); substituted "one-hundred-thousand-dollar" for "one hundred thousand dollar" after "The", deleted "as specified in Section 20504" after "household income", and substituted "amount of forty thousand dollars ($40,000), as adjusted for relevant assessment year as provided in subdivision (g)" for "amounts specified in Section 20585" after "exceed the" in the second sentence of subdivision (c)(2); and added ", or concentric contraction of the visual field to 5 degrees or less" after "or less" in the first sentence of subdivision (e); and substituted subdivision (g) for former subdivision (g), which provided that the section would be repealed absent the enactment of a later statute. Stats. 2001, Ch. 407 (SB 1181), in effect January 1, 2002, substituted "Commencing on January 1, 2002, and for each assessment year thereafter, the household income limit shall be compounded annually" for "To determine, for taxes that attach as a lien in 2002 and in each calendar year thereafter, whether the lower or higher exemption amount governs the amount of an exemption under this section, each household income amount applied under subdivision (a) or (c) for taxes that attached as a lien during the immediately preceding calendar year shall be adjusted" before "by an" and substituted "annual percentage change, measured from February to February of the two previous assessment years, rounded to the nearest one-thousandth of 1 percent," for "percentage change, rounded to the nearest one-thousandth of 1 percent, from October of the prior fiscal year to October of the current fiscal year," after "factor that is the" in the first sentence of subdivision (g). Stats. 2003, Ch. 278 (AB 322), in effect September 4, 2003, deleted "is owned by, and that" after "Property that", deleted a comma after "of residence of", and added ", that is owned by the veteran, the veteran's spouse, or the veteran and the veteran's spouse jointly," after "of a veteran" in the first sentence of subdivision (a); designated the first sentence of subdivision (b) as new paragraph (1), renumbered former paragraphs (1) and (2) as subparagraphs (A) and (B), added "deceased" after "spouse of a" in the first sentence of paragraph (1) in subdivision (c); and added paragraph (2) in subdivision (b); and substituted "California Constitution" for "Constitution" throughout the text. Stats. 2004, Ch. 544 (SB 764), in effect September 16, 2004, added "as adjusted for the relevant assessment year as provided in subdivision (h)," after "($100,000)," in the first sentence, substituted "one hundred thousand dollar" for "one-hundred-thousand-dollar" after "The" and added "as adjusted for the relevant assessment year as provided in subdivision (h)," after "($150,000)," in the second sentence of subdivision (a); added "as adjusted for the relevant assessment year as provided in subdivision (h)," after "($100,000)," in the first sentence of paragraph (1), substituted "one hundred thousand dollar" for "one-hundred-thousand-dollar" after "The" and added "as adjusted for the relevant assessment year as provided in subdivision (h)," after "($150,000)," in the second sentence of subparagraph (B) thereof, added ", as adjusted for the relevant assessment year as provided in subdivision (h)" after "($100,000)" in the first sentence and substituted "one hundred thousand dollar" for "one-hundred-thousand-dollar" after "The", and added "as adjusted for the relevant assessment year as provided in subdivision (h)," after "($150,000)," in the second sentence of paragraph (2) of subdivision (c); and added subdivision (h). Stats. 2011, Ch. 202 (AB 188), in effect January 1, 2012, added "as adjusted for the relevant assessment year as provided in subdivision (h)," after "(100,0000)," in the first sentence of paragraph (1), substituted "subparagraph (B) of paragraph (1)" for "paragraph (2)" after "described in" in the first sentence of paragraph (2), and added paragraph (3) of subdivision (c).

Note.—Section 7 of Stats. 1975, Ch. 662, provided that no appropriation shall be made pursuant to Section 1 of this act because there are minor savings as well as minor costs in this act which, in the aggregate, do not result in significant identifiable cost changes. Section 3 of Stats. 1976, Ch. 681, p. 1679, provided no payment by state to local governments because of this act. Sec. 4 thereof provided that this act shall have prospective application only.

Note.—Section 3 of Stats. 1984, Ch. 1331, provided the Controller shall report to the Legislature on the amount of claims made by county auditors under Section 16113 of the Government Code for compensation for property tax revenues lost by reason of the classification or exemption of property by this act. The report shall be made on or before the first day of October next following the operative date of this act for claims made under subdivision (a) of Section 16113 and shall be made on or before the first day of December next following the operative date of this act for claims made under subdivision (b) of Section 16113. The report shall be made in order that the Legislature may appropriate funds for the subventions required by Section 2229 of the Revenue and Taxation Code. Section 4 provided no payment by state to local governments because of this act.

Note.—Section 4 of Stats. 1988, Ch. 411 provided that this act makes a classification or exemption of property for purposes of ad valorem property taxation within the meaning of Section 2229 of the Revenue and Taxation Code. Sec. 5 thereof provided that the amendments to the section made by this act are declaratory of existing law.

Note.—Section 1 of Stats. 2003, Ch. 278 (AB 322) provided that

(a) The Legislature of the State of California finds and declares the following:

(1) The California Constitution allows the Legislature to establish an exemption from property taxes for the home of a disabled veteran or the spouse of a disabled veteran, including the unmarried surviving spouse of a disabled veteran.

(2) A disabled veteran is defined by law as a veteran who, because of an injury incurred in military service is blind in both eyes, has lost the use of two or more limbs, is totally disabled, or who, as a result of service-connected injury, died while in active military service.

(3) The Revenue and Taxation Code authorizes a property tax exemption for property owned by a disabled veteran, if that property constitutes the principal place of residence of the disabled veteran.

(4) The Revenue and Taxation Code also authorizes a property tax exemption for property owned by an unmarried surviving spouse of a disabled veteran, if that property constitutes the principal place of residence of the unmarried surviving spouse.

(5) There are many disabled veterans who own property that qualifies for the disabled veterans' property tax exemption, but due to the fact that these disabled veterans are confined to hospitals or other medical institutions they are unable to occupy that property as their principal place of residence. In many cases the spouses of these disabled veterans continue to occupy the property as their principle place of residence.

(b) It is the intent of the Legislature in enacting this act to amend the Revenue and Taxation Code to conform with the California Constitution to further extend the disabled veterans' property tax exemption to property owned by the spouse of a living disabled veteran while that disabled veteran is confined to a hospital or other care facility and to extend the veterans' property tax exemption to an otherwise qualifying veteran who is unable to occupy that property as his or her principal place of residence because he or she is confined to a hospital or other care facility, provided that the property is not rented or leased to a third party.

Section 4 thereof provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Section 5 thereof provided that this act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.

Note.—Section 2 of Stats. 2004, Ch. 544 (SB 764) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state may not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Section 3 thereof provided that notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.

Section 4 thereof provided that this act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.

Note.—Section 3 of Stats. 1989, Ch. 1078 provided that notwithstanding Section 2229 of the Revenue and Taxation Code, the requirements of that section relating to any exemption of property for more than five years or for more than 75 percent of the value thereof shall not apply to the exemption made by this act. Sec. 4 thereof provided that section 1 of this act shall be applicable to property taxes levied for the 1990–91 fiscal year through the 1995–96 fiscal year and that Section 2 thereof shall be applicable to property taxes levied for the 1996–97 fiscal year and fiscal years thereafter.

Note.—Section 3 of Stats. 2000, Ch. 1086 (SB 2195), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Note.—Section 12 of Stats. 2001, Ch. 407 (SB 1181) provided that notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.

Back to top


205.6. Disabled veterans' exemption; assessors to supply information to the board. In order to prevent duplications of the disabled veterans' property tax exemption within the state and improper overlapping with other benefits provided by law, county assessors may supply information from disabled veterans' property tax exemption claims and county records as is specified by written request of the board necessary to fully identify all disabled veterans' property tax exemption claims allowed by the assessors. The board may specify that the information include all or a part of the names and social security numbers of claimants and spouses and the identity and location of the dwelling to which the exemption applies. The information may be required in the form of data-processing media or other media and in such format as is compatible with the recordkeeping processes of the counties and the auditing procedures of the state.

History.—Added by Stats. 2009, Ch. 204 (SB 822), in effect January 1, 2010.

205.7. Blind veterans' residences. [Repealed by Stats. 1975, Ch. 224, p. 602, in effect January 1, 1976.]

206. Churches. The church exemption is as specified in subdivision (f) of Section 3 and Section 5 of Article XIII of the Constitution.

History.—Stats. 1974, Ch. 311, p. 593, in effect January 1, 1975, substituted "subdivision (f) of Section 3 and Section 5" for "Section 11/2".

206.1. Church parking area. [Repealed by Stats. 1996, Ch. 1169, in effect September 30, 1996.]

206.1. Churches; parking area. (a) Pursuant to the authority of subdivision (d) of Section 4 of Article XIII of the California Constitution, and in accordance with subdivision (b) of this section, all real property that is necessarily and reasonably required for the parking of automobiles of persons who are attending religious services, or are engaged in religious services or worship or any religious activity, is exempt from taxation.

(b) For purposes of the exemption established by subdivision (a), all of the following shall apply:

(1) "Real property" means land and improvements or a possessory interest in land and improvements.

(2) The real property is not required to be contiguous to the land on which the church or other structure used for religious services or as the place of worship or religious activity is located.

(3) The real property is not at other times used for commercial purposes. For purposes of this paragraph, "commercial purposes" does not include use of the property for the parking of vehicles or bicycles, the revenue from which does not exceed the ordinary and necessary costs of maintaining the real property.

(4) The exemption shall apply to otherwise qualifying land and improvements regardless of whether the land and improvements are owned by the church, religious denomination, or sect using the land and improvements for the parking of automobiles by persons described in subdivision (a). However, the exemption shall apply to land and improvements that are not owned by the church, religious denomination, or sect using the land and improvements for the parking of automobiles by persons described in subdivision (a) only as long as all of the following conditions are met:

(A) The congregation of the church, religious denomination, or sect is no greater than 500 members.

(B) The church, religious denomination, or sect is engaged in a lease of the land and improvements for the exclusive purpose of the parking of automobiles by persons described in subdivision (a).

(C) The church, religious denomination, or sect is responsible, under the terms of its lease with the fee owner of the land and improvements, for paying the property taxes levied on the land and improvements. For purposes of this subparagraph, paying property taxes levied on land and improvements includes reimbursement paid to the fee owner of the land and improvements for those taxes.

(D) The real property is used exclusively for the parking of automobiles by persons described in subdivision (a).

(E) The fee owner of the real property and the county agree that the fee owner shall pay the total amount of taxes that would be levied on the real property for the current fiscal year and the first two subsequent fiscal years in the absence of a grant of exemption pursuant to this paragraph for the current fiscal year, if the real property is used for any purposes other than that specified in subparagraph (D) during either of those two subsequent fiscal years.

History.—Added by Stats. 1996, Ch. 1169, in effect September 30, 1996.

Back to top


206.2. Lease of church property. Any reduction in property taxes on leased property used exclusively for religious worship and granted the church exemption shall inure to the benefit of the organization entitled to the exemption. If the lease or rental agreement does not specifically provide that the church exemption is taken into account in fixing the terms of the agreement, the tenant shall receive a reduction in rental payments, or a refund of such payments, if paid, for each month of occupancy, or portion thereof, during the fiscal year equal to one-twelfth of the property taxes not paid during such fiscal year by reason of the church exemption.

History.—Added by Stats. 1977, Ch. 522, in effect January 1, 1978.

Note.—This act shall apply to contracts entered into on and after the effective date of this act.

207. Religious exemption. Property used exclusively for religious purposes shall be exempt from taxation. Property owned and operated by a church and used for religious worship, preschool purposes, nurseryschool purposes, kindergarten purposes, school purposes of less than collegiate grade, or for purposes of both schools of collegiate grade and schools less than collegiate grade but excluding property used solely for purposes of schools of collegiate grade, shall be deemed to be used exclusively for religious purposes under this section.

The exemption provided by this section is granted pursuant to the authority in subdivision (b) of Section 4 of Article XIII of the California Constitution, and shall be known as the "religious exemption."

This section shall be effective for the 1977–78 fiscal year and fiscal years thereafter.

History.—Added by Stats. 1981, Ch. 542, in effect January 1, 1982. Stats. 1983, Ch. 120, in effect June 22, 1983, substituted "1977–78" for "1982–83" in the third paragraph.

Note.—Section 1 of Stats. 1981, Ch. 542, provided that the purpose of this act is to provide a simple, streamlined claims process for churches and church schools in filing for property tax exempt status, effective with the 1982–83 fiscal year.

The creation of a "religious exemption" by this act will allow any church to file either for the "church exemption" or the "religious exemption." A church which operates a church school, which formerly had to file a church exemption for the church property, and a welfare exemption for the school portion of the property, will henceforth be able to file a "religious exemption" for the entire property. After an initial claim, the exemption remains in effect until the property is no longer eligible for the exemption, with minimal annual filing requirements thereafter.

The "welfare exemption" remains applicable to some religious purposes, such as hospitals, educational FM radio or television stations, and certain housing owned by churches, which will continue to be covered by that exemption alone. Church schools may also continue to file for that exemption if desired, but the "religious exemption" offers the simplified claims process.

Note.—Section 8 of Stats. 1981, Ch. 542, provided no payment by state to local government as a result of this act because there are savings as well as costs in this act which, in the aggregate, do not result in additional net costs.

207.1. Religious exemption; property leased to churches. Personal property leased to a church and used exclusively for the purposes described in Section 207 shall be deemed to be used exclusively for religious purposes under that section.

The exemption provided by this section is granted pursuant to the authority in Section 2 of Article XIII of the California Constitution.

History.—Added by Stats. 1998, Ch. 591 (SB 2237), in effect January 1, 1999.

Back to top


208. Bonds. The bonds exemption is as specified in subdivision (c) of Section 3 of Article XIII of the Constitution.

History.—Stats. 1974, Ch. 311, p. 593, in effect January 1, 1975, substituted "subdivision (c) of Section 3" for "Section 13/4 ".

209. Vessels. The exemption of certain vessels from taxation except for state purposes is as specified in subdivision (l) of Section 3 of Article XIII of the Constitution.

History.—Stats. 1974, Ch. 311, p. 593, in effect January 1, 1975, substituted "subdivision (z) of Section 3" for "Section 4".

209.5. Vessels under construction. All right, title or interest in or to any vessel of more than 50 tons burden or 100 tons displacement, and the materials and parts held by the builder of the vessel at the site of construction for the specific purpose of incorporation therein, shall be exempt from taxation except for state purposes, while the vessel is under construction within this state.

History.—Added by Stats. 1958 (First Extra Session), p. 251, in effect July 23, 1958. Stats. 1959, p. 2190, in effect May 5, 1959, substituted "50 tons burden or 100 tons displacement" for "1,000 tons burden."

Construction.—As used in this section the term "tons burden" refers to the net tons of the vessel and not the gross tons. Favalora v. Humboldt County, 55 Cal.App.3d 969. The legislative intent behind this section was to provide a separate form of local tax relief for the California shipbuilding industry without restriction as to the nature of the contemplated maritime use of the vessel under construction. Kaiser Steel Corp. v. Solano County, 90 Cal.App.3d 662.

210. Householders. [Repealed by Stats. 1979, Ch. 516, in effect January 1, 1980.]

210.5. Surviving spouse of established household. [Repealed by Stats. 1979, Ch. 516, in effect January 1, 1980.]

Back to top


211. Trees and vines. (a) (1) The exemption of fruit- and nut-bearing trees until four years after the season in which they were planted in orchard form and grapevines until three years after the season in which they were planted in vineyard form is as specified in subdivision (i) of Section 3 of Article XIII of the California Constitution.

(2) For purposes of exemption pursuant to this subdivision, any fruit- or nut-bearing tree, or any grapevine, severely damaged during the exemption period by the December 1990 freeze so as to require pruning to the trunk or bud union to establish a new shoot as a replacement for the damaged tree or grapevine, shall be considered a new planting in orchard or vineyard form.

(3) For purposes of exemption pursuant to this subdivision, any fruit- or nut-bearing tree severely damaged during the exemption period by the December 1998 freeze or the January 2007 freeze so as to require pruning to the trunk or bud union to establish a new shoot as a replacement for the damaged tree shall be considered a new planting in orchard form.

(4) For purposes of exemption pursuant to this subdivision, any fruit- or nut-bearing tree, or any grapevine, severely damaged during the exemption period by the extremely strong and damaging winds that commenced on October 20, 2007, that were the subject of the Governor's November 2, 2007, proclamation of a state of emergency so as to require pruning to the trunk or bud union to establish a new shoot as a replacement for the damaged tree or grapevine, shall be considered a new planting in orchard form.

(5) For purposes of exemption pursuant to this subdivision, any fruit- or nut-bearing tree, or any grapevine, severely damaged during the exemption period by the wildfires that commenced on October 21, 2007, that were the subject of the Governor's October 21, 2007, proclamation of a state of emergency so as to require pruning to the trunk or bud union to establish a new shoot as a replacement for the damaged tree or grapevine, shall be considered a new planting in orchard form.

(b) The exemption of timber is as specified in subdivision (j) of Section 3 of Article XIII of the California Constitution and Section 436.

History.—Added by Stats. 1974, Ch. 311, p. 594, in effect January 1, 1975. Stats. 1978, Ch. 1112, in effect January 1, 1979, deleted the word "orchard" and replaced it with the word "vineyard" and in the second sentence deleted the words "immature forest trees" and replaced it with the word "timber" and added "and Section 436.". Stats. 1991, Ch. 1034, in effect October 14, 1991, added subdivision letter (a) before "The exemption of fruit-", added the second sentence in subdivision (a), and added subdivision letter (b) before "The exemption of timber". Stats. 1999, Ch. 291 (SB 1014), in effect September 1, 1999, added the third sentence in subdivision (a). Stats. 2007, Ch. 225 (AB 297), in effect September 21, 2007, added "or the January 2007 freeze" after "December 1998 freeze" in the third sentence of subdivision (a). Stats. 2008, Ch. 356 (SB 1562), in effect September 26, 2008, numbered the former first, second, and third sentences of the former first paragraph of subdivision (a) as paragraphs (1), (2), and (3) thereof, respectively, and added paragraphs (4) and (5) thereto and substituted "California Constitution" for "Constitution" after "Article XIII of the" twice in subdivisions (a) and (b).

Note.—Section 2 of Stats. 1991, Ch. 1034, provided that notwithstanding Section 2229 of the Revenue and Taxation Code, the requirements of that section relating to any exemption of property for more than five years or for more than 75 percent of the value thereof, shall not apply to any exemption made by this act. In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Note.—Section 2 of Stats. 1999, Ch. 291 (SB 1014) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

212. Intangibles; money kept on hand. (a) Notes, debentures, shares of capital stock, solvent credits, bonds, deeds of trust, mortgages, and any interest in that property are exempt from taxation.

(b) Money kept on hand to be used in the ordinary and regular course of a trade, profession, or business is exempt from taxation.

(c) Intangible assets and rights are exempt from taxation and, except as otherwise provided in the following sentence, the value of intangible assets and rights shall not enhance or be reflected in the value of taxable property. Taxable property may be assessed and valued by assuming the presence of intangible assets or rights necessary to put the taxable property to beneficial or productive use.

History.—Stats. 1967, p. 3905, in effect August 31, 1967, added "solvent credits" to first paragraph, and all of last paragraph. Stats. 1995, Ch. 498, in effect January 1, 1996, added the subdivision letters (a) and (b); substituted "that" for "such" after "interest in" in subdivision (a); and added subdivision (c).

Federal reserve and national bank notes.—Federal reserve notes and national bank notes are not exempted by this section. Beery v. Los Angeles County, 116 Cal.App.2d 290.

Back to top


213. Exhibits. The exhibition exemption is as specified in this section.

Personal property which comes within all the following descriptions is exempt from taxation:

(a) The property is brought into this State exclusively for purposes of use or exhibition at any exposition, fair, carnival or public exhibit of literary, scientific, educational, religious or artistic works in this State and is used only for these purposes while in this State.

(b) It is intended to remove the property from the State following its use or exhibition here.

(c) The property is subject to taxation in some other state or a foreign country while in this State and all taxes due in the other state or country are paid when the exemption is claimed.

213.5. Exempt property as polling place. In partial consideration of the public services provided to property exempted from taxation by Section 214, the owner or person in possession shall permit the free use of such property or portion thereof as a polling place at any election conducted by the registrar of voters if the registrar makes written request for the use of such property at least 60 days before the date of the election. The registrar shall not be entitled to the use of any property used for the practice of religion if the owner or possessor files with him at least 45 days before the election an affidavit that (a) the space requested will be required for the ordinary and usual purposes of the owner or possessor on the day of the election, setting forth what such use will be, or (b) by reason of any contract, or condition, or covenant in a deed, made or delivered before July 1, 1965, the use of any portion of such property by the registrar of voters would breach such contract, condition, or covenant. The registrar shall not be entitled to the use of other property if an affidavit under (b) is filed with him.

As used in this section, registrar of voters means county clerk in counties having no registrar of voters.

A county using this section shall insure itself, its employees, the owner, and the person in possession of the property against any liability for any injury connected with the use of the property as a polling place.

Use of property under this section shall be considered to be exclusively for religious, hospital, or charitable purposes.

History.—Added by Stats. 1965, p. 2475, in effect September 17, 1965.

213.6. Organization incorporated by act of Congress. [Repealed by Stats. 1986, Ch. 74, effective April 25, 1986.]

213.6. Organization incorporated by act of Congress. [Repealed, operative January 1, 1996, by its own terms.]

Back to top


213.7. Volunteer fire department property. (a) As used in Section 214, "property used exclusively for religious, hospital, scientific or charitable purposes" shall include the property of a volunteer fire department that is used exclusively for volunteer fire department purposes, provided that the department qualifies for exemption either under Section 23701d or 23701f of this code or under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code. This section shall not be construed to enlarge the "welfare exemption" to apply to organizations qualified under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code, but not otherwise qualified for the "welfare exemption" under other provisions of this code.

(b) As used in this section, "volunteer fire department" means any fund, foundation or corporation regularly organized for volunteer fire department purposes, that qualified as an exempt organization on or before January 1, 1969, either under Section 23701d or 23701f of this code or under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code, having official recognition and full or partial support of the government of the county, city, or district in which the volunteer fire department is located, and that has functions having an exclusive connection with the prevention and extinguishing of fires within the area of the county, city, or district extending official recognition for the benefit of the public generally and to lessen the burdens of the entity of government which would otherwise be obligated to furnish such fire protection.

(c) For purposes of subdivision (a), an organization shall not be deemed to be qualified as an exempt organization unless the organization files with the assessor a valid organizational clearance certificate issued pursuant to Section 254.6.

History.—Added by Stats. 1968, p. 238, in effect November 13, 1968. Stats. 1969, p. 487, in effect November 10, 1969, added the language in the first sentence following the semicolon, the second sentence and the second paragraph. Stats. 1986, Ch. 1457, effective January 1, 1987, added the subdivision letters; added "either" after "exemption" in the first sentence of the first paragraph, and added "either" after "1969," in the first sentence of the second paragraph of subdivision (a); and added subdivision (b). Stats. 1990, Ch. 126, in effect June 11, 1990, substituted a comma for a semicolon before "provided", deleted "of 1954" before "This section" in the first paragraph of subdivision (a) and deleted "of 1954" before "having official" in the second paragraph of subdivision (a). Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, substituted "that" for "which" after "department" in the first sentence of subdivision (a); designated the former second paragraph of subdivision (a) as subdivision (b) and substituted "the" for "such" after "district in which", added a comma after "city" twice, and substituted "that" for "which" twice therein; and relettered former subdivision (b) as subdivision (c) and substituted "a valid organizational clearance certificate issued pursuant to Section 254.6" for "duplicate copies of a valid, unrevoked letter or ruling from either the Franchise Tax Board or, in the alternative, the Internal Revenue Service, which states that the organization qualifies as an exempt organization under the appropriate provisions of the Bank and Corporation Tax Law or the Internal Revenue Code" after "with the assessor" in the first sentence therein.

Back to top


214. Welfare exemption. (a) Property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by community chests, funds, foundations, limited liability companies, or corporations organized and operated for religious, hospital, scientific, or charitable purposes is exempt from taxation, including ad valorem taxes to pay the interest and redemption charges on any indebtedness approved by the voters prior to July 1, 1978, or any bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition, if:

(1) The owner is not organized or operated for profit. However, in the case of hospitals, the organization shall not be deemed to be organized or operated for profit if, during the immediately preceding fiscal year, operating revenues, exclusive of gifts, endowments and grants-in-aid, did not exceed operating expenses by an amount equivalent to 10 percent of those operating expenses. As used herein, operating expenses include depreciation based on cost of replacement and amortization of, and interest on, indebtedness.

(2) No part of the net earnings of the owner inures to the benefit of any private shareholder or individual.

(3) The property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.

(A) For the purposes of determining whether the property is used for the actual operation of the exempt activity, consideration shall not be given to use of the property for either or both of the following described activities if that use is occasional:

(i) The owner conducts fundraising activities on the property and the proceeds derived from those activities are not unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, of the owner and are used to further the exempt activity of the owner.

(ii) The owner permits any other organization that meets all of the requirements of this subdivision, other than ownership of the property, to conduct fundraising activities on the property and the proceeds derived from those activities are not unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, of the organization, are not subject to the tax on unrelated business taxable income that is imposed by Section 511 of the Internal Revenue Code, and are used to further the exempt activity of the organization.

(B) For purposes of subparagraph (A):

(i) "Occasional use" means use of the property on an irregular or intermittent basis by the qualifying owner or any other qualifying organization described in clause (ii) of subparagraph (A) that is incidental to the primary activities of the owner or the other organization.

(ii) "Fundraising activities" means both activities involving the direct solicitation of money or other property and the anticipated exchange of goods or services for money between the soliciting organization and the organization or person solicited.

(C) Subparagraph (A) shall have no application in determining whether paragraph (3) has been satisfied unless the owner of the property and any other organization using the property as provided in subparagraph (A) have filed with the assessor a valid organizational clearance certificate issued pursuant to Section 254.6.

(D) For the purposes of determining whether the property is used for the actual operation of the exempt activity, consideration shall not be given to the use of the property for meetings conducted by any other organization if the meetings are incidental to the other organization's primary activities, are not fundraising meetings or activities as defined in subparagraph (B), are held no more than once per week, and the other organization and its use of the property meet all other requirements of paragraphs (1) to (5), inclusive, of this subdivision. The owner or the other organization also shall file with the assessor a copy of a valid, unrevoked letter or ruling from the Internal Revenue Service or the Franchise Tax Board stating that the other organization, or the national organization of which it is a local chapter or affiliate, qualifies as an exempt organization under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code or Section 23701d, 23701f, or 23701w.

(E) Nothing in subparagraph (A), (B), (C), or (D) shall be construed to either enlarge or restrict the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(4) The property is not used or operated by the owner or by any other person so as to benefit any officer, trustee, director, shareholder, member, employee, contributor, or bondholder of the owner or operator, or any other person, through the distribution of profits, payment of excessive charges or compensations, or the more advantageous pursuit of their business or profession.

(5) The property is not used by the owner or members thereof for fraternal or lodge purposes, or for social club purposes except where that use is clearly incidental to a primary religious, hospital, scientific, or charitable purpose.

(6) The property is irrevocably dedicated to religious, charitable, scientific, or hospital purposes and upon the liquidation, dissolution, or abandonment of the owner will not inure to the benefit of any private person except a fund, foundation, or corporation organized and operated for religious, hospital, scientific, or charitable purposes.

(7) The property, if used exclusively for scientific purposes, is used by a foundation or institution that, in addition to complying with the foregoing requirements for the exemption of charitable organizations in general, has been chartered by the Congress of the United States (except that this requirement shall not apply when the scientific purposes are medical research), and whose objects are the encouragement or conduct of scientific investigation, research, and discovery for the benefit of the community at large.

The exemption provided for herein shall be known as the "welfare exemption." This exemption shall be in addition to any other exemption now provided by law, and the existence of the exemption provision in paragraph (2) of subdivision (a) of Section 202 shall not preclude the exemption under this section for museum or library property. Except as provided in subdivision (e), this section shall not be construed to enlarge the college exemption.

(b) Property used exclusively for school purposes of less than collegiate grade and owned and operated by religious, hospital, or charitable funds, foundations, limited liability companies, or corporations, which property and funds, foundations, limited liability companies, or corporations meet all of the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(c) Property used exclusively for nursery school purposes and owned and operated by religious, hospital, or charitable funds, foundations, limited liability companies, or corporations, which property and funds, foundations, limited liability companies, or corporations meet all the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(d) Property used exclusively for a noncommercial educational FM broadcast station or an educational television station, and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations meeting all of the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(e) Property used exclusively for religious, charitable, scientific, or hospital purposes and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations or educational institutions of collegiate grade, as defined in Section 203, which property and funds, foundations, limited liability companies, corporations, or educational institutions meet all of the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section. As to educational institutions of collegiate grade, as defined in Section 203, the requirements of paragraph (6) of subdivision (a) shall be deemed to be met if both of the following are met:

(1) The property of the educational institution is irrevocably dedicated in its articles of incorporation to charitable and educational purposes, to religious and educational purposes, or to educational purposes.

(2) The articles of incorporation of the educational institution provide for distribution of its property upon its liquidation, dissolution, or abandonment to a fund, foundation, or corporation organized and operated for religious, hospital, scientific, charitable, or educational purposes meeting the requirements for exemption provided by Section 203 or this section.

(f) Property used exclusively for housing and related facilities for elderly or handicapped families and financed by, including, but not limited to, the federal government pursuant to Section 202 of Public Law 86-372 (12 U.S.C. Sec. 1701q), as amended, Section 231 of Public Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of Public Law 90-448 (12 U.S.C. Sec. 1715z), or Section 811 of Public Law 101-625 (42 U.S.C. Sec. 8013), and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations meeting all of the requirements of this section shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

The amendment of this paragraph made by Chapter 1102 of the Statutes of 1984 does not constitute a change in, but is declaratory of, existing law. However, no refund of property taxes shall be required as a result of this amendment for any fiscal year prior to the fiscal year in which the amendment takes effect.

Property used exclusively for housing and related facilities for elderly or handicapped families at which supplemental care or services designed to meet the special needs of elderly or handicapped residents are not provided, or that is not financed by the federal government pursuant to Section 202 of Public Law 86-372 (12 U.S.C. Sec. 1701q), as amended, Section 231 of Public Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of Public Law 90-448 (12 U.S.C. Sec. 1715z), or Section 811 of Public Law 101-625 (42 U.S.C. Sec. 8013), shall not be entitled to exemption pursuant to this subdivision unless the property is used for housing and related facilities for low- and moderate-income elderly or handicapped families. Property that would otherwise be exempt pursuant to this subdivision, except that it includes some housing and related facilities for other than low- or moderate-income elderly or handicapped families, shall be entitled to a partial exemption. The partial exemption shall be equal to that percentage of the value of the property that is equal to the percentage that the number of low- and moderate-income elderly and handicapped families occupying the property represents of the total number of families occupying the property.

As used in this subdivision, "low and moderate income" has the same meaning as the term "persons and families of low or moderate income" as defined by Section 50093 of the Health and Safety Code.

(g) (1) Property used exclusively for rental housing and related facilities and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations, including limited partnerships in which the managing general partner is an eligible nonprofit corporation or eligible limited liability company, meeting all of the requirements of this section, or by veterans' organizations, as described in Section 215.1, meeting all the requirements of paragraphs (1) to (7), inclusive, of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section and shall be entitled to a partial exemption equal to that percentage of the value of the property that the portion of the property serving lower income households represents of the total property in any year in which any of the following criteria applies:

(A) The acquisition, rehabilitation, development, or operation of the property, or any combination of these factors, is financed with tax-exempt mortgage revenue bonds or general obligation bonds, or is financed by local, state, or federal loans or grants and the rents of the occupants who are lower income households do not exceed those prescribed by deed restrictions or regulatory agreements pursuant to the terms of the financing or financial assistance.

(B) The owner of the property is eligible for and receives low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code of 1986, as added by Public Law 99-514.

(C) In the case of a claim, other than a claim with respect to property owned by a limited partnership in which the managing general partner is an eligible nonprofit corporation, that is filed for the 2000-01 fiscal year or any fiscal year thereafter, 90 percent or more of the occupants of the property are lower income households whose rent does not exceed the rent prescribed by Section 50053 of the Health and Safety Code. The total exemption amount allowed under this subdivision to a taxpayer, with respect to a single property or multiple properties for any fiscal year on the sole basis of the application of this subparagraph, may not exceed twenty thousand dollars ($20,000) of tax.

(D) (i) The property was previously purchased and owned by the Department of Transportation pursuant to a consent decree requiring housing mitigation measures relating to the construction of a freeway and is now solely owned by an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.

(ii) This subparagraph shall not apply to property owned by a limited partnership in which the managing partner is an eligible nonprofit corporation.

(2) In order to be eligible for the exemption provided by this subdivision, the owner of the property shall do both of the following:

(A) (i) For any claim filed for the 2000-01 fiscal year or any fiscal year thereafter, certify and ensure, subject to the limitation in clause (ii), that there is an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document that restricts the project's usage and that provides that the units designated for use by lower income households are continuously available to or occupied by lower income households at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or, to the extent that the terms of federal, state, or local financing or financial assistance conflicts with Section 50053, rents that do not exceed those prescribed by the terms of the financing or financial assistance.

(ii) In the case of a limited partnership in which the managing general partner is an eligible nonprofit corporation, the restriction and provision specified in clause (i) shall be contained in an enforceable and verifiable agreement with a public agency, or in a recorded deed restriction to which the limited partnership certifies.

(B) Certify that the funds that would have been necessary to pay property taxes are used to maintain the affordability of, or reduce rents otherwise necessary for, the units occupied by lower income households.

(3) As used in this subdivision, "lower income households" has the same meaning as the term "lower income households" as defined by Section 50079.5 of the Health and Safety Code.

(h) Property used exclusively for an emergency or temporary shelter and related facilities for homeless persons and families and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations meeting all of the requirements of this section shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section. Property that otherwise would be exempt pursuant to this subdivision, except that it includes housing and related facilities for other than an emergency or temporary shelter, shall be entitled to a partial exemption.

As used in this subdivision, "emergency or temporary shelter" means a facility that would be eligible for funding pursuant to Chapter 11 (commencing with Section 50800) of Part 2 of Division 31 of the Health and Safety Code.

(i) Property used exclusively for housing and related facilities for employees of religious, charitable, scientific, or hospital organizations that meet all the requirements of subdivision (a) and owned and operated by funds, foundations, limited liability companies, or corporations that meet all the requirements of subdivision (a) shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section to the extent the residential use of the property is institutionally necessary for the operation of the organization.

(j) For purposes of this section, charitable purposes include educational purposes. For purposes of this subdivision, "educational purposes" means those educational purposes and activities for the benefit of the community as a whole or an unascertainable and indefinite portion thereof, and do not include those educational purposes and activities that are primarily for the benefit of an organization's shareholders. Educational activities include the study of relevant information, the dissemination of that information to interested members of the general public, and the participation of interested members of the general public.

(k) In the case of property used exclusively for the exempt purposes specified in this section, owned and operated by limited liability companies that are organized and operated for those purposes, the State Board of Equalization shall adopt regulations to specify the ownership, organizational, and operational requirements for those companies to qualify for the exemption provided by this section.

(l) The amendments made by Chapter 354 of the Statutes of 2004 shall apply with respect to lien dates occurring on and after January 1, 2005.

History.—Added by Stats. 1945, p. 706, in effect September 15, 1945. Stats. 1949, p. 1150, in effect October 1, 1949, added (7). Stats. 1951, p. 502, in effect December 27, 1952, after approval by the voters upon a referendum petition, deleted "or to extend an exemption to property held by or used as an educational institution of less than collegiate grade" at end of third sentence of last paragraph and added last sentence. Stats. 1953, p. 1994, in effect May 18, 1953, specifically declared the express intention of the Legislature to be that the amendment be effective as of January 1, 1953, and as to all taxes levied or to be levied on or after said date, added portion of (1) following first semicolon; substituted present provisions of (3) for former provisions reading "The property is not used or operated by the owner or by any other person for profit regardless of the purposes to which the profit is devoted." Stats. 1955, p. 2034, in effect September 7, 1965, added provision in parentheses in (7). Stats. 1965, p. 2471, in effect September 17, 1965, added the third paragraph. Stats. 1966, p. 605 (First Extra Session), in effect October 6, 1966, added the fourth paragraph. Stats. 1968, p. 1327, in effect November 13, 1968, added the language following "exempt activity" in (3) and the fifth paragraph. Stats. 1969, p. 3168, in effect November 10, 1969, added "or Section 236 of Public Law 90-448 (12 U.S.C. 1715z)" to the fifth paragraph relating to housing for the elderly and handicapped. Stats. 1974, Ch. 311, p. 594, in effect January 1, 1975, substituted "subdivision (b) of Section 4 and Section 5" for "Section 1c" in the last sentence of the second paragraph, and in the first sentences of the third, fourth and fifth paragraphs; and added the sixth paragraph. Stats. 1978, Ch. 1112, in effect January 1, 1979, deleted the sixth paragraph of the section which provided "property used exclusively for sheltering more than 20 orphan or half-orphan children receiving state aid meeting all the requirements of this section shall be deemed to be within the exemption provided for in this subdivision (b) of Section 4 and Section 5 of Article XIII of the Constitution and this section." Stats. 1979, Ch. 1188, in effect September 30, 1979, added "and the existence of the exemption provision in paragraph (2) of subdivision (a) of Section 202 shall not preclude the exemption under this section for museum or library property" after "law" in the second sentence of the second paragraph. Stats. 1984, Ch. 1102, in effect January 1, 1985, added "low- and moderate-income" after "for" and ", including but not limited to," after "financed by" in the first sentence, and added the second and third sentences to the fifth paragraph; and added the sixth and seventh paragraphs. Stats. 1985, Ch. 542, effective January 1, 1986, lettered the former first paragraph as (a), substituted a period for a semicolon after "indebtedness" in subsection (1), after "individual" in subsection (2), after "purpose" in subsection (3), after "profession" in subsection (4), after "purpose" in subsection (5), and after "purposes" in subsection (6) thereof, and substituted "Except as provided in subdivision (e), this" for "This" before "section" in the third sentence of the second paragraph thereof; lettered the former fourth sentence of the former second paragraph as (b), and substituted "subdivision (a)" for "this section" after "requirements of" therein; lettered the former third paragraph as (c), and substituted "subdivision (a)" for "this section" therein; lettered the former fourth paragraph as (d), and substituted "subdivision (a)" for "this section" therein; added subdivision (e); lettered the former fifth paragraph as (f), deleted "low- and moderate-income" after "related facilities for", added "Sec." before "1701q", added "Section 231 of Public Law 73-479 (12 U.S.C. Sec. 1715v)," after "as amended," deleted "z" after "1715", and added "Sec." before "1715" therein; added the first sentence to the former sixth paragraph, now the second paragraph of subdivision (f), and substituted "this subdivision" for "the preceding paragraph" after "pursuant to" in the second sentence thereof; and substituted "subdivision" for "section" after "this" in the former seventh paragraph, now the third paragraph of subdivision (f). Stats. 1986, Ch. 29, effective March 21, 1986, added the second sentence of the first paragraph to subdivision (e) and added subsections (e)(1) and (e)(2). Stats. 1987, Ch. 1469, in effect January 1, 1988, added commas in subdivisions (b), (c) and (f) after "foundations", added commas in subdivisions (b) and (c) after "hospital", added comma in subdivision (d) after "scientific", added a hyphen after "low" in first sentence of second paragraph of subdivision (f), and added subdivision (g). Stats. 1988, Ch. 77, in effect April 14, 1988, added subdivision (h). Stats. 1988, Ch. 1591, in effect January 1, 1989, added subparagraphs (A), (B), and (C) to subdivision (a)(3); added subdivision (i). Stats. 1989, Ch. 1292, in effect January 1, 1990, replaced semi-colon with a period and deleted "provided, that" in the first sentence, added "However," before "in the case", and substituted "the" for "such" before "organization", "has not" for "shall not have" after "over operating expenses", and "those" for "such" after "10 percent of" in the second sentence, of subdivision (a)(1); substituted "that" for "such" in subdivision (a)(5); added "California" before "Constitution" and deleted "of the State of California" after "Constitution" throughout the section; and added subdivision (j). Stats. 1990, Ch. 161, in effect January 1, 1991, added subparagraph (D) to subdivision (a)(3); deleted "or" after "(B)" and added ", or (D)" after "(C)" in the second paragraph of subdivision (a)(3); added a comma after "1715v)" in the first sentence of the first paragraph of subdivision (f); deleted "the" after "Section 236 of" in the second paragraph of subdivision (f); deleted a hyphen between "lower" and "income" in the first paragraph and in subparagraphs (1), (2) and (3) of subdivision (g); and inserted a hyphen between "tax" and "exempt" in subparagraph (2) of subdivision (g). Stats. 1992, Ch. 1180, in effect January 1, 1993, added "or the Franchise Tax Board" after "Service" and added "or Section 23701d . . . code" after "Revenue Code" in the second sentence of subparagraph (D) of subdivision (a)(3); substituted "organizations" for "organization" after "charitable" in the first paragraph of subdivision (a)(7); added "(1)" after "(g)" and added ", or by veterans' . . . subdivision (a)," after "this section" in the newly created subdivision (g)(1); relettered former paragraphs (1), (2), and (3) of subdivision (g) as subparagraphs (A), (B), and (C), respectively, of newly created subdivision (g)(1); added "(2)" before "In order", creating a new paragraph from the former second paragraph of subdivision (g); substituted "that" for "which" after "document" and after "usage and" in subparagraph (A) of the newly created subdivision (g)(2); and added "(3)" before "As used", creating a new paragraph from the former third paragraph of subdivision (g). Stats. 1995, Ch. 497, in effect January 1, 1996, added ", including ad valorem . . . on the proposition," after "from taxation" in the first paragraph, substituted "immediately" for "immediate" after "during the" in paragraph (1), and substituted ", 23707f, or 23701w" for "or 23701f" after "Section 23701d" in paragraph (3)(D) of subdivision (a), and substituted "1715z" for "1715" after "(12 U.S.C. Sec." in the first sentence of the second paragraph of subdivision (f). Stats. 1996, Ch. 124, in effect January 1, 1997, substituted "if," for ", if" after "operated for profit", deleted ", the excess of" after "preceding fiscal year", and substituted ",did not exceed operating expenses by an amount" for "over operating expenses has not exceeded by a sum" after "grants-in-aid" in the second sentence and substituted "expenses include" for "expenses shall include" after "as used herein" in the third sentence of paragraph (1) of subdivision (a); substituted "Internal Revenue Code" for "Internal Revenue Code of 1986" three times in clauses (i) and (ii) of subparagraph (A) and subparagraph (D); substituted "also shall" for "shall also" in subparagraph (C), and deleted "of this code" after "23701w" in subparagraph (D) of paragraph (3), added a comma after "charges or compensations" in paragraph (4) of subdivision (a); added a comma after "educational television station" in subdivision (d); substituted "by Chapter 1102 of the Statutes of 1984" for "at the 1983–84 Regular Session of the Legislature" in the second sentence of the first paragraph, and substituted "the property represents" for "the property is" in the third sentence of the second paragraph of subdivision (f); substituted "represents" for "is" after "lower income households" in the first sentence of paragraph (1) of subdivision (g);substituted "rents that do" for "rents do" after "Section 50053," in subparagraph (A) of paragraph (2) of subdivision (g); substituted "Property that otherwise would" for "Property which would otherwise" in the second sentence of the first paragraph of subdivision (h); substituted " "educational purposes" " for "educational purposes", substituted "activities that are primarily" for "activities primarily" in the first sentence, and deleted "shall" after "Educational activities" in the second sentence of subdivision (j); and substituted "that" for "which" throughout text. Stats. 1998, Ch. 695 (SB 2235), in effect January 1, 1999, deleted "or" after "Sec. 1715v)" and added "or Section 811 . . . Sec 8013)," after "Sec. 1715z)," twice, in the first sentence of the first paragraph and the first sentence of the second paragraph of subdivision (f). Stats. 1999, Ch. 927 (AB 1559), in effect October 10, 1999, operative January 1, 2000, added a comma after "fiscal year" in the first sentence of paragraph (1), deleted a comma after "Revenue Code" in the second sentence of subparagraph (D) of paragraph (3), added a comma after "foundation" in the first sentence of paragraph (6), added a comma after "investigation, research" in the first sentence of the first paragraph and added a comma after "law" in the second sentence of the second paragraph of paragraph (7) of subdivision (a); substituted "either of the following criteria applies" for "any of the following criteria are applicable" after "year in which" in the first sentence, deleted former subparagraph (A), which provided that a property would qualify on the basis that twenty percent or more of the occupants of the property are lower income households whose rent does not exceed that prescribed by Section 50053 of the Health and Safety Code, and relettered former subparagraph (B) and (C) as subparagraph (A) and (B), respectively, in paragraph (1), and added "an enforceable and verifiable agreement with a public agency or," after "there is", substituted "a recorded" for "a" before "deed restriction," and deleted "agreement, or other legal document" after "deed restriction," in the first sentence of subparagraph (A) of paragraph (2) of subdivision (g). Stats. 2000, Ch. 601 (AB 659), in effect September 24, 2000, added subparagraph (C) to paragraph (1); designated former subparagraph (A) of paragraph (2) as clause (i), substituted "For any claim filed for the 2000-01 fiscal year or any fiscal year thereafter, certify and ensure, subject to the limitation of clause (ii)," for "Certify and ensure" before "that there", and added "or other legal document," after "deed restriction," in the first sentence therein; and added clause (ii) to subparagraph (A) of paragraph (2) of subdivision (g). Stats. 2001, Ch. 159 (SB 662) in effect January 1, 2002, added a comma after "year" in the first sentence of paragraph (1), substituted "of" for "or" after "owner" and deleted a comma after "Code" in the second sentence of subparagraph (D) of paragraph (3), added a comma after "foundation" in paragraph (6) of subdivision (a); deleted "or" after "agency" and deleted a comma after "document" in the first sentence of clause (i) of subparagraph (A) of paragraph (2) of subdivision (g). Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, substituted "a valid organizational clearance certificate issued pursuant to Section 254.6" for "duplicate copies of valid unrevoked letters or rulings from the Internal Revenue Service that state that the owner and the other organization qualify as exempt organizations under Section 501(c)(3) of the Internal Revenue Code. The owner of the property and any other organization using the property as provided in subparagraph (A) also shall file duplicate copies of their most recently filed federal income tax returns." after "with the assessor" in subparagraph (C) of paragraph (3); deleted ", of subdivision (a)" after "(1) and (5), inclusive," and substituted "a valid organizational clearance certificate issued pursuant to Section 254.6" for "duplicate copies of valid, unrevoked letters or rulings from the Internal Revenue Service or the Franchise Tax Board stating that the other organization, or the national organization of which it is a local chapter or affiliate, qualifies as an exempt organization under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code or Section 23701d, 23701f, or 23701w, together with duplicate copies of that organization's most recently filed federal income tax return, if the organization is required by federal law to file a return." after "with the assessor" in subparagraph (D) of paragraph (3); and designated the last sentence of paragraph (3) as subparagraph (E) therein. Stats. 2004, Ch. 354 (AB 3073), in effect August 30, 2004, added "limited liability companies," after "foundations," throughout text; added "or eligible limited liability company," after "managing general partner" in the first sentence of paragraph (1) of subdivision (g); substituted "do" for "shall" after "thereof, and" in the first sentence of subdivision (j); and added subdivision (k) and (l). Stats. 2005, Ch. 22 (SB 1108), in effect January 1, 2006, deleted "the" after "is declaratory of," in the first sentence of the second paragraph of subdivision (f), substituted "Section 4 and Section 5" for "Sections 4 and 5" after "subdivision (b) of" in the first sentence of subdivision (i), and substituted "Chapter 354 of the Statutes of 2004" for "the act adding this subdivision" after "amendments made by" in the first sentence of subdivision (l). Stats. 2006, Ch. 224 (SB 1607), in effect January 1, 2007, deleted ". The owner of" and added ", of this subdivision. The owner or" after "(1) to (5), inclusive" in the first sentence of subparagraph (D), substituted "copy of a valid, unrevoked letter or ruling . . . Section 23701d, 23701f, or 23701w." for "valid organizational clearance certificate issued pursuant to Section 254.6." after "the assessor a" in the second sentence of subparagraph (D); added "limited liability companies," after "charitable funds, foundation," in the first sentence of subdivision (f); and added "is an eligible nonprofit corporation" after "managing general partner" and deleted "is an eligible nonprofit corporation," after "eligible limited liability company," in the first sentence of paragraph (1) of subdivision (g). Stats. 2008, Ch. 524 (SB 1284), in effect September 28, 2008, substituted "any" for "either" after "year in which" in the first sentence of paragraph (1) of subdivision (g) and added subparagraph (D) thereto.

Note.—Section 2 of Stats. 1986, Ch. 29, provided that the amendment of subdivision (e) in Section 214 of the Revenue and Taxation Code made by Section 1 of this act shall be operative for the 1986–87 fiscal year and fiscal years thereafter.

Note.—Section 3 of Stats. 1985, Ch. 542, provided that the addition of subdivision (e) to Section 214 of the Revenue and Taxation Code made by Section 2 of this act shall be operative for the 1986–87 fiscal year and fiscal years thereafter.

Note.—Section 3.5 of Stats. 1985, Ch. 542, provided that the amendment of subdivision (f) of Section 214 of the Revenue and Taxation Code by Section 2 of this act is operative for the 1985–86 fiscal year and fiscal years thereafter.

Note.—Section 9 of Stats. 1979, Ch. 1188, provided that under existing provisions of Section 214 of the Revenue and Taxation Code, the Welfare exemption from property taxes provided by Section 214 is specifically "in addition to any other exemption now provided by law." It has been the legislative intent that the exemption provided by Section 214 be in addition to and not in limitation of any other exemptions provided by other provisions of the Revenue and Taxation Code or the California Constitution. The purpose of the amendments to Section 214 is to reaffirm such legislative policy with respect to museum and library property. Sec. 11 thereof provided that the changes made by Section 1.5 of this act are declarative of existing law, and that it is the intent of the Legislature that Section 1.5 be applied to determine the eligibility of exemptions under Section 214 of the Revenue and Taxation Code for any property otherwise taxable on March 1, 1979. Section 13 thereof provided no payment by state to local governments because of this act.

Note.—Sec. 2 of Stats. 1984, Ch. 1102, in effect January 1, 1985, provided no payment by state to local governments because of this act.

Note.—Section 3 of Stats. 1987, Ch. 1228, provided that this act makes a classification or exemption of property for purposes of ad valorem taxation within the meaning of Section 2229 of the Revenue and Taxation Code. Sec. 4 thereof provided that the amendment made by this act shall be operative for the 1988–89 fiscal year and fiscal years thereafter.

Note.—Section 2 of Stats. 1987, Ch. 1469, provided that this act makes a classification or exemption of property for purposes of ad valorem taxation within the meaning of Section 2229 of the Revenue and Taxation Code. Sec. 3 thereof provided that the amendments made by this act shall be operative for the 1988–89 fiscal year and each fiscal year thereafter.

Note.—Section 2 of Stats. 1988, Ch. 1591 provided that the amendments to the section made by this act do not constitute a change in, but are declaratory of existing law. Sec. 3 thereof provided that the Legislature finds and declares that these amendments are codification of Board practice. Therefore, no escape assessments shall be levied and no refunds made as a result of the enactment of this act. Sec. 4 thereof provided that notwithstanding Section 2229, the requirements of that section relating to any exemption of property for more than 5 years or for more than 75 percent of the value thereof shall not apply to any exemptions made by this act. In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Note.—Section 2 of Stats. 1989, Ch. 1292, stated that the amendment of this Section made at the 1989–90 Regular Session of the Legislature does not constitute a change in, but is declaratory of, existing law.

Note.—Section 30 of Stats. 1993, Ch. 1187, provided that the amendments made by Chapter 1180 of the Statutes of 1992 to subdivision (g) of Section 214, relating to veterans' organizations, shall be operative with respect to taxes levied for the 1989–90 fiscal year and each fiscal year thereafter.

Note.—Section 5 of Stats. 1999, Ch. 927 (AB 1559) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. Section 6 thereof provided that the provisions of this act shall apply on and after the January 1, 2000, lien date.

Note.—Section 4 of Stats. 2000, Ch. 601 (AB 659) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Note.—Section 1 of Stats. 2008, Ch. 524 (SB 1284), provided that the Legislature finds and declares all of the following:

(a) That maintaining the affordability of lower income housing fulfills both of the following:

(1) The legal commitment entered into by the Department of Transportation in a consent decree to replace affordable housing stock lost as a result of the construction of the Century Freeway.

(2) Addresses California's serious shortage of decent, safe, and sanitary housing, which persons and families of low or moderate income, including the elderly and handicapped, can afford.

(b) That expanding the criteria for the partial welfare exemption, as provided by this act, extends the application of the partial welfare exemption in a consistent manner to all eligible taxpayers in order to ensure that all eligible and similarly situated taxpayers are treated in a fair and equitable manner.

(c) Therefore, the Legislature finds and declares that this act serves a public purpose of the state.

Section 4 thereof provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenue lost by it pursuant to this act.

Boys' camp.—Property was used in the actual operation of a charitable boys' camp where it was not a part of the main campground, but was used for roads, trails, and overnight campsites. The fact the club had excess timber logged from a portion of the land was consistent with prudent management of the land and did not destroy the exemption. San Francisco Boy's Club, Inc. v. Mendocino County, 254 Cal.App.2d 548.

Hospital property.—The welfare exemption extends to the property of a hospital devoted to the housing of essential hospital personnel, to the conduct of a nurses' training school operated in connection with the hospital, and to a tennis court maintained as a recreational facility for hospital employees. Hospital buildings under construction but not yet in use and a "thrift shop" operated for the sale of donated clothing, the proceeds therefrom being devoted to the maintenance of a free children's clinic, are not exempt. Cedars of Lebanon Hospital v. Los Angeles County, 35 Cal.2d 729.

The 1953 amendment, providing that a hospital shall not be deemed operated for profit if during the preceding fiscal year the excess of income over expenses did not exceed 10 percent of the expenses, contravenes the prohibition against gifts of public money of Section 31 of Article IV of the State Constitution insofar as it is expressly made retroactive as to all taxes levied on or after January 1, 1953, since the right to tax moneys for the year 1953–54, due November 1, 1953, vested in the state on the lien date, the first Monday in March, whereas the amendment was not enacted until May 18, 1953, and the amendment does not compel a hospital to use the 10 percent profit exclusively for such hospital purposes as would also be proper public purposes. Doctors General Hospital v. Santa Clara County, 150 Cal.App.2d 53.

A hospital with net operating revenue in excess of ten percent of operating expenses is not automatically precluded from invoking the welfare exemption. Legislative history of Section 214(a)(1) indicates an intent not to deny the exemption to a non-profit hospital using such excess revenue for debt retirement, facility expansion or operating cost contingencies but rather, to merely require that the hospital is, in fact, not operated for profit and meets other statutory requirements for exemption. Rideout Hospital Foundation, Inc. v. Yuba County, 8 Cal.App.4th 214.

Property of religious institution.—The entire retreat house of a qualified nonprofit religious institution, including that part used for living quarters for priests and laybrothers whose presence on the retreat property is essential in carrying out the religious and charitable activities of the retreat, is exempt from taxation. Serra Retreat v. Los Angeles County, 35 Cal.2d 755.

The test for determining whether property is used exclusively for religious or charitable purposes is not whether such property is essential, indispensable and necessary for the accomplishment of such purposes, but whether the use is incidental to and reasonably necessary for the accomplishment of such purposes; thus, the exemption applies to temporary, low-cost housing facilities for missionaries on furlough and for other religious workers who work in establishing Christian purposes throughout the world. House of Rest v. Los Angeles County, 151 Cal.App.2d 523.

Exemption applies to property principally used for religious instruction and the sale of religious books, the profit of which is dedicated toward religious purposes. St. Germain Foundation v. County of Siskiyou, 212 Cal.App.2d 911.

The actual use required by subparagraph (3) is not limited to "actual physical use." Exempt nonphysical uses of a religious retreat may include use of nearby areas surrounding trails for meditation and of more remote hilltops for a buffer. Christward Ministry v. San Diego County, 271 Cal.App.2d 805.

A swimming pool, tennis courts, locker rooms and sauna owned by a church did not qualify as property used for religious purposes where the primary user of these facilities was a boosters organization, not the church. At the very least, the term "exclusive use" must mean that the property is used primarily for exempt purposes. Peninsula Covenant Church v. San Mateo County, 94 Cal.App.3d 382.

A tax exempt lessor of a church will not be disqualified from receiving the welfare exemption by leasing the church to another exempt organization where such leasing arrangement is not intentionally profit-making or commercial in nature. Christ The Good Shepherd Lutheran Church of San Jose v. Dwight L. Mathiesen, et al., 81 Cal.App.3d 355.

Y.M.C.A. property.—Portions of Y.M.C.A. buildings devoted to dormitory accommodations are within the welfare exemption even though a moderate charge is made for such accommodations, where there is no real profit motive, the dormitory portions operate at a loss and are incidental to and reasonably necessary for the accomplishment of the organization's religious and charitable purposes. Portions of Y.M.C.A. buildings devoted to a restaurant, a barbershop, a valet shop and a "gym store," all of which are open to the public as well as to Y.M.C.A. members, a meeting room where meals are served to outside groups and office rooms rented to the Selective Service Board are not, however, entitled to exempt status. Young Men's Christian Ass'n v. Los Angeles County, 35 Cal.2d 760. Y.M.C.A.'s health club facility served valid charitable purposes, benefiting the community as a whole, so as to qualify it for a charitable property tax exemption. All its activities had some potentially valid charitable purpose, and it was unrealistic to analyze the degree of community benefit for each category of activity offered by the organization, since all activities were conducted in the same building, directed by the same staff, and often shared the same sources of financial support and the same overhead costs. And it was immaterial that the facility competed with private health clubs, since a charitable enterprise does not lose its exemption merely because it engages in competition with businesses that are subject to taxation. Clubs of California for Fair Compet. v. Kroger, 7 Cal.App.4th 709.

Charges and entrance requirements.—A nonprofit corporation operating a home for aged people on a "life care contract" basis is entitled to the welfare exemption even though it requires that each applicant for admission pay an entry charge and meet the approval of the board of directors after a three-month probationary period, where the payments made by the elderly residents are within the reach of persons of limited means and are not commensurate with the benefits they receive, there is no element of private gain, and all the income of the corporation, approximately 65 percent being received from residents and the balance from gifts and other sources, is devoted exclusively to affording a reasonable standard of care to the aged persons. The portion of the corporation's property used to house personnel whose presence on its property constitutes an institutional necessity is also entitled to the exemption. Fredericka Home v. San Diego County, 35 Cal.2d 789.

A home for the aged which caters to wealthy persons and furnishes them the services and care needed by the old and infirm, rich or poor, does not cease to be a charitable institution so long as its charges do not yield more than actual cost of operation. Fifield Manor v. Los Angeles County, 188 Cal.App.2d 1.

Profit, prior law.—Prior to the 1953 amendment, a nonprofit hospital purposely operating to produce a surplus of income over expenses, and making a surplus of slightly more than 8 percent of gross income to retire bonded indebtedness and expand facilities was not exempt. Sutter Hospital v. City of Sacramento, 39 Cal.2d 33.

A hospital's main hospital building, living quarters for resident personnel, and a building used for a nursing school were exempt in 1951, notwithstanding the corporation made a surplus of $130,400 (4.4 percent of gross receipts), principally from certain properties for which it did not claim exemption, consisting of a parking lot for use by doctors who patronized the hospital and a building housing a pharmacy, offices rented to various doctors and dentists, and a coffee shop, where evidence supported the trial court's findings that the properties for which exemption was claimed and the hospital as owner were organized and operated for hospital and charitable purposes and were not organized and operated for profit. St. Francis Memorial Hospital v. San Francisco, 137 Cal.App.2d 321.

Presentation of concerts by paid professional artists does not result in a more advantageous pursuit of their profession and deny the exemption to an otherwise qualified nonprofit organization. Greek Theater Assn. v. Los Angeles County, 76 Cal.App.3d 768.

Island, open space property was used exclusively for charitable purposes even though fees were charged to the public in connection with certain activities conducted on the property and even though the former owner of the property and an independent contractor derived profits from motor tours and a hunting program. In addition to recreational uses, the Conservancy's preservation of the unique, partly wild, island environment containing exceptional geological features and rare plant and animal species provided incalculable benefit to all members of society. Santa Catalina Island Conservancy v. Los Angeles County, 126 Cal.App.3d 221.

More advantageous pursuit.—A facility conducting research under an agreement granting exclusive license options to develop, market, and sell research products in exchange for research funding provided by the optionee was not property used for the more advantageous pursuit of the optionee's business because the agreement was an arms'-length transaction that did not result in consideration above fair market value. Scripps Clinic & Research Foundation v. San Diego County, 53 Cal.App.4th 402.

Irrevocable dedication to exempt purposes.—This requirement is not violated by the possibility of diversion, through sale or otherwise, of any particular piece or portion of the property to nonexempt uses provided the proceeds thereof are irrevocably dedicated to exempt purposes. Property is not so irrevocably dedicated if the articles of incorporation of the owner permit present use for and permanent diversion of the property to nonexempt purposes even though the owner's use of the property, both past and present, has been for exempt purposes. Pasadena Hospital Ass'n, Ltd. v. Los Angeles County, 35 Cal.2d 779.

The requirement is satisfied where the property is impressed with a charitable trust for exempt purposes by virtue of the express declaration of such purposes in the articles of incorporation of the owner, even though in the event of dissolution the property will pass to a successor which is organized for nonexempt, as well as exempt, purposes. Pacific Home v. Los Angeles County, 41 Cal.2d 844 and 41 Cal.2d 855.

The requirement is also satisfied absent an express declaration where the articles of incorporation construed as a whole show the corporation is organized for charitable purposes. The assets are then impressed with a trust and can be used by a successor organized for charitable as well as nonexempt purposes, for charitable purposes only. Stockton Civic Theatre v. Board of Supervisors, 66 Cal.2d 13.

Note.—After 1966, see Section 214.01.

Educational purposes.—The property of a corporation whose articles permit use of the property for educational purposes is not irrevocably dedicated to exempt purposes and the welfare exemption does not extend to such property. (Based on the section as it existed prior to the 1951 amendment enlarging its scope as to educational purposes.) Moody Institute of Science v. Los Angeles County, 105 Cal.App.2d 107; Goodwill Industries v. Los Angeles County, 117 Cal.App.2d 19.

A nonprofit corporation whose sole purpose is to conduct a girls' school of less than collegiate grade and whose articles prohibit individual profit and provide for distribution to a religious benevolent or charitable corporation or fund in case of dissolution is organized for charitable purposes. Sarah Dix Hamlin School v. San Francisco City and County, 221 Cal.App.2d 336.

As is true of vocational schools generally the property of an educational institution which trains personnel for the funeral-service industry does not qualify for the welfare exemption as property used exclusively for charitable purposes in that its activities do not benefit the community as a whole or an unascertainable and indefinite portion thereof. California College of Mortuary Science v. Los Angeles County, 23 Cal.App.3d 702.

A construction industry vocational training school operated under a trust created by a labor union and construction industry employers pursuant to a collective bargaining agreement does not qualify for the exemption where the trust was primarily intended to benefit and did primarily benefit the union and the employers rather than the community in general. Alcoser v. San Diego County, 111 Cal.App.3d 907.

Special assessments.—The real property of an institution qualifying for the welfare exemption from taxation under this section is not exempt from special assessments, such as those imposed under authority of the Los Angeles County Flood Control Act. Cedars of Lebanon Hospital v. Los Angeles County, 35 Cal.2d 729 (hospital property); Young Men's Christian Ass'n v. Los Angeles County, 35 Cal.2d 760 (Young Men's Christian Association property).

School property.—The 1951 amendment of this section, approved by the voters on referendum at the general election of 1952, providing for the exemption of property "used exclusively for school purposes of less than collegiate grade and owned and operated by religious, hospital or charitable funds, foundations or corporations," is valid under the State and Federal Constitutions. Lundberg v. Alameda County, 46 Cal.2d 644; appeal dismissed in a companion case, Heisey v. Alameda County, 352 U.S. 921.

Museum property.—A qualifying nonprofit organization may qualify for the welfare exemption, the free museum exemption, or both, the use of property for a free museum being a charitable activity, and facilities in the course of construction on the lien date intended as a free museum are eligible for the welfare exemption. J. Paul Getty Museum v. Los Angeles County, 148 Cal.App.3d 600.

Interest payable from net earnings.—A part of the net earnings of a hospital does not inure to the benefit of private shareholders or individuals within the purview of subdivision (2) of this section by reason of the payment of interest upon certain promissory notes issued by the hospital which are in the form of an obligation to pay only out of "net earnings" rather than the usual absolute, unqualified obligation. St. Francis Memorial Hospital v. San Francisco, 137 Cal.App.2d 321.

Course of construction.—A building is in the course of construction within the meaning of former Article XIII, Section 1c, when at noon on the first Monday in March some trenches for the foundation of the building had been dug. National Charity League, Inc. v. Los Angeles County, 164 Cal.App.2d 241.

Low-rental housing for the elderly and handicapped.—The 1968 and 1969 amendments did not exempt all low-rental housing from taxation; rather, they included only that housing financed pursuant to the specified federal programs, whichprovide low-interest, long-term federal loans whereby the savings may be passed on to the tenants in the form of lower rents. Martin Luther Homes v. Los Angeles County, 12 Cal.App.3d 205.

Municipal property.—City property operated by the Parks and Recreation Department exclusively for the purpose of furnishing camping facilities to persons and organizations at less than cost was not eligible for the welfare exemption since the city was not operated exclusively for charitable purposes and the Parks and Recreation Department was neither a separately organized nor an autonomous agency of the city capable of itself qualifying for the exemption. City of Los Angeles v. Los Angeles County, 19 Cal.App.3d 968.

Possessory interest.—Property "owned", as used in the section, includes possessory interests, and a qualifying charitable organization's leasehold interest in public property was exempt under the section where the organization used the leasehold for charitable purposes. Tri-Cities Children's Center, Inc. v. Board of Supervisors, 166 Cal.App.3d 589.

Note.—See Constitutional Provisions, Art. XIII, § 4, subtitle "Educational Purposes."

Back to top


214.01. Welfare exemption; irrevocable dedication. (a) For the purpose of Section 214, property shall be deemed irrevocably dedicated to religious, charitable, scientific, or hospital purposes only if a statement of irrevocable dedication to only these purposes is found in the articles of incorporation of the corporation, or in the case of any other fund or foundation, limited liability company, or corporation chartered by an act of Congress, in the bylaws, articles of association, articles of organization, constitution, or regulations thereof, as determined by the State Board of Equalization.

(b) If, when performing the duties specified by Section 254.6, the board finds that an applicant for the welfare exemption is ineligible for an organizational clearance certificate, because at the time of the filing of the claim required by Section 254.6, the applicant's articles of incorporation, or in the case of any noncorporate fund or foundation, its bylaws, articles of association, articles of organization, constitution or regulations, did not comply with the provisions of this section, the board shall notify the applicant in writing. The applicant shall have until the next succeeding lien date to amend its articles of incorporation, or in the case of any noncorporate fund or foundation, its bylaws, articles of association, articles of organization, constitution or regulations, and to file a certified copy of these amendments that conform to the provisions of this section with the board, and the board shall make a finding that the applicant, if otherwise qualified, is eligible for an organizational clearance certificate and forward that finding to the assessor.

(c) The amendments made by the act adding this subdivision shall apply with respect to lien dates occurring on and after January 1, 2005.

History.—Added by Stats. 1966, p. 656 (First Extra Session), in effect October 6, 1966. Stats. 1967, p. 1311, operative March 1, 1968, added "or corporation chartered by an act of Congress" and "as determined by the State Board of Equalization" to first paragraph and added last paragraph. Stats. 1969, p. 264, in effect May 27, 1969, substituted "until the next succeeding lien date" for "six months from the date of the mailing of such notice" and revised, without substantive change, the second and third sentences, of the second paragraph. Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, added the subdivision letter designations; substituted "Section 254.6" for "Section 254.5" after "duties specified by", substituted "for an organizational clearance certificate" for "therefor" after "exemption is ineligible", substituted "claim" for "affidavit" after "filing of the", and substituted "Section 254.6" for "Section 254.5" after "required by" in the first sentence, and substituted "these" for "such" after "certified copy of", and substituted "an organizational clearance certificate and forward that" for "the welfare exemption and forward such" after "is eligible for" in the second sentence of subdivision (b). Stats. 2004, Ch. 354 (AB 3073), in effect August 30, 2004, added "limited liability company," after "fund or foundation" and added "articles of organization," after "articles of association," in the first sentence of subdivision (a); added "articles of organization," after "articles of association," in the first and second sentences of subdivision (b); and added subdivision (c).

Back to top


214.02. Welfare exemption; property in its natural state. (a) Except as provided in subdivision (b) or (c), property that is used exclusively for the preservation of native plants or animals, biotic communities, geological or geographical formations of scientific or educational interest, or open-space lands used solely for recreation and for the enjoyment of scenic beauty, is open to the general public subject to reasonable restrictions concerning the needs of the land, and is owned and operated by a scientific or charitable fund, foundation, limited liability company, or corporation, the primary interest of which is to preserve those natural areas, and that meets all the requirements of Section 214, shall be deemed to be within the exemption provided for in subdivision (b) of Sections 4 and 5 of Article XIII of the Constitution of the State of California and Section 214.

(b) The exemption provided by this section shall not apply to any property of an organization that owns in the aggregate 30,000 acres or more in one county that were exempt under this section prior to March 1, 1983, or that are proposed to be exempt, unless the nonprofit organization that holds the property is fully independent of the owner of any taxable real property that is adjacent to the property otherwise qualifying for tax exemption under this section. For purposes of this section, the nonprofit organization that holds the property shall be considered fully independent if the exempt property is not used or operated by that organization or by any other person so as to benefit any officer, trustee, director, shareholder, member, employee, contributor or bondholder of the exempt organization or operator, or the owner of any adjacent property, or any other person, through the distribution of profits, payment of excessive charges or compensations, or the more advantageous pursuit of their business or profession.

(c) The exemption provided by this section shall not apply to property that is reserved for future development.

(d)(1) For the purposes of determining whether the property is used for the actual operation of the exempt activity as required by subdivision (a), consideration shall not be given to the use of the property for either of the following:

(A) Activities resulting in direct or in-kind revenues provided that the activities further the conservation objectives of the property as provided in a qualified conservation management plan for the property. These revenues include those revenues derived from grazing leases, hunting and camping permits, rents from persons performing caretaking activities who reside in dwellings on the property, and admission fees collected for purposes of public enjoyment.

(B) Any lease of the property for a purpose that furthers the conservation objectives of the property as provided in a qualified conservation management plan for the property.

(2) The activities and lease described in paragraph (1) may not generate unrelated business income.

(3) For purposes of this subdivision, a "qualified conservation management plan" means a plan that satisfies all of the following:

(A) Identifies both of the following:

(i) That the foremost purpose and use of the property is for the preservation of native plants or animals, biotic communities, geological or geographical formations of scientific or educational interest, or as open-space lands used solely for recreation and for the enjoyment of scenic beauty.

(ii) The overall conservation management goals, including, but not limited to, identification of permitted activities, and actions necessary to achieve the goals.

(B) Describes both of the following:

(i) The natural resources and recreational attributes of the property.

(ii) Potential threats to the conservation values or areas of special concern.

(C) Contains a timeline for planned management activities and for regular inspections of the property, including existing structures and improvements.

(deletione) This section shall be operative from the lien date in 1983 to and including the lien date in 2022, after which date this section shall become inoperative, and as of January 1, 2023, this section is repealed.

(deletionf) The amendments made by deletionSection 4 of Chapter 354 of the Statutes of 2004 shall apply with respect to lien dates occurring on and after January 1, 2005.

(g) The amendments made to this section by the act adding this subdivision shall apply commencing with the lien date for the 2013–14 fiscal year.

History.—Added by Stats. 1971, Ch. 1 (First Extra Session) in effect December 8, 1971, operative on the lien date in 1972. Stats. 1974, Ch. 311, p. 596, in effect January 1, 1975, substituted "of Section 214" for "of this section", and substituted "subdivision (b) of Section 4 and Section 5" for "Section 1c". Stats. 1982, Ch. 1485, in effect January 1, 1983, operative March 1, 1983, added "(a) Except as provided in subdivision (b) or (c)" before "property" at the beginning of the first sentence, and added subdivisions (b) and (c). Stats. 1992, Ch. 786; in effect January 1, 1993, added subdivision (d). Stats. 1993, Ch. 589, in effect January 1, 1994, added "that is" after "property", deleted "or" after "animals," and after "communities,", deleted "and which property" after "beauty," added a comma after "land", substituted "those" for "such" after "preserve", and substituted "that" for "which" after "areas, and" in subdivision (a); substituted "that" for "which" throughout subdivision (b), and substituted "that are" for "which" in the first sentence of subdivision (b); and substituted "that" for "which" after "property" in subdivision (c). Stats. 2001, Ch. 533 (SB 198), in effect October 5, 2001, substituted "2012" for "2002" after "lien date in" and substituted "2013" for "2003" after "January 1," in the first sentence of subdivision (d). Stats. 2004, Ch. 354 (AB 3073), in effect August 30, 2004, added ", limited liability company," after "fund, foundation" in the first sentence of subdivision (a); deleted "constituted in such a way as to be" after "the property is" in the first sentence of subdivision (b); and added subdivision (e). Stats. 2011, Ch. 202 (AB 703), in effect October 8, 2011, substituted "2022" for "2012" after "lien date in" and substituted "2023" for "2013" after "January 1," in the first sentence of subdivision (d). Stats. 2012, Ch. 863 (AB 2207), in effect September 30, 2012, added subdivision (d); relettered former subdivision (d) as (e); relettered former subdivision (e) as (f) and substituted "Section 4 of Chapter 354 of the Statutes of 2004" for "the act adding this subdivision" after "made by" in the first sentence therein; and added subdivision (g).

Note.—Stats. 1971, p. 5133 (First Extra Session), provided that this section shall remain operative to and including the lien date in 1981 and shall have no further force or effect after such date.

Note.—Section 3 of Stats. 1992, Ch. 786, provided that notwithstanding Section 2229 of the Revenue and Taxation Code, the requirements of that section relating to any exemption of property for more than five years or for more than 75 percent of the value thereof shall not apply to any exemptions made by this act. In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Note.—Section 2 of Stats. 2001, Ch. 533 (SB 198) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Note.—Section 2 of Stats. 2011, Ch. 575 (AB 703) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Construction.—This section is a valid exercise of the Legislature's power under Article XIII, Section 4(b) of the Constitution. Santa Catalina Island Conservancy v. Los Angeles County, 126 Cal.App.3d 221.

Back to top


214.05. Welfare exemption; unrelated business taxable income. For purposes of Section 214:

(a) If the property of an organization is granted an exemption pursuant to Section 214, that property is deemed to be used exclusively for the organization's exempt purposes. However, to the extent that income derived from the organization's use of the property is unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, and the regulations implementing that section, and is subject to the tax on unrelated business taxable income which is imposed by Section 511 of the Internal Revenue Code, the property shall be exempt from taxation under Section 214 only to the extent provided in subdivision (b) or (c).

(b) (1) If the use of property which has qualified for the welfare exemption under Section 214 involves activities of the organization, some of which produce income that is exempt from income or franchise taxation and some of which produce income that is taxable as unrelated business taxable income, and those activities are attributable to a reasonably ascertainable portion of the entire property, that portion of the property shall be entitled only to a partial exemption from property taxation equal to that proportion of the total value of the portion of the property which the amount of income of the organization that is exempt from income or franchise taxation and that is attributable to that portion bears to the total amount of income of the organization that is attributable to that portion. The remaining proportion of the total value of that portion of the property shall be subject to taxation pursuant to this division.

(2) If the use of property which has qualified for the welfare exemption under Section 214 involves activities of the organization, some of which are exempt for property tax purposes and produce no income and some of which produce income that is taxable as unrelated business taxable income, or produce both income that is taxable as unrelated business taxable income and income that is exempt from income or franchise taxation and those activities are attributable to a reasonably ascertainable portion of the entire property, that portion of the property shall be entitled only to a partial exemption equal to that proportion of the total value of the portion of the property which the amount of time actually devoted to those exempt nonincome-producing activities of the organization attributable to that portion bears to the total amount of time actually devoted to all of the activities of the organization attributable to that portion. The remaining proportion of the total value of that portion of the property shall be subject to taxation pursuant to this division.

(3) If the activities described in paragraphs (1) and (2) cannot be attributed to a reasonably ascertainable portion of the entire property, the entire property shall be entitled only to a partial exemption. In the case of activities of the organization described in paragraph (1), the partial exemption shall be equal to that proportion of the value of the entire property which the amount of income of the organization that is exempt from income or franchise taxation and that is attributable to the entire property bears to the total amount of income of the organization that is attributable to the entire property. In the case of activities of the organization described in paragraph (2), the partial exemption shall be equal to that proportion of the value of the entire property which the amount of time actually devoted to exempt nonincome-producing activities of the organization attributable to the entire property bears to the total amount of time actually devoted to all of the activities of the organization attributable to the entire property. In either case, the remaining proportion of the total value of the entire property shall be subject to taxation pursuant to this division.

(c) Notwithstanding subdivision (b), if more than 75 percent of the income of an organization is attributable to property which has qualified for the welfare exemption under Section 214, but is not specifically related to the organization's use of particular property, the property shall be entitled only to a partial exemption equal to that proportion of the total value of the property which the amount of the income of the organization attributable to activities in this state and exempt from income or franchise taxation bears to the amount of total income of the organization that is attributable to activities in this state.

(d) Whenever property is claimed exempt under Section 214 and activities of the organization on the property produce unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, the organization, as a part of its claim for exemption, shall file with the assessor each of the following:

(1) The organization's information and tax returns filed with the Internal Revenue Service for its immediately preceding fiscal year.

(2) Information indicating the amount of time devoted to its income-producing and its nonincome-producing activities and, where applicable, a description of that portion of the property in which those activities are conducted.

(3) A statement listing the specific activities which produce the unrelated business taxable income.

(4) Whenever subdivision (c) is applicable, the amount of income of the organization that is attributable to activities in this state and is exempt from income or franchise taxation and the amount of total income of the organization that is attributable to activities in this state.

(5) Any other information as prescribed by the board.

(e) Nothing in this section shall be construed to enlarge the welfare exemption provided in Section 214.

History.—Added by Stats. 1988, Ch. 1606, in effect January 1, 1989.

Note.—Section 4 of Stats. 1988, Ch. 1606, provided that if any provision of this act or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Sec. 5 thereof provided that no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the Legislature finds and declares that there are savings as well as costs in this act which, in the aggregate, do not result in additional net costs. Sec. 6 thereof provided that notwithstanding Section 2229, the requirements of that section shall not apply to the exemption of property for purposes of ad valorem property taxation made by this act. In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. Sec. 7 thereof provided that this act shall apply to property taxes levied for the 1989–90 fiscal year and fiscal years thereafter.

Back to top


214.1. Welfare exemption; facilities under construction. As used in Section 214, "property used exclusively for religious, hospital or charitable purposes" shall include facilities in the course of construction on or after the first Monday of March, 1954, together with the land on which the facilities are located as may be required for their convenient use and occupation, to be used exclusively for religious, hospital or charitable purposes.

History.—Added by Stats. 1953, p. 2325, in effect November 4, 1954, upon adoption of an amendment of Article XIII, Sec. 1c, of the Constitution.

214.2. Welfare exemption; construction includes demolition.(a) As used in Section 214.1, "facilities in the course of construction" shall include the demolition or razing of a building with the intent to replace it with facilities to be used exclusively for religious, hospital or charitable purposes.

(b) As used in Section 214.1, "facilities in the course of construction" shall include definite onsite physical activity connected with construction or rehabilitation of a new or existing building or improvement, that results in changes visible to any person inspecting the site, where the building or improvement is to be used exclusively for religious, hospital, or charitable purposes. Activity as described in the preceding sentence having been commenced and not yet finished, unless abandoned, shall establish that a building or improvement is "under construction" for the purposes of Section 5 of Article XIII of the California Constitution. Construction shall not be considered "abandoned" if delayed due to reasonable causes and circumstances beyond the assessee's control, that occur notwithstanding the exercise of ordinary care and the absence of willful neglect.

History.—Added by Stats. 1959, p. 4652, in effect September 18, 1959. Stats. 1991, Ch. 897, in effect January 1, 1992, added subdivision letter (a) before "As used" and added subdivision (b). Stats. 1992, Ch. 1180, in effect January 1, 1993, added "or improvement, . . . or improvement is" after "building" in the first sentence of subdivision (b); and added "or improvement" after "building" and added "if delayed" after "abandoned" in the second sentence of subdivision (b).

Note.—Section 3 of Stats. 1991, Ch. 897, provided that the Legislature finds and declares that the amendments to this section made by this act do not constitute a change in, but are declaratory of existing law. Section 4 thereof provided that notwithstanding Section 2229 of the Revenue and Taxation Code, the requirements of that section relating to any exemption of property for more than five years or for more than 75 percent of the value thereof, shall not apply to any exemption made by this act. In addition, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

214.3. Welfare exemption; 30 years' use. In the event that any property described in paragraph (6) of subdivision (a) of Section 214 shall have been used solely for charitable or hospital purposes for a minimum period of 30 years, the "welfare exemption" granted by Section 214 shall extend to such property irrespective of any reversionary provisions in the title of the property respecting liquidation, dissolution or abandonment, if the ownership, operation, use and dedication of the property are otherwise within the purview of Section 214.

History.—Added by Stats. 1953, p. 2276, in effect September 9, 1953. Stats. 1966, p. 656 (First Extra Session), in effect October 6, 1966, first operative for the 1967–68 assessment year, substituted "30 years" for "20 years." Stats. 1987, Ch. 498, in effect January 1, 1988, substituted "paragraph (6) of subdivision (a)" for "subdivision (6)" after "described in " in the first sentence.

214.4. Definition; school of less than collegiate grade. For the purposes of Sections 207 and 214 a school of "less than collegiate grade" is (a) any institution of learning attendance at which exempts a student from attendance at a public full-time elementary or secondary day school under Section 48222 of the Education Code or (b) any institution of learning a majority of whose students are persons that have been excused from attendance at a full-time elementary or secondary day school under Section 48221 or 48226 of the Education Code.

History.—Added by Stats. 1963, p. 3991, in effect September 20, 1963. Stats. 1981, Ch. 542, in effect January 1, 1982, added "207 and" before "214", substituted "48222" for "12154", and substituted "48221 or 48226" for "12152 or 12156".

Back to top


214.5. Welfare exemption; schools of less than collegiate grade. (a) Property used exclusively for school purposes of less than collegiate grade, or exclusively for purposes of both schools of and less than collegiate grade, and owned and operated by religious, hospital or charitable funds, foundations or corporations, which property and funds, foundations, limited liability companies, or corporations meet all of the requirements of Section 214, shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the Constitution of the State of California and Section 214. This section shall not be construed to enlarge the college exemption.

(b) The amendments made by the act adding this subdivision shall apply with respect to lien dates occurring on and after January 1, 2005.

History.—Added by Stats. 1953, p. 1910, in effect September 9, 1953. Stats. 1974, Ch. 311, p. 596, in effect January 1, 1975, substituted "subdivision (b) of Section 4 and Section 5" for "Section 1c" in the first sentence. Stats. 2004, Ch. 354 (AB 3073), in effect August 30, 2004, designated the former first paragraph as new subdivision (a) and added ", limited liability companies," after "foundations," in the second sentence therein; and added subdivision (b).

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.

Back to top


214.7. Welfare exemption; use of hospitals. In the case of a hospital, neither the use of hospital property nor the receipt of fees or other lawful compensation by a licensed physician for the practice of his profession therein, shall be grounds for denial of the exemption provided by Sections 214 and 254.5. This section does not apply to such portions of a hospital as may be leased or rented to a physician for his office for the general practice of medicine.

History.—Added by Stats. 1955, p. 1003, in effect September 7, 1955.

Note.—Stats. 1955, p. 1003, adding Section 214.7, provides that the act shall be operative as of January 1, 1955; and that if any part is unconstitutional, it shall not affect the remainder.

214.8. Welfare exemption; limitation. (a) Except as provided in Sections 213.7 and 231, and as provided in subdivision (g) of Section 214 with respect to veterans' organizations, the "welfare exemption" shall not be granted to any organization unless it is qualified as an exempt organization under either Section 23701d of this code or Section 501(c)(3) of the Internal Revenue Code. This section shall not be construed to enlarge the "welfare exemption" to apply to organizations qualified under Section 501(c)(3) of the Internal Revenue Code of 1954 but not otherwise qualified for the "welfare exemption" under other provisions of this code.

The exemption for veterans' organizations shall not be granted to any organization unless it is qualified as an exempt organization under either Section 23701f or 23701w of this code or under Section 501(c)(4) or 501(c)(19) of the Internal Revenue Code. This section shall not be construed to enlarge the "veterans' organization exemption" to apply to organizations qualified under Section 501(c)(4) or 501(c)(19) of the Internal Revenue Code but not otherwise qualified for the "veterans' organization exemption" under other provisions of this code.

(b) For purposes of subdivision (a), an organization shall not be deemed to be qualified as an exempt organization unless the organization files with the assessor a valid organizational clearance certificate issued pursuant to Section 254.6.

(c) (1) For purposes of subdivision (a), a limited liability company wholly owned by one or more qualifying organizations, which may include governmental entities and nonprofit organizations, that are exempt under Section 23701d or under Section 501(c)(3) of the Internal Revenue Code shall qualify as an exempt organization.

(2) In the case of a limited liability company that does not have a valid unrevoked letter from the Franchise Tax Board or the Internal Revenue Service, the limited liability company may not be deemed to be qualified as an exempt organization unless each nonprofit tax-exempt member of the limited liability company files with the board a copy of a valid, unrevoked letter or ruling from either the Franchise Tax Board or the Internal Revenue Service that states that the organization qualifies as an exempt organization under the appropriate provisions of the Revenue and Taxation Code or the Internal Revenue Code.

(d) The amendments made by the act adding this subdivision shall apply with respect to lien dates occurring on and after January 1, 2005.

History.—Added by Stats. 1973, Ch. 5, p. 5, in effect February 28, 1973, operative March 1, 1973. Sec. 5 thereof provided no payment by state to local governments because of this act. Stats. 1977, Ch. 246, in effect January 1, 1978, substituted "Sections" for "Section" in the first paragraph and added "or 501(c)(19)" in the second paragraph. Stats. 1986, Ch. 1457, effective January 1, 1987, added the subdivision letters; substituted "unless it is" for "which is not" after "organization" and added "either" after "under" in the first sentence of the first paragraph and in the first sentence of the second paragraph of subdivision (a); and added subdivision (b). Stats. 1990, Ch. 126, in effect June 11, 1990, deleted "of 1954" after "Internal Revenue Code" in the first sentence of the first paragraph and in the first sentence of the second paragraph of subdivision (a). Stats. 1992, Ch. 807, in effect January 1, 1993, added "as provided in . . . veterans' organizations," after "and 231" in the first sentence of subdivision (a). Stats. 1995, Ch. 497, in effect January 1, 1996, added "or 23701w" after "Section 23701f" in the first sentence of the second paragraph of subdivision (a). Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, added "of the Internal Revenue Code" after "501(c)(19)" in the second sentence of the second paragraph of subdivision (a) and substituted "a valid organizational clearance certificate issued pursuant to Section 254.6" for "duplicate copies of a valid, unrevoked letter or ruling from either the Franchise Tax Board or, in the alternative, the Internal Revenue Service, which states that the organization qualifies as an exempt organization under the appropriate provisions of the Bank and Corporation Tax Law or the Internal Revenue Code" after "with the assessor" in the first sentence of subdivision (b). Stats. 2004, Ch. 354 (AB 3073), in effect August 30, 2004, added subdivision (c) and (d). Stats. 2006, Ch. 224 (SB 1607), in effect January 1, 2007, added ", which may include governmental entities and nonprofit organizations," after "more qualifying organizations" in the first sentence of paragraph (1) and added "nonprofit tax-exempt" after "organization unless each" in the first sentence of paragraph (2) of subdivision (c).

Construction.—An organization which is unable to satisfy the "exclusively charitable" requirements of both section 23701(d) of the Revenue and Taxation Code and section 501(c)(3) of the Internal Revenue Code is barred from the benefits of the welfare exemption by the express terms of this section City of Los Angeles v. Los Angeles County, 19 Cal.App.3d 968.

Back to top


214.9. Welfare exemption; hospital includes outpatient clinic. For the purposes of Section 214, a "hospital" includes an outpatient clinic, whether or not patients are admitted for overnight stay or longer, where the clinic furnishes or provides psychiatric services for emotionally disturbed children, or where the clinic is a nonprofit multispecialty clinic of the type described in subdivision (l) of Section 1206 of the Health and Safety Code, so long as the multispecialty clinic does not reduce the level of charitable or subsidized activities it provides as a proportion of its total activities.

For purposes of this section, a "hospital" does not include those portions of an outpatient clinic which may be leased or rented to a physician for an office for the general practice of medicine.

History.—Added by Stats. 1961, p. 4589, in effect September 15, 1961. Stats. 1987, Ch. 1228, in effect January 1, 1988, added ", or where the clinic . . . proportion of its total activities" after "children" in the first sentence of the first paragraph, and added the second paragraph.

Note.—Section 3 of Stats. 1987, Ch. 1228, provided that this act makes a classification or exemption of property for purposes of ad valorem taxation within the meaning of Section 2229 of the Revenue and Taxation Code. Sec. 4 thereof provided that the amendment made by this act shall be operative for the 1988–89 fiscal year and fiscal years thereafter.

214.10. Welfare exemption; government funding. For purposes of Section 214, any nonprofit corporation organized and operated for the advancement of education, improvement of social conditions, and improvement of the job opportunities of low-income, unemployed and underemployed citizens of the communities in which they operate, and otherwise meeting all the requirements of Section 214, shall not be disqualified from receiving the welfare exemption solely because such organization receives all its funds from governmental agencies.

History.—Added by Stats. 1979, Ch. 1161, in effect September 29, 1979.

Note.—Section 22 of Stats. 1979, Ch. 1161, provided no payment by state to local governments because of this act.

214.11. Welfare exemption; needs of hospitals. For purposes of Section 214, property owned and operated by a nonprofit organization, otherwise qualifying for exemption under Section 214, shall be deemed to be exclusively used for hospital purposes so long as the property is exclusively used to meet the needs of hospitals which qualify for exemption from property taxation under Section 214 or any other law of the United States or this state. As used in this section, "needs of hospitals" includes any use incidental to, and reasonably necessary for, the functioning of a full hospital operation.

History.—Added by Stats. 1981, Ch. 1141, in effect October 2, 1981, operative January 1, 1982. Stats. 1983, Ch. 960, in effect January 1, 1984, substituted "qualify . . . state" for "themselves qualify under Section 214" after "which" in the first sentence.

Note.—Section 16 of Stats. 1981, Ch. 1141, provided the Controller shall report to the Legislature on the amount of claims made by county auditors under Section 16113 of the Government Code for compensation for property tax revenues lost by reason of the classification or exemption of property by this act.

Note.—Section 2 of Stats. 1983, Ch. 960, provided the Controller shall report to the Legislature on the amount of claims made by county auditors under Section 16113 of the Government Code for compensation for property tax revenues lost by reason of the classification or exemption of property by this act. The report shall be made in order that the Legislature may appropriate funds for the subventions required by Section 2229 of the Revenue and Taxation Code. Sec. 8 thereof provided that no appropriation is made by this act for the purpose of making reimbursement pursuant to these sections.

Back to top


214.12. Welfare exemption; possessory interest or improvements. [Repealed by Stats. 1991, Ch. 646, in effect January 1, 1992.]

214.13. Welfare exemption; redevelopment plans. Where property under development pursuant to the Community Redevelopment Law (Pt. 1 (commencing with Sec. 33000), Div. 24, H.&S.C.) is dedicated to religious, charitable, scientific, or hospital purposes in the redevelopment plan and is required by the plan to be conveyed to the state, a county, a city, or a nonprofit entity entitled to a welfare exemption, that property shall be deemed to be within the exemption provided for in Section 5 of Article XIII of the Constitution of the State of California and this section, and shall be exempt from property tax during construction, provided the title to the property is to be conveyed to the state, a county, a city, or nonprofit agency within three years of the completion of the construction. If that title is not passed to the state, a county, a city, or nonprofit organization entitled to a welfare exemption within three years of the completion of construction, the owner of the property shall be liable for the taxes that would have been imposed, plus a penalty of 25 percent of the amount due.

History.—Added by Stats. 1984, Ch. 1261, in effect January 1, 1985.

Note.—Section 3 of Stats. 1984, Ch. 1261, provided no payment by state to local governments because of this act.

214.14. Welfare exemption; museums. (a) Property used exclusively for the charitable purposes of museums and owned and operated by a religious, hospital, scientific, or charitable fund, foundation, limited liability company, or corporation which meets all the requirements of subdivision (a) of Section 214 shall be deemed to be within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution and Section 214.

(b) For purposes of this section:

(1) Property used exclusively for the charitable purposes of museums shall include property used for activities and facilities related to the primary charitable purposes of museums and reasonably necessary and incidental to those purposes.

(2) Property used exclusively for the charitable purposes of museums shall not be required to be indispensable to the primary charitable purposes of museums.

(3) Property used exclusively for the charitable purposes of museums shall not include property used for activities and facilities not related to the primary charitable purposes of museums and not reasonably necessary or incidental to those purposes.

(4) Property used exclusively for the charitable purposes of museums shall include property owned by a nonprofit association or organization performing auxiliary services to any city or county museum in the state and used for the storage of items donated for an annual rummage sale, the proceeds of which, after taking into account the expenses of the nonprofit association or organization, are used to provide support to those museums. For purposes of this subdivision, "storage of items donated for an annual rummage sale" shall not be considered a "fundraising activity," as that term is used in paragraph (3) of subdivision (a) of Section 214.

(c) The amendments made by the act adding this subdivision shall apply with respect to lien dates occurring on and after January 1, 2005.

History.—Added by Stats. 1989, Ch. 912, in effect January 1, 1990. Stats. 1996, Ch. 897, in effect September 25, 1996, added "the" before "charitable" in the first sentence of the first paragraph, and in subdivisions (b) and (c); substituted "reasonably" for "reasonable" after "not" in subdivision (c);and added subdivision (d). Stats. 2004, Ch. 354 (AB 3073), in effect August 30, 2004, designated the former first paragraph as subdivision (a) and added "limited liability company," after "fund, foundation" therein; created the first sentence of new subdivision (b) with the former second sentence of subdivision (a), designated former subdivisions (a), (b), (c) and (d) as new paragraphs (1), (2), (3) and (4), respectively, added "the" after "exclusively for" in the first sentence of paragraph (1), (2) and (3) of new subdivision (b); and added new subdivision (c).

Note.—Section 1 of Stats. 1989, Ch. 912 provided that the Legislature finds and declares:

(a) It is the public policy of this state to encourage the operation of museums for public and charitable purposes, and for the cultural and educational benefits museums provide.

(b) It has consistently been the intent of the Legislature, and so interpreted by the courts, that property owned and operated for charitable purposes of a museum by a tax exempt organization qualifies for the welfare exemption under Section 214 of the Revenue and Taxation Code.

(c) It has never been the intent of the Legislature to disqualify from the welfare exemption those properties used for activities or facilities reasonably necessary and incidental to the charitable purposes of museums, including restaurants, cafes, bars, or other food service facilities, and bookstore/giftshops selling primarily educational materials, for the convenience of museum visitors and staff.

(d) Rising costs of administration and operation, dwindling federal and state funding, and declining tax incentives for private donations have made it extremely difficult for museums to secure adequate funding.

(e) It is essential to maintain and enhance the three main funding avenues currently available to museums: tax exemptions, private contributions, and earned income.

(f) To require museums to pay property taxes, in whole or in part, on the basis of traditional activities incidental to or reasonably necessary for the advancement of museum purposes, would seriously hamper the ability of museums to function effectively and would cause them to divert funds that otherwise would be available to provide greater cultural, historical, and educational benefits to the entire state.

(g) The provisions of this act serve the public purpose of encouraging museum operations and thereby advance cultural and educational progress in furtherance of declared state policy.

Sec. 3 thereof stated that the addition of this section made at the 1989–90 Regular Session of the Legislature does not constitute a change in, but is declaratory of, existing law. Sec. 4 thereof provided that nothing in this act shall be construed as an admission on the part of the State Board of Equalization or an expression of opinion by the Legislature that the interpretations or applications of the welfare exemption by the board for prior years were in any way incorrect or invalid.

Back to top


214.15. Welfare exemption; vacant land owned by low-income housing builders. (a) Property is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.

(b) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residence as described in that subdivision, or a single or multifamily residence as so described that is in the course of construction.

(2) With regard to paragraph (1), the Legislature finds and declares all of the following:

(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income residents.

(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporation's exempt purposes and activities.

(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.

History.—Added by Stats. 1999, Ch. 927 (AB 1559), in effect October 10, 1999, operative January 1, 2000.

Note.—Section 4 of Stats. 1999, Ch. 927 (AB 1559) provided that the addition of subdivision (a) of Section 214.15 of the Revenue and Taxation Code by this act does not constitute a change in, but is declaratory of, existing law. Sec. 5 thereof provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. Sec. 6 thereof provided that the provisions of this act shall apply on and after the January 1, 2000, lien date.

Back to top


214.16. Welfare exemption; Century Freeway low income housing projects. (a) Any outstanding tax, interest, or penalty that was levied or imposed upon property that qualifies for an exemption pursuant to Section 214 and satisfies the criteria specified in subparagraph (D) of paragraph (1) of subdivision (g) of Section 214 between January 1, 2002, and January 1, 2009, shall be canceled, provided that the owner of the property certifies that all of the following conditions were met at the time the tax was levied:

(1) The owner was not organized and did not operate for profit.

(2) There was a recorded deed restriction or other legal document that restricted the project's usage and that provided that the units designated for use by lower income households were continuously available to or occupied by lower income households at rents not exceeding those prescribed by Section 50053 of the Health and Safety Code.

(3) The funds that would have been necessary to pay property taxes were used to maintain the affordability of, or reduce rents otherwise necessary for, the units occupied by lower income households.

(b) For purposes of this section, "lower income households" has the same meaning as defined by Section 50079.5 of the Health and Safety Code.

History.—Added by Stats. 2008, Ch. 524 (SB 1284), in effect September 28, 2008.

Note.—Section 1 of Stats. 2008, Ch. 524 (SB 1284) provided that the Legislature finds and declares all of the following: (a) That maintaining the affordability of lower income housing fulfills both of the following: (1) The legal commitment entered into by the Department of Transportation in a consent decree to replace affordable housing stock lost as a result of the construction of the Century Freeway.

(2) Addresses California's serious shortage of decent, safe, and sanitary housing, which persons and families of low or moderate income, including the elderly and handicapped, can afford.

(b) That expanding the criteria for the partial welfare exemption, as provided by this act, extends the application of the partial welfare exemption in a consistent manner to all eligible taxpayers in order to ensure that all eligible and similarly situated taxpayers are treated in a fair and equitable manner.

(c) Therefore, the Legislature finds and declares that this act serves a public purpose of the state.

Section 4 thereof provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenue lost by it pursuant to this act.

215. Veteran organizations. All personal property owned by a veteran organization which has been chartered by the Congress of the United States, when the same are used solely and exclusively for the purposes of such organization, if not conducted for profit and no part of the net earnings of which inures to the benefit of any private individual or member thereof, shall be exempt from taxation.

History.—Added by Stats. 1945, p. 706, in effect September 15, 1945. Stats. 1970, p. 1072, in effect November 23, 1970, deleted "and all buildings, and so much of the real property on which the buildings are situated as may be required for the convenient use and occupation of said buildings," after "all personal property" in the first sentence, and deleted the second paragraph.

Back to top


215.1. Veterans' organization exemption. (a) All buildings, and so much of the real property on which the buildings are situated as may be required for the convenient use and occupation of the buildings, used exclusively for charitable purposes, owned by a veterans' organization which has been chartered by the Congress of the United States, organized and operated for charitable purposes, when the same are used solely and exclusively for the purpose of the organization, if not conducted for profit and no part of the net earnings of which inures to the benefit of any private individual or member thereof, shall be exempt from taxation.

(b) The exemption provided for in this section shall apply to the property of all organizations meeting the requirements of this section and subdivision (b) of Section 4 of Article XIII of the California Constitution and paragraphs (1) to (7), inclusive, of subdivision (a) of Section 214.

(c) An organization that files a claim for the exemption provided for in this section shall file with the assessor a valid organizational clearance certificate issued pursuant to Section 254.6.

(d) This exemption shall be known as the "veterans' organization exemption."

History.—Added by Stats. 1973, Ch. 5, p. 5, in effect February 28, 1973, operative March 1, 1973. Stats. 1975, Ch. 224, p. 602, in effect January 1, 1976, substituted "subdivision (b) of Section 4" for "Section 1c" in the first sentence of the second paragraph. Stats. 1987, Ch. 498, effective January 1, 1988, added "California" and deleted "of the State of California" before "Constitution", deleted "of the State of California" after "Constitution", substituted "paragraphs" for "subdivisions" after "and", added "of subdivision (a)" after "inclusive," and deleted "of this code" after "Section 214" in the first sentence of the second paragraph. Stats. 2007, Ch. 449 (SB 1045), in effect January 1, 2008, designated the former first paragraph as subdivision (a) and substituted "the" for "said" after "and occupation of" and substituted "the" for "such" after "the purpose of" in the first sentence therein; designated the former second paragraph as subdivision (b); added subdivision (c); and designated the former third paragraph as subdivision (d).

Note.—Section 5 of Stats. 1973, Ch. 5, provided no payment by state to local governments because of this act.

Note.—Stats. 1972, p. 197, by which this section was first enacted, also provided: It has been stated that former Section 1c of Article XIII of the Constitution is not broad enough to serve to exempt buildings used for meetings and social gatherings of veterans' organizations. However, the Legislature finds that some of these organizations, such as the American Legion, are incorporated for purposes such as the following:

". . . To uphold and defend the Constitution of the United States of America; to promote peace and good will among the peoples of the United States and all the nations of the earth; to preserve the memories and incidents of the two world wars and the other great hostilities fought to uphold democracy; to cement the ties and comradeship born of service; and to consecrate the efforts of its members to mutual helpfulness and serve to their country."

It is established that "charity," as used in Section 1c of Article XIII is not limited to the giving of alms to the poor. It has been defined in a number of cases as a gift to be applied consistently with existing laws, for the benefit of an indefinite number of persons—either by bringing their hearts under the influence of education or religion, by relieving their bodies from disease, suffering, or constraint, by assisting them to establish themselves in life, or by erecting or maintaining public buildings or works, or otherwise lessening the burdens of government.

Moreover, it is recognized that a charitable exemption may be granted to property of organizations providing such diverse services as civic theater performances and recreational opportunities for members of a boys' club for 10 weeks each year.

In acting under Section 1c of Article XIII, the Legislature must necessarily construe the terms of the provision in order to determine the extent of its authority to act thereunder, and the Legislature finds it reasonable to exempt the property of organizations devoted to spreading patriotism and unity and to promoting respect for those who serve their country in the armed services in times of peril, and which bring the hearts of the youth of this state under the influence of education through their various programs (such as Boys State, Boy Scout sponsorship and oratorical contests dealing with the Constitution of the United States), and which lessen the burdens of government through their additional programs (such as veterans employment, Veterans Administration volunteer services in hospitals, and junior baseball).

The members of such an organization must necessarily have some accommodations in which to meet and correlate their activities, and the Legislature finds that such activities are incidental to, and reasonably necessary for, the accomplishment of the exempt activities of such organizations.

Back to top


215.2. Bingo. Property owned by an organization that satisfies the requirements of Section 214, 215, or 215.1 and which is used primarily for exempt purposes shall not be denied the welfare or veterans organization exemption because such property is also used for conducting bingo games pursuant to Section 326.5 of the Penal Code, provided that the proceeds from such games are used exclusively for the charitable purposes of such organization.

History.—Added by Stats. 1977, Ch. 271, in effect July 8, 1977.

215.5. Educational TV and FM stations. All personal property owned or leased by a nonprofit corporation, which does not accept advertising for a consideration and is engaged exclusively in the production of programs for educational television, and all personal property owned or leased by a nonprofit educational organization, which is engaged exclusively in the production of programs as a noncommercial educational FM or AM broadcast station, shall be exempt from taxation, if such personal property is used solely and exclusively for the purposes of such organization or corporation and no part of the corporation's or organization's net earnings inure to the benefit of any private shareholder or individual.

History.—Added by Stats. 1966, p. 607 (First Extra Session), in effect October 6, 1966. Stats. 1978, Ch. 1394, in effect January 1, 1979, added "or AM" after "FM". Sec. 3 thereof provided no payment by state to local governments because of this act.

216. Blind vending stand operators. The stock in trade up to one thousand five hundred dollars ($1,500) of a vending stand operated by a blind person licensed by the Bureau of Vocational Rehabilitation pursuant to federal or state law is exempt from taxation.

History.—Added by Stats. 1955, p. 2831, in effect September 7, 1955. Stats. 1963, p. 3227, in effect September 20, 1963, substituted "the Bureau of Vocational Rehabilitation pursuant to federal or state law" for "Chapter 11, Division 7 of Title 1 of the Government Code."

217. Works of art. (a) Except as provided in subdivision (d), the following articles of personal property that have been made available for display in a publicly owned art gallery or museum, or a museum that is regularly open to the public and that is operated by a nonprofit organization that qualifies for exemption pursuant to Section 23701d, shall be exempt from taxation:

(1) Original paintings in oil, mineral, water, vitreous enamel, or other colors, pastels, original mosaics, original drawings and sketches in pen, ink, pencil, or watercolors, or works of the free fine arts in any other media including applied paper and other materials, manufactured or otherwise, that are used on collages, artists' proof etchings unbound, and engravings and woodcuts unbound, lithographs, or prints made by other hand transfer processes unbound, or original sculptures or statuary. As used in this subdivision:

(A) "Sculpture" and "statuary" shall include professional productions of sculptors only whether in round or in relief, in bronze, marble, stone, terra cotta, ivory, wood, metal, or other materials, or whether cut, carved, or otherwise wrought by hand from the solid block or mass of marble, stone, alabaster, or from metal, or other materials, or cast in bronze or other metal or substance, or from wax or plaster, or constructed from any material or made in any form as the professional productions of sculptors, only.

(B) "Original" when used to modify the words "sculptures" and "statuary" shall include the original work or model and the first 10 castings, replicas, or reproductions made from the sculptor's original work or model with or without a change in scale, regardless of whether or not the sculptor is alive at the time the castings, replicas, or reproductions are completed.

(C) "Painting," "mosaic," "drawing," "work of the free fine arts," "sketch," "sculpture," and "statuary" shall not include any articles of utility, articles designed for industrial use, or any articles that are made wholly or in part by stenciling or any other mechanical process.

(D) "Etchings," "engravings," "woodcuts," "lithographs," or "prints made by other hand transfer processes," shall include only works that are printed by hand from plates, stones or blocks etched, drawn, or engraved with handtools and do not include works that are printed from plates, stones or blocks etched, drawn or engraved by photochemical or other mechanical processes.

(2) Original works of the free fine arts, that are not described in paragraph (1), are subject to regulations, as the board may prescribe, to prove that the article represents some school, kind, or medium of the free fine arts. As used in this paragraph "original works of the free fine arts" shall not include any article of utility or any article designed for industrial use.

(b) When making a claim for an exemption pursuant to this section, a person claiming the exemption shall provide all information required and answer all questions in an affidavit, under penalty of perjury. The assessor may require other proof of the facts stated before allowing the exemption. The affidavit shall be accompanied by a certificate of the director or other officer of the art gallery or museum in which the property for which an exemption is claimed under this section was made available for display that the property was available for public display in the art gallery or museum for the period specified in subdivision (e).

(c) Sections 255 and 260 shall be applicable to the exemption provided by this section.

(d) The exemption provided by subdivision (a) shall not apply to any work of art loaned by any person who holds works of art primarily for purposes of sale.

(e) The exemption provided by this section shall not apply unless the property was made available for public display in the art gallery or museum for a period of 90 days during the 12-month period immediately preceding the lien date for the year for which the exemption is claimed.

If the property was first made available for public display less than 90 days prior to the lien date, the exemption may be granted if the person claiming the exemption certifies in writing that the property will be made available for public display for at least 90 days during the 12-month period commencing with the first day the property was made available for public display.

(f) For purposes of this section "regularly open to the public" means that the gallery or museum was open to the public not less than 20 hours per week for not less than 35 weeks of the 12-month period immediately preceding the lien date for the year for which the exemption is claimed.

If the gallery or museum has been open for less than 35 weeks during the 12-month period immediately preceding the lien date or for less than 20 hours per week during that period, the exemption may be granted if the director or other officer of the gallery or museum certifies in writing that the gallery or museum will be open for not less than 20 hours per week for not less than 35 weeks during the 12-month period beginning with the day the gallery or museum was first opened.

(g) If a person certifies in writing that the property will be made available and the gallery or museum open for the periods specified in subdivisions (e) and (f), and the property is not so made available or the gallery or museum is not so opened, the exemption shall be canceled, and an escape assessment may be made as provided in Section 531.1.

History.—Added by Stats. 1965, p. 3372, in effect September 17, 1965. Stats. 1979, Ch. 1188, in effect September 30, 1979, substituted "or a museum which is regularly open to the public and which is operated by a nonprofit organization which has qualified for exemption pursuant to Section 23701d," for "for a minimum period of 90 days during the preceding year" in the first sentence of subdivision (a); added "or other officer" after "director", and substituted "the period specified in subdivision (e)" for "a period of 90 days or more during the preceding calendar year" in the third sentence of subdivision (b); and added subdivisions (e), (f), and (g). Stats. 2004, Ch. 200 (SB 1880), in effect January 1, 2005, substituted "that" for "which" three times and substituted "that qualifies" for "which has qualified" after "nonprofit organization" in the first sentence of the first paragraph of subdivision (a), substituted "that" for "such as" after "or otherwise," in the first sentence of paragraph (1), deleted "be understood to" after "and 'statuary' shall" in the first sentence of subparagraph (A); deleted "be understood to" after "and 'statuary' shall" and substituted "scale," for "scale and" after "change in" in the first sentence of subparagraph (B); substituted "include any articles of utility, articles designed for industrial use, or any articles that" for "be understood to include any articles of utility or for industrial use, nor such as" after "shall not" in the first sentence of subparagraph (C); and substituted "include only works that" for "be understood to include only such as" after "shall" and substituted "do not include works that" for "not such as" after "with handtools and" in the first sentence of subparagraph (D); and substituted "that are not described" for "not provided for" after "free fine arts," and substituted "are subject to regulations, as the board may prescribe, to prove" for "subject to such regulations as the board may prescribe as to proof" after "this subdivision" in the first sentence of paragraph (2) therein; substituted "shall provide all information required and answer all questions in an affidavit, under penalty of perjury." for "shall appear before the assessor, shall give all information required and answer all questions in an affidavit, and shall subscribe and swear to the affidavit before the assessor." after "claiming the exemption" in the first sentence of subdivision (b); and substituted "that" for "such" after "per week during" in the second sentence of subdivision (f). Stats. 2005, Ch. 22 (SB 1108), in effect January 1, 2006, added "or" after "processes unbound" in the first sentence of paragraph (1) and deleted "and" after " "engravings," " in the first sentence of subparagraph (D) therein, and deleted "of this subdivision" after "in paragraph (1)" in the first sentence of paragraph (2) of subdivision (a); and deleted "The provision of" before "Sections 255 and" in the first sentence of subdivision (c).

Note.—Section 10 of Stats. 1979, Ch. 1188, provided that questions have arisen in several counties concerning the application of the property tax exemption provided in Section 217 of the Revenue and Taxation Code for works of art exhibited in museums owned and operated for public and charitable purposes by tax exempt organizations which are open to the public. Several county assessors have questioned whether such museums are "publicly owned" within the meaning of Section 217 of the Revenue and Taxation Code and thus whether the museums are qualifying museums for the display of art for purposes of the exemption provided in Section 217 of the Revenue and Taxation Code. This applies to art works owned by the museum as well as to works of art loaned to such museums for display. A construction of Section 217 of the Revenue and Taxation Code which excludes museums owned and operated for public and charitable purposes by tax-exempt organizations from the definition of a "publicly owned art gallery or museum" would be inconsistent with long-standing administrative interpretations which have determined that such museums do qualify for the exemption provided in Section 217 of the Revenue and Taxation Code.

It is the public policy of this state to encourage the public display of art. Such policy shall be affirmed by a declaration of the existing law concerning the status of museums as provided in Section 1.7 of this act. It consistently has been the intent of the Legislature, and so interpreted administratively, that such museums be considered publicly owned within the meaning of Section 217 of the Revenue and Taxation Code so long as they are owned by a tax-exempt charitable organization and are open to the public.

The legislative policy has recently been expressed with the enactment of Section 6365 of the Revenue and Taxation Code relating to sales and use tax exemption on art purchases for museums. This declaration and amendments made to Section 217 of the Revenue and Taxation Code by Section 1.7 of this act would make such provisions consistent with the provisions in Section 6365 of the Revenue and Taxation Code. Sec. 11 thereof provided that changes made by Section 1.7 of this act are declarative of existing law, and that it is the intent of the Legislature that Section 1.7 be applied to determine the eligibility of exemptions under Section 217 of the Revenue and Taxation Code for any property otherwise taxable on March 1, 1979. Section 13 thereof provided no payment by state to local governments because of this act.

Back to top


217.1. Personalty available for display in aerospace museum. (a) Except as provided in subdivision (d), the following articles of personal property that are made available for display in a publicly owned aerospace museum, or an aerospace museum that is regularly open to the public and that is operated by a nonprofit organization that qualifies for exemption pursuant to Section 23701d, shall be exempt from taxation:

(1) Aircraft that have been restored or maintained, whether currently certified or not for flight purposes.

(2) Aircraft donated in perpetuity to the aerospace museum.

(b) When making a claim for an exemption pursuant to this section, a person claiming the exemption shall give all information required and answer all questions in an affidavit, and shall subscribe and swear to the affidavit, under penalty of perjury. The assessor may require other proof of the facts stated before allowing the exemption. The affidavit shall be accompanied by a certificate of the director or other officer of the aerospace museum in which the property for which an exemption is claimed under this section was made available for display that the property was available for public display in the aerospace museum for the period specified in subdivision (e).

(c) For the 1984–85 assessment year and each assessment year thereafter, the provisions of Sections 255 and 260 shall be applicable to the exemption provided by this section.

(d) The exemption provided by subdivision (a) shall not apply to any aircraft loaned by any person who holds aircraft primarily for purposes of sale.

(e) The exemption provided by this section shall not apply unless the property was made available for public display in the aerospace museum for a period of 90 days during the 12-month period immediately preceding the lien date for the year for which the exemption is claimed.

If the property was first made available for public display less than 90 days prior to the lien date, the exemption may be granted if the person claiming the exemption certifies in writing that the property will be made available for public display for at least 90 days during the 12-month period commencing with the first day the property was made available for public display.

(f) For purposes of this section, "regularly open to the public" means that the aerospace museum was open to the public not less than 20 hours per week for not less than 35 weeks of the 12-month period immediately preceding the lien date for the year for which the exemption is claimed.

If the aerospace museum has been open for less than 35 weeks during the 12-month period immediately preceding the lien date or for less than 20 hours per week during that period, the exemption may be granted if the director or other officer of the aerospace museum certifies in writing that the aerospace museum will be open for not less than 20 hours per week for not less than 35 weeks during the 12-month period beginning with the date the aerospace museum was first opened.

(g) If a person certifies in writing that the property will be made available and the aerospace museum open for the periods specified in subdivisions (e) and (f), and the property is not so made available or the aerospace museum is not so opened, the exemption shall be canceled, and an escape assessment may be made as provided in Section 531.1.

(h) The exemption provided by this section shall be applicable for the 1979–80 fiscal year and each fiscal year thereafter.

History.—Added by Stats. 1983, Ch. 1102, in effect September 27, 1983. Stats. 1984, Ch. 946, in effect September 10, 1984, added "For the 1984–85 . . . thereafter," before "the" in subdivision (c); and added subdivision (h). Stats. 1991, Ch. 646, in effect January 1, 1992, deleted the second sentence of subdivision (h) which provided "With respect to property otherwise qualifying for the exemption provided by this section in the 1979–80 fiscal year to 1983–84 fiscal year, inclusive, any tax or penalty or interest thereon for those fiscal years shall be canceled if an appropriate claim for exemption has been filed on or before March 1, 1985.". Stats. 2004, Ch. 200 (SB 1880), in effect January 1, 2005, substituted "that are" for "which have been" after "personal property", substituted "that" for "which" twice after "an aerospace museum" and "the public and" respectively, and substituted "that qualifies" for "which has qualified" after "nonprofit organization" in the first sentence of the first paragraph of subdivision (a) and substituted "that" for "which" after "Aircraft" in paragraph (1) therein; and substituted ", under penalty of perjury." for "before, at the election of the claimant, either the assessor or a notary public." after "to the affidavit" in the first sentence of subdivision (b).

Note.—Section 38.5 of Stats. 1983, Ch. 1102, provided that notwithstanding Section 2229 of the Revenue and Taxation Code, the requirements of that section do not apply to the exemption of property for purposes of ad valorem property taxation provided by Section 217.1 of the Revenue and Taxation Code, as added by this act. No appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. Sec. 40 thereof provided that the provisions of this act shall remain in effect unless and until they are amended or repealed by a later enacted act.

Note.—See note following Section 95.

Back to top


218. Homeowners' exemption. (a) The homeowners' property tax exemption is in the amount of the assessed value of the dwelling specified in this section, as authorized by subdivision (k) of Section 3 of Article XIII of the California Constitution. That exemption shall be in the amount of seven thousand dollars ($7,000) of the full value of the dwelling.

(b) (1) The exemption does not extend to property that is rented, vacant, under construction on the lien date, or that is a vacation or secondary home of the owner or owners, nor does it apply to property on which an owner receives the veteran's exemption.

(2) Notwithstanding paragraph (1), if a person receiving the exemption is not occupying the dwelling on the lien date because the dwelling was damaged in a misfortune or calamity, the person shall be deemed to occupy that same dwelling as his or her principal place of residence on the lien date, provided the person's absence from the dwelling is temporary and the person intends to return to the dwelling when possible to do so. Except as provided in paragraph (3), when a dwelling has been totally destroyed, and thus no dwelling exists on the lien date, the exemption provided by this section shall not be applicable until the structure has been replaced and is occupied as a dwelling.

(3) A dwelling that was totally destroyed in a disaster for which the Governor proclaimed a state of emergency, that qualified for the exemption provided by this section prior to the commencement date of the disaster and that has not changed ownership since the commencement date of the disaster, shall be deemed occupied by the person receiving the exemption on the lien date provided the person intends to reconstruct a dwelling on the property and occupy the dwelling as his or her principal place of residence when it is possible to do so.

(c) For purposes of this section, all of the following apply:

(1) "Owner" includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.

(2) (A) "Dwelling" means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.

(B) "Dwelling" includes the following:

(i) A single-family dwelling occupied by an owner thereof as his or her principal place of residence on the lien date.

(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as his or her principal place of residence.

(iii) A condominium occupied by an owner thereof as his or her principal place of residence on the lien date.

(iv) Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as his or her principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of share or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.

(d) The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.

History.—Added by Stats. 1968, p. 8 (First Extra Session), in effect September 23, 1968, operative March 1, 1969. Stats. 1970, p. 1030, in effect November 23, 1970, added the second sentence to the second paragraph. Stats. 1971, p. 3781, in effect March 4, 1972, operative for property taxes for the 1972–73 fiscal year and fiscal years thereafter added "or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling" after "sale" in the third sentence of the first paragraph and added subsection (d). Stats. 1972, p. 1, in effect January 18, 1972, substituted "homeowners' " for "homeowner's" in the first sentence. Section 218 as amended by Stats. 1971, Ch. 1752, was repealed by Stats. 1972, p. 2958, in effect December 26, 1972, operative on the lien date in 1973. Section 218 was reenacted by the same Stats. 1972, p. 1958, with the same effective and operative dates which increased the amount of the exemption from $750 to $1,750 and made the exemption applicable to a multiple dwelling unit occupied by the owner of more than two units. Stats. 1973, Ch. 842, p. 1506, in effect January 1, 1974, inserted "paragraphs (1) and (2) of subdivision (a) of" before "section 17265" in subsection (d). Stats. 1974, Ch. 311, p. 597, in effect January 1, 1975, substituted "subdivision (k) of Section 3" for "Section 1d" in the first sentence of the first paragraph and in the first sentence of the sixth paragraph. Stats. 1976, Ch. 1060, p. 4691, in effect September 21, 1976, deleted "or to property for which an owner received an allowance for taxes, either in whole or in part, either directly or indirectly, for the property tax year from the state or any political subdivision thereof, except assistance received under Part 10.5 (commencing with Section 19501) of Division 2 of this code" after "veteran's exemption" in the first sentence of the fourth paragraph, and added the seventh paragraph. Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981, added the second sentence to the first paragraph and deleted the second and third paragraphs. Stats. 1986, Ch. 608, effective date January 1, 1987, inserted "or her" after "his" in subsections (a) and (b), substituted "subdivision (h) of Section 61, as his or her" for "paragraphs (1) and (2) of subdivision (a) of Section 17265, as his" after "defined in" in the first sentence of subsection (d), and deleted the former fifth paragraph regarding pending litigation affecting this section. Stats. 1992, Ch. 1180, in effect January 1, 1993, substituted "that" for "such" before "exemption" in the second sentence of the first paragraph, added "or her" after "his" in subdivision (c); and added the fourth paragraph. Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, designated the former first paragraph as subdivision (a); designated the former first sentence of the second paragraph as subdivision (b) and substituted "that" for "which" twice therein; created subdivision (c) by adding the phrase "For purposes of this section, all of the following apply:", and designated the former second sentences of the second paragraph as paragraph (1) thereof, designated the former first and second sentence of the former third paragraph as paragraph (2) thereof, deleted "For purposes of this section" before "A two-dwelling" therein, deleted the former third sentence of the second paragraph that provided "As used in this section 'dwelling' shall include:", added subparagraph (B), designated former subsections (a), (b), (c), and (d) of the former second paragraph as clauses (i), (ii), (iii) and (iv), respectively, and substituted "subdivision (i)" for "subdivision (h)" after "as defined in" in the first sentence of clause; and designated the former fourth and fifth paragraphs as subdivisions (d) and (e), respectively. Stats. 2004, Ch. 792 (SB 1147), in effect September 25, 2004, relettered former subdivision (e) as new subdivision (g) and added new subdivisions (e) and (f). Stats. 2005, Ch. 624 (AB 18), in effect October 6, 2005, relettered former subdivision (g) as subdivision (i) and added new subdivisions (g) and (h). Stats. 2006, Ch. 897 (AB 2735), in effect September 30, 2006, relettered former subdivision (i) as subdivision (k) and added new subdivisions (i) and (j). Stats. 2007, Ch. 224 (AB 62), in effect September 21, 2007, relettered former subdivision (k) as subdivision (o) and added subdivisions (k), (l), (m) and (n). Stats. 2008, Ch. 386 (SB 1064), in effect September 27, 2008, relettered former subdivision (o) as subdivision (v) and added subdivisions (o), (p), (q), (r), (s), (t) and (u). Stats. 2009, Ch. 299 (AB 1568), in effect January 1, 2010, added "California" after "Article XIII of the" in the first sentence of subdivision (a); relettered former subdivision (v) as subdivision (z) and added "California" after "Article XIII of the" in the first sentence therein; and added subdivisions (v), (w), (x), and (y). Stats. 2010, Ch. 654 (SB 1494), in effect January 1, 2011, designated the first paragraph of subdivision (b) as paragraph (1) thereof and added paragraphs (2) and (3) thereto; deleted former subdivisions (d) through (y) which related to dwellings damaged or destroyed by specific disasters occurring in prior years; and relettered former subdivision (z) as subdivision (d).

Note.—Section 6 of Stats. 2009, Ch. 299 (AB 1568), in effect January 1, 2010, provided that it is the intent of the Legislature to provide in the annual Budget Act those additional reimbursements to local governments that, as a result of Section 1 of this act, are required by Section 25 of Article XIII of the California Constitution.

Section 7 thereof provided that the Legislature finds and declares that this act fulfills a statewide public purpose because of all of the following:

(a) The Governor of California has officially proclaimed a state of emergency declaring that the wildfires that occurred within the Counties of Los Angeles and Ventura, commencing in October 2008 or November 2008, constitute conditions of extreme peril to public health and safety to persons and property within those counties, thus qualifying affected persons for various forms of governmental assistance and relief.

(b) The Governor of California has officially proclaimed a state of emergency declaring that the wildfires that occurred within the Counties of Orange, Riverside, and San Bernardino, commencing in November 2008, constitute conditions of extreme peril to public health and safety to persons and property within those counties, thus qualifying affected persons for various forms of governmental assistance and relief.

(c) The Governor of California has officially proclaimed a state of emergency declaring that the wildfires that occurred within the County of Santa Barbara, commencing in November 2008 or May 2009, constitute conditions of extreme peril to public health and safety to persons and property within that county, thus qualifying affected persons for various forms of governmental assistance and relief.

(d) This act is consistent with, and supplements, the proclaimed disaster assistance and relief by providing necessary fiscal assistance and tax relief to affected jurisdictions and persons to allow them to maintain essential basic services and repair damage to, and restore, their homes and businesses.

Construction.—Owners of leasehold condominiums are entitled to this exemption because the interests satisfied the statutory definitional requirements of a condominium, and since a condominium may be a leasehold or subleasehold in duration, each owner owned a condominium within the meaning of this section. In the context of assessments, the term "owner" is used for both fee and nonfee condominiums, and nonfee condominiums include leasehold and subleasehold condominiums. Smith v. State Board of Equalization, 53 Cal.App.4th 331. Under Revenue and Taxation Code Sections 218 and 69.5, in order to transfer the base year value of an original property to a replacement property, the original property must be the principal residence of a person over the age of 55 years who was the owner of record at the time of the sale of original property. When an individual transferred the original property to his wholly owned corporation before it was sold, he did not qualify for either the homeowner's exemption or a base year value transfer. The individual had to accept the tax consequences of this choice to transfer to a corporation whether or not such consequences were contemplated. Grotenhuis v. County of Santa Barbara (2010) 182 Cal.App.4th 1158.

Back to top


218.1. Homeowners' exemption; April and May 1992 civil disturbance. [Repealed by Stats. 2004, Ch. 200 (SB 1880), in effect January 1, 2005.]

218.2. Homeowners' exemption; January 2010 Humboldt earthquake. (a) For purposes of this section, all of the following apply:

(1) "Owner" includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.

(2) (A) "Dwelling" means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.

(B) "Dwelling" includes the following:

(i) A single-family dwelling occupied by an owner thereof as his or her principal place of residence on the lien date.

(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as his or her principal place of residence.

(iii) A condominium occupied by an owner thereof as his or her principal place of residence on the lien date.

(iv) Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as his or her principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of share or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.

(b) Any dwelling that qualified for an exemption under Section 218 prior to January 9, 2010, that was damaged or destroyed by the earthquake and any other related casualty that occurred as a result of the disaster in the County of Humboldt, as declared by the Governor in January 2010, and that has not changed ownership since January 9, 2010, shall not be disqualified as a "dwelling" or be denied an exemption under this section solely on the basis that the dwelling was temporarily damaged or destroyed or was being reconstructed by the owner, or was temporarily uninhabited as a result of restricted access to the property due to the earthquake.

(c) The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.

History.—Added by Stats. 2010, Ch. 449 (AB 1690), in effect September 29, 2010.

Note.—Section 7 of Stats. 2010, Ch. 449 (AB 1690), provided that it is the intent of the Legislature to provide in the annual Budget Act those additional reimbursements to local governments that, as a result of Section 4 of this act, are required by Section 25 of Article XIII of the California Constitution.

Back to top


218.3. Homeowners' exemption; April 2010 Imperial earthquake. (a) For purposes of this section, all of the following apply:

(1) "Owner" includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.

(2) (A) "Dwelling" means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.

(B) "Dwelling" includes the following:

(i) A single-family dwelling occupied by an owner thereof as his or her principal place of residence on the lien date.

(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as his or her principal place of residence.

(iii) A condominium occupied by an owner thereof as his or her principal place of residence on the lien date.

(iv) Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as his or her principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of share or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.

(b) Any dwelling that qualified for an exemption under Section 218 prior to April 4, 2010, that was damaged or destroyed by the earthquake and any other related casualty that occurred as a result of the disaster in the County of Imperial, as declared by the Governor in April 2010, and that has not changed ownership since April 4, 2010, shall not be disqualified as a "dwelling" or be denied an exemption under Section 218 solely on the basis that the dwelling was temporarily damaged or destroyed or was being reconstructed by the owner, or was temporarily uninhabited as a result of restricted access to the property due to the earthquake.

(c) The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.

History.—Added by Stats. 2010, Ch. 461 (AB 2136), in effect September 29, 2010.

Note.—Section 8 of Stats. 2010, Ch. 461 (AB 2136), provided that it is the intent of the Legislature to provide in the annual Budget Act those additional reimbursements to local governments that, as a result of Section 5 of this act, are required by Section 25 of Article XIII of the California Constitution.

Back to top


218.4. Homeowners' exemption; 2009-10 wildfires and 2010 winter storms. (a) For purposes of this section, all of the following apply:

(1) "Owner" includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.

(2) (A) "Dwelling" means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.

(B) "Dwelling" includes the following:

(i) A single-family dwelling occupied by an owner thereof as his or her principal place of residence on the lien date.

(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as his or her principal place of residence.

(iii) A condominium occupied by an owner thereof as his or her principal place of residence on the lien date.

(iv) Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as his or her principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of share or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.

(b) Any dwelling that qualified for an exemption under Section 218 prior to the commencement dates of the wildfires listed in the Governor's disaster proclamation of August 2009, that was damaged or destroyed by the wildfires and any other related casualty that occurred as a result of this disaster in the Counties of Los Angeles and Monterey, as declared by the Governor in August 2009, and that has not changed ownership since the commencement dates of these disasters as listed in the proclamations, shall not be disqualified as a "dwelling" or be denied an exemption under Section 218 solely on the basis that the dwelling was temporarily damaged or destroyed or was being reconstructed by the owner, or was temporarily uninhabited as a result of restricted access to the property due to the wildfires.

(c) Any dwelling that qualified for an exemption under Section 218 prior to August 30, 2009, that was damaged or destroyed by the wildfires and any other related casualty that occurred as a result of this disaster in the County of Placer, as declared by the Governor in August 2009, and that has not changed ownership since August 30, 2009, shall not be disqualified as a "dwelling" or be denied an exemption under Section 218 solely on the basis that the dwelling was temporarily damaged or destroyed or was being reconstructed by the owner, or was temporarily uninhabited as a result of restricted access to the property due to the wildfires.

(d) Any dwelling that qualified for an exemption under Section 218 prior to the commencement dates of the severe winter storms listed in the Governor's disaster proclamations of January 2010, that was damaged or destroyed by the severe rainstorms, heavy snows, floods, or mudslides that occurred as a result of these disasters in the Counties of Calaveras, Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Francisco, and Siskiyou, as declared by the Governor in January 2010, and that has not changed ownership since the commencement dates of these disasters as listed in the proclamations, shall not be disqualified as a "dwelling" or be denied an exemption under Section 218 solely on the basis that the dwelling was temporarily damaged or destroyed or was being reconstructed by the owner, or was temporarily uninhabited as a result of restricted access to the property due to floods, mudslides, rockslides, or washed-out or damaged roads.

(e) Any dwelling that qualified for an exemption under Section 218 prior to July 26, 2010, that was damaged or destroyed by the wildfires and any other related casualty that occurred as a result of the disaster in the County of Kern, as declared by the Governor in July 2010, and that has not changed ownership since July 26, 2010, shall not be disqualified as a "dwelling" or be denied an exemption under this section solely on the basis that the dwelling was temporarily damaged or destroyed or was being reconstructed by the owner, or was temporarily uninhabited as a result of restricted access to the property due to the wildfires.

(f) The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.

History.—Added by Stats. 2010, Ch. 447 (AB 1662), in effect September 29, 2010.

Note.—Section 7 of Stats. 2010, Ch. 447 (AB 1662), provided that it is the intent of the Legislature to provide in the annual Budget Act those additional reimbursements to local governments that, as a result of Section 4 of this act, are required by Section 25 of Article XIII of the California Constitution.

218.5. Homeowners' exemption; assessors to supply board with information. In order to assure the accuracy of the state's reimbursements for the homeowners' property tax exemption and to prevent duplications of the exemptions within the state and improper overlapping with other benefits provided by law, county assessors shall supply information from homeowners' property tax exemption claims and county records as is specified by written request of the board, and with the concurrence of the Controller, necessary to fully identify all homeowners' property tax exemption claims allowed by the assessors. The board may specify that the information include all or a part of the names and social security numbers of claimants and spouses and the identity and location of the dwelling to which the exemption applies. The information may be required in the form of data processing media or other media and in such format as is compatible with the recordkeeping processes of the counties and the auditing procedures of the state.

History.—Added by Stats. 1970, p. 542, in effect June 30, 1970. Stats. 1973, Ch. 208, p. 563, in effect July 11, 1973, eliminated subdivision letters former two paragraphs. In the remaining combined paragraph the objectives to be served by the assessors' sending information to the board were restated to be prevention of "duplications of the exemptions within the state and improper overlapping with other benefits provided by law" rather than prevention of duplication of exemptions "arising from the filing of claims in two or more counties by members of a single household", and added the sentence stating the kind of information the board may request.

Back to top


218.6. Homeowners' exemption; September 2010 San Mateo explosion and fire. (a) For purposes of this section, all of the following apply:

(1) "Owner" includes a person purchasing the dwelling under a contract of sale or who holds shares or membership in a cooperative housing corporation, which holding is a requisite to the exclusive right of occupancy of a dwelling.

(2) (A) "Dwelling" means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. A two-dwelling unit shall be considered as two separate single-family dwellings.

(B) "Dwelling" includes the following:

(i) A single-family dwelling occupied by an owner thereof as his or her principal place of residence on the lien date.

(ii) A multiple-dwelling unit occupied by an owner thereof on the lien date as his or her principal place of residence.

(iii) A condominium occupied by an owner thereof as his or her principal place of residence on the lien date.

(iv) Premises occupied by the owner of shares or a membership interest in a cooperative housing corporation, as defined in subdivision (i) of Section 61, as his or her principal place of residence on the lien date. Each exemption allowed pursuant to this subdivision shall be deducted from the total assessed valuation of the cooperative housing corporation. The exemption shall be taken into account in apportioning property taxes among owners of share or membership interests in the cooperative housing corporations so as to benefit those owners who qualify for the exemption.

(b) Any dwelling that qualified for an exemption under Section 218 prior to September 9, 2010, that was damaged or destroyed by the explosion and fire that occurred in the County of San Mateo, as declared by the Governor in September 2010, and that has not changed ownership since September 9, 2010, shall not be disqualified as a "dwelling" or be denied an exemption under this section solely on the basis that the dwelling was temporarily damaged or destroyed or was being reconstructed by the owner, or was temporarily uninhabited as a result of restricted access to the property due to the explosion and fire.

(c) The exemption provided for in subdivision (k) of Section 3 of Article XIII of the California Constitution shall first be applied to the building, structure, or other shelter and the excess, if any, shall be applied to any land on which it may be located.

History.—Added by Stats. 2010, Ch. 2, Sixth Extraordinary Session, (AB 11), in effect October 19, 2010.

Note.—Section 7 of Stats. 2010, Ch. 2 Sixth Extraordinary Session (AB 11) provided that it is the intent of the Legislature to provide in the annual Budget Act those additional reimbursements to local governments that, as a result of Section 4 of this act, are required by Section 25 of Article XIII of the California Constitution.

219. Business inventories and exemption. [Repealed by Stats. 1980, Ch. 411, in effect July 11, 1980, operative January 1, 1981.]

Construction.—The expanded exemption (Stats. 1974, Ch. 1441) applies only to business inventories escaping assessment in fiscal year 1975–76 and thereafter. Applying the expanded exemption to escaped assessments meeting the specified conditions which are entered on the 1975–76 tax roll and on tax rolls in ensuing years irrespective of the year of the escape would result in a gift of public funds in violation of Article XVI, Section 6 of the Constitution. California Computer Products, Inc. v. Orange County, 107 Cal.App.3d 731; General Dynamics Corporation v. San Diego County, 108 Cal.App.3d 132

219. Business inventories and exemption. For the 1980–81 fiscal year and fiscal years thereafter, business inventories are exempt from taxation and the assessor shall not assess business inventories.

History.—Added by Stats. 1980, Ch. 411, in effect July 11, 1980, operative January 1, 1981.

Construction.—Replacement spare parts that potentially rotated between the vendor's supply of spare parts and its customers' computer equipment did not qualify as business inventory. The replacement parts were not inventory intended for sale because customers paid no consideration and received any and all replacement parts at no additional cost and the vendor did not treat the pool of spare parts as inventory for income tax and accounting purposes. Amdahl Corp. v. County of Santa Clara, 16 Cal.App.4th 604.

Raw materials.—Cobalt 60 used by a taxpayer for the purpose of irradiating its customers' products did not come within the business inventory exemption. Although de minimis amounts of mass were lost and absorbed into the customers' products in the irradiating process, the cobalt 60 was not an item delivered as part of the provided service. Sterigenics International v. Orange County, 47 Cal.App.4th 1541.

Back to top


220. Aircraft being repaired. Any aircraft which is in California on the lien date solely for the purpose of being repaired, overhauled, modified, or serviced is exempt from personal property taxation. This exemption does not apply to aircraft normally based in California, or operated intrastate or interstate in and into California.

History.—Added by Stats. 1955, p. 1082, in effect September 7, 1955, Stats. 1966, p. 656 (First Extra Session), in effect October 6, 1966, substituted "lien date" for "first Monday in March."

220.5. Aircraft of historical significance. (a) Aircraft of historical significance shall be exempt from taxation.

(b) The exemption provided in subdivision (a) applies only if all of the following conditions are satisfied:

(1) The assessee is an individual owner who does not hold the aircraft primarily for purposes of sale.

(2) The assessee does not use the aircraft for commercial purposes or general transportation.

(3) The aircraft is available for display to the public at least 12 days during the 12-month period immediately preceding the lien date for the year for which the exemption is claimed. If the aircraft was first made available for public display less than 12 days prior to the lien date, the exemption may be granted if the claimant certifies in writing that the aircraft will be made available for public display at least 12 days during the 12-month period commencing with the first day the property was made available for public display. When applying for an exemption pursuant to this section, the claimant shall attach to that application a certificate of attendance from the event coordinator of the event at which the aircraft was displayed as required by this paragraph.

(c) When claiming an exemption pursuant to this section, the claimant shall provide all information required and answer all questions contained in an affidavit furnished by the assessor. The claimant shall sign the affidavit, under penalty of perjury. The assessor may require additional proof of the information or answers provided in the affidavit before allowing the exemption.

(d) For purposes of this section, "aircraft of historical significance" means any aircraft that is an original, restored, or replica of a heavier than air powered aircraft that is 35 years or older or any aircraft of a type or model of which there are fewer than five in number known to exist worldwide.

(e) A fee of thirty-five dollars ($35) shall be charged and collected by the assessor upon the initial application for an exemption pursuant to this section.

History.—Added by Stats. 1987, Ch. 267, in effect January 1, 1988. Stats. 2004, Ch. 200 (SB 1880), in effect January 1, 2005, substituted "the affidavit, under penalty of perjury" for "and swear to the accuracy of the contents of the affidavit before either a notary public or the assessor or his or her designee, at the claimant's option" after "claimant shall sign" in the second sentence of subdivision (c).

Note.—Section 2 of Stats. 1987, Ch. 267, provided that this act applies to the 1987–88 fiscal year and fiscal years thereafter. Sec. 3 thereof provided no payment by state to local agencies because of this act. Stats. 2003, Ch. 604 (SB 1059), in effect January 1, 2004, substituted "applies only" for "shall only apply" after "in subdivision (a)" in subdivision (b) and added the third sentence in paragraph (3) thereof, and substituted "that" for "which" after "aircraft" twice in subdivision (d).

Back to top


221. Nursery school. For the purposes of Section 214 a nursery school is any group facility for minors which has obtained a written license or permit to operate as such from the State Department of Social Services or from an inspection service approved or accredited by the State Department of Social Services, and which is owned and operated for one or more of the following purposes:

(a) The facility is owned and operated to provide day care for minors whose parent or parents are unable to supervise such minors due to the hours of employment of the parent or parents.

(b) The facility is owned and operated to provide training and education for minors of preschool age.

(c) The facility is owned and operated to provide instruction to parents on the subject of raising minors and to provide training and education for minors.

History.—Added by Stats. 1965, p. 2472, in effect September 17, 1965. Stats. 1978, Ch. 1112, in effect January 1, 1979, deleted the word "welfare" in the first paragraph and replaced it with the word "services".

222. Zoological society property. Personal property used exclusively in the operation of a zoo or for purposes of horticulture display on publicly owned land which is owned by a nonprofit zoological society meeting all the requirements of Section 214 shall be exempt from taxation.

History.—Added by Stats. 1973, Ch. 4, p. 4, in effect February 26, 1973, operative March 1, 1973. Sec. 3 thereof provided no payment by state to local government because of this act.

222.5. Possessory interests of zoological society. As used in Section 214, "property used exclusively for religious, hospital, scientific or charitable purposes" shall include possessory interests in publicly owned land, used exclusively for the operation of a zoo or for purposes of horticultural display by a zoological society meeting all the requirements of Section 214.

History.—Added by Stats. 1973, Ch. 72, p. 120, in effect May 31, 1973. Sec. 4 thereof provided no payment by state to local government because of this act.

223. Fruit and nut trees and grapevines. Fruit trees, nut trees, and grapevines of a grower, which are personal property, held on the lien date for subsequent planting in orchard or vineyard form and are planted during the assessment year by the grower shall be exempt from taxation. This section does not apply to plant nurseries.

History.—Added by Stats. 1967, p. 3106, in effect November 8, 1967. Stats. 1968, p. 548, in effect November 13, 1968, deleted "in storage" following "held" in the first sentence.

224. Personal effects and household furnishings. The personal effects, household furnishings, and pets of any person shall be exempt from taxation.

The phrase "personal effects, household furnishings, and pets" does not include boats, aircraft, vehicles, or personalty held or used in connection with a trade, profession or business or pets so held or used.

For purposes of this section, "pets" mean and include any animals held for noncommercial purposes and not as an investment.

History.—Added by Stats. 1968, p. 8 (First Extra Session), in effect September 23, 1968, operative March 1, 1969, Stats. 1969, p. 210, in effect May 20, 1969, revised the language of the first paragraph, substituting a reference to the amount of exemption allowed under the Constitution for a reference to $100 per householder, and deleted the former second paragraph. Stats. 1971, p. 2912, in effect March 4, 1972, operative for taxes for the 1972–73 fiscal year and thereafter, added the third paragraph concerning "pets". Stats. 1972, p. 4, in effect February 10, 1972, operative March 4, 1972, repealed Section 224 as amended by Stats. 1971, p. 2912. Stats. 1972, p. 4, in effect February 10, 1972, operative for taxes for the 1972–73 fiscal year and thereafter added Section 224, Stats. 1974. Ch. 311, p. 598, in effect January 1, 1975, deleted "in excess of the amount of any exemption allowed to the person on any property pursuant to Section 101/2 of Article XIII of the State Constitution" after "any person" in the first sentence of the first paragraph.

Note.—Stats. 1971, p. 2912, provided that the act shall be operative for taxes for the 1972–73 fiscal year and thereafter and that the act shall not be construed to prohibit local governments from licensing pets.

Ownership.—The statutory language does not restrict this exemption to householders as owners. Personal property consisting of household furnishings that are used in a common-use clubhouse and owned by a community association qualifies. Lake Forest Community Assn. v. Orange County, 86 Cal.App.3d 394.

Back to top


225. Personalty in transit. [Repealed by Stats. 1984, Ch. 678, in effect January 1, 1985.]

225. Trailers and semitrailers. (a) A trailer, semitrailer, logging dolly, pole or pipe dolly, or trailer bus, that has a valid identification plate issued to it pursuant to Section 5014.1 of the Vehicle Code, or any auxiliary dolly or tow dolly is exempt from personal property taxation.

(b) The exemption provided for in subdivision (a) does not apply to a logging dolly that is used exclusively off-highway.

History.—Added by Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000. Stats. 2001, Ch. 826 (AB 1472), in effect, January 1, 2002, designated the first sentence of the first paragraph as subdivision (a), and substituted "trailer, semitrailer, logging dolly, pole or pipe dolly, or trailer bus," for "trailer or semitrailer" after "A" and added ", or any auxiliary dolly or tow dolly" after "Code" therein; and added subdivision (b).

Note.—Section 1 of Stats. 2000, Ch. 861 (SB 2084) provided that:

(a) The Legislature finds and declares that it is necessary to convert California's system of commercial vehicle registration from an unladen weight system to a gross vehicle weight system and to initiate a permanent trailer identification program. Furthermore, it is the intent of the Legislature that this conversion be revenue neutral to all cities and counties and all unladen weight fee system recipients.

(b) For the purposes of this act, "revenue neutrality'' requires that all recipients of the fees collected under the system in effect on December 31, 2000, shall receive the same level of funding, with the same degree of flexibility, after the conversion to the system created by this act.

(c) This act shall be known, and may be cited as, the Commercial Vehicle Registration Act of 2001.

Note.—Section 1 of Stats. 2001, Ch. 826 (AB 1472) provided that:

(a) The Legislature finds and declares that it is necessary to convert California's system of commercial vehicle registration from an unladen weight system to a gross vehicle weight system and to initiate a permanent trailer identification program. Furthermore, it is the intent of the Legislature that this conversion be revenue neutral to all cities and counties and all unladen weight fee system recipients.

(b) For the purposes of this act, "revenue neutrality" requires that all recipients of the fees collected under the system in effect on December 31, 2001, shall receive the same level of funding, with the same degree of flexibility, after the conversion to the system created by this act.

225.1. Personalty in transit; claiming exemption. [Repealed by Stats. 1977, Ch. 246, in effect January 1, 1978.]

225.2. Personalty in transit; escape assessment procedures. [Repealed by Stats. 1984, Ch. 678, in effect January 1, 1985.]

225.3. Personalty in transit; escape assessment procedures; exception. [Repealed by Stats. 1984, Ch. 678, in effect January 1, 1985.]

Back to top


225.5. Educational TV and FM stations; defined. (a) For purposes of Section 214 an educational television station is any facility, which does not accept advertising for a consideration and which transmits television programs by wires, lines, radio waves, waveguides, coaxial cable, microwave transmitters or other electronic or mechanical means or any combination thereof, if the corporation, fund or foundation owning such station receives at least twenty-five (25) percent of its operating expenses by means of contributions from the general public or dues from members.

(b) For purposes of Section 214 a noncommercial educational FM broadcast station is any facility licensed and operating pursuant to subpart (C) (commencing with Section 73.501) of Part 73 of Title 47 of the Code of Federal Regulations.

History.—Added by Stats. 1966, p. 607 (First Extra Session), in effect October 6, 1966.

226. Imported goods; validity of assessment. [Repealed by Stats. 1984, Ch. 678, in effect January 1, 1985.]

226. Supercomputer exemption. (a) Personal property consisting of qualified computer equipment shall be exempt from taxation.

(b) For purposes of this section:

(1) "Qualified computer equipment" means all computer equipment of the San Diego Supercomputer Center located on the campus of the University of California, San Diego.

(2) "Computer equipment" includes, but is not limited to, any supercomputer and all peripheral computer and other equipment related to the system of which the supercomputer is the principal component and all other equipment that becomes a part of that supercomputer system.

History.—Added by Stats. 1988, Ch. 1559, in effect September 30, 1988.

Note.—Section 2 of Stats. 1988, Ch. 1559 provided that the Legislature finds and declares that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution. Sec. 3 thereof provided that this act would make a classification or exemption of property for purposes of ad valorem property taxation within the meaning of Section 2229. Sec. 4 thereof provided that this act shall be applicable to property taxes levied for the 1988–89 fiscal year and fiscal years thereafter.

Back to top


227. Documented vessel. [Repealed by Stats. 1978, Ch. 232, in effect January 1, 1980.]

227. Documented vessel. A documented vessel, as defined in Section 130, shall be assessed at 4 percent of its full cash value only if the vessel is engaged or employed exclusively in any of the following:

(a) In the taking and possession of fish or other living resource of the sea for commercial purposes.

(b) In instruction or research studies as an oceanographic vessel.

(c) In carrying or transporting seven or more people for hire for commercial passenger fishing purposes and holds a current certificate of inspection issued by the United States Coast Guard. A vessel shall not be deemed to be engaged or employed in activities other than the carrying or transporting of seven or more persons for hire for commercial passenger fishing purposes by reason of that vessel being used occasionally for dive, tour, or whale watching purposes. For purposes of this subdivision, "occasionally" means 15 percent or less of the total operating time logged for the immediately preceding assessment year.

History.—Added by Stats. 1974, Ch. 1467, p. 3207, in effect January 1, 1975, operative March 3, 1979. Stats. 1978, Ch. 232, deleted "March 3, 1979" and added "January 2, 1980, unless a later enacted statute which is chaptered before January 1, 1980, deletes or extends such date." Stats. 1980, Ch. 18, in effect February 29, 1980, added subdivision (c) and substituted a new second paragraph to extend the effective date to January 1, 1983, Stats. 1980, Ch. 1208, in effect January 1, 1981, substituted "4 percent" for "1 percent" after "assessed" in the first sentence. Stats. 1981, Ch. 475, in effect September 14, 1981, deleted "or" after "purposes" in subdivision (a), added "or" after "vessel" in subdivision (b), added the balance of the sentence after "purposes" in subdivision (c), and substituted a new second paragraph. Stats. 1986, Ch. 608, effective January 1, 1987, added "in either of the following" after "exclusively" in the first paragraph; substituted "." for ";" at the end of subsections (a) and (b); and deleted "State" before "Controller" and deleted "pursuant to subdivision (a) of Section 16113 of the Government Code" after "reimbursement" in the second paragraph. Stats. 1994, Ch. 940, in effect January 1, 1995, substituted "any" for "either" in the first sentence; but operative July 1, 1995, added second sentence in subdivision (c) and substituted "comply with" for "are valid with respect to" after "claims" in the second paragraph of subdivision (c). Stats. 2000, Ch. 647 (SB 2170), in effect January 1, 2001, deleted the former second paragraph which provided that "The Controller shall audit all claims for reimbursement to determine whether those claims comply with the requirements of this section."

Note.—Section 7 of Stats. 1974, p. 3207, provided that the Legislative analyst is to report to the Legislature on or before November 15, 1978, on the effect of the section on the change in the number of vessels, the change in the size of vessels, changes in the port of documentation of vessels, and the identification of any other changes in the commercial fishing and sportfishing industries attributable to the changes made by the section.

Decisions Under Former Section 227, Documented Vessel.

Construction.—Vessels under construction on the lien date and not subject to documentation until completion are not eligible for preferential assessment notwithstanding their intended use. Favalora v. Humboldt County, 55 Cal.App.3d 969.

Requirement that port of documentation be in California held invalid.—Provision that only California documented vessels be taxed at the reduced rate violated the right of owners of vessels documented in other states to equal protection of the laws guaranteed under the Federal Constitution and is therefore invalid. The balance of the statute was upheld on the basis that to do so best served the legislative intent. Haman et al. v. Humboldt County, 8 Cal.3d 922.

Back to top


228. Vessels with market value of $400 or less. (a) A vessel with a market value of four hundred dollars ($400) or less shall be free from taxation. This section shall only apply to vessels used or held for noncommercial purposes and shall not apply to lifeboats or other vessels used in conjunction with operations of vessels with a market value of more than four hundred dollars ($400). This section shall not apply to more than one vessel owned, claimed, possessed, or controlled by an assessee on the lien date.

(b) For purposes of this section, "vessel" includes every description of watercraft used or capable of being used as a means of transportation on water, except vessels described in paragraphs (1) and (2) of subdivision (c) of Section 651 of the Harbors and Navigation Code.

(c) For purposes of this section, "vessel" includes all equipment, including mode of power, and furnishings that are normally required aboard the vessel during the accomplishment of the functions for which the vessel is being utilized.

History.—Added by Stats. 1973, Ch. 3, p. 3, in effect February 26, 1973, operative March 1, 1973. Sec. 5 thereof provided no payment by state to local government because of this act. Stats. 1983, Ch. 1281, in effect September 30, 1983, deleted "shall not apply to any vessel on which an exemption is claimed under Section 210 and" after "section" in the third sentence of subdivision (a).

229. Floating home. (a) A floating home shall be assessed in the same manner as real property.

(b) For purposes of determining the valuation of floating homes pursuant to this section, the procedures set forth in Section 110.1 shall apply, except that:

(1) The 1979 lien date shall be substituted for the 1975 lien date.

(2) The 1979–80 assessment roll shall be substituted for the 1975–76 assessment roll.

(3) The date January 1, 1983, shall be substituted for the dates June 30, 1980, and June 30, 1981.

(c) "Floating home" means a floating structure which is all of the following:

(1) It is designed and built to be used, or is modified to be used, as a stationary waterborne residential dwelling.

(2) It has no mode of power of its own.

(3) It is dependent for utilities upon a continuous utility linkage to a source originating on shore.

(4) It has a permanent continuous hookup to a shoreside sewage system.

"Floating home" does not include a vessel. This section does not affect existing law regarding residential use of tide and submerged lands.

History.—Added by stats. 1982, Ch. 44, in effect February 17, 1982. Stats. 1985, Ch. 1467, effective October 2, 1985, restructured subdivision (c), substituted " "Floating home" means" for "a floating home is defined as", added "is all of the following:" after "which," added "(1) It" before "is designed," added ", or is modified to be used," after "built to be used", substituted a period for "; which" after "dwelling", added "(2) It" before "has no mode", substituted a period for "and is designed not to have such mode of power; which", added "(3) It" before "is dependent", substituted a period for "; and which", added "(4) It" before "has a permanent", substituted " 'Floating home' " for "A floating home" in the former second sentence now the first sentence of the fourth paragraph; and added the second sentence of the fourth paragraph.

Note.—Section 2 of Stats. 1982, Ch. 44, provided that notwithstanding Section 2229, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it under this act. Sec. 3 thereof provided that the act shall be operative with respect to the 1982–83 fiscal year and fiscal years thereafter.

Back to top


230. Historical wooden vessels. (a) With regard to taxes that attach as a lien on or after January 1, 2001, wooden vessels of historical significance, and all personal property thereon used in their operation, are exempt from taxation. This exemption applies if all of the following conditions are satisfied:

(1) The owner and operator is a nonprofit organization that has qualified for exemption under either Section 23701d of this code or under Section 501(c)(3) of the Internal Revenue Code.

(2) No part of the net earnings of the owner inures to the benefit of any private shareholder or individual.

(3) The vessel is used primarily as, or as a part of, a maritime museum that is regularly open to the public.

(4) Income from fundraising use and use for charter activities does not exceed 40 percent of operating revenues of the vessel, and all net earnings are used to further the exempt activity of the museum.

(b) When claiming an exemption pursuant to this section, a claiming organization shall give all information required and answer all questions in an affidavit, to be furnished by the assessor, that is signed by the claimant under penalty of perjury. The assessor may require other proof of the facts stated in the affidavit before allowing the exemption. A claimant for an exemption pursuant to this section is subject to Sections 255 and 260.

(c) For purposes of this section, the following definitions apply:

(1) "Wooden vessel of historical significance" means any wooden vessel that is a refurbished original, wooden inland waters vessel of 47 feet or larger, built in California during or prior to 1910, that continuously thereafter has remained in California waters, and that has been designated a California State Historical Landmark.

(2) "Regularly open to the public" means that the museum was open to the public not less than 20 hours per week for not less than 35 weeks of the 12-month period immediately preceding the lien date for the year for which the exemption is claimed.

History.—Added by Stats. 2000, Ch. 601 (AB 659), in effect September 24, 2000.

Note.—Section 4 of Stats. 2000, Ch. 601 provided that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

231. Property leased to government. (a) Property that is owned by a nonprofit corporation and leased to, and used exclusively by, government for its interest and benefit shall be exempt from taxation within the meaning of "charitable purposes" in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution if:

(1) All of the provisions of Section 214 are complied with, except paragraph (6) of subdivision (a). For purposes of paragraph (6) of subdivision (a) of Section 214, irrevocable dedication to charitable purpose shall be deemed to exist if the lease provides that the property shall be transferred in fee to the entity of government leasing the same upon the sooner of either the liquidation, dissolution, or abandonment of the owner or at the time the last rental payment is made under the provisions of the lease.

(2) All of the provisions of Section 254.5 relating to owners are complied with, commencing during calendar year 1969.

(3) All of the provisions of Section 214.01 are complied with by March 15, 1970.

(b) As used in this section "property" means:

(1) Any building or structure of a kind or nature which is uniquely of a governmental character and includes, but is not limited to, the following:

(A) City halls.

(B) Courthouses.

(C) Administration buildings.

(D) Police stations, jails, or detention facilities.

(E) Fire stations.

(F) Parks, playgrounds, or golf courses.

(G) Hospitals.

(H) Water systems and waste water facilities.

(I) Toll bridges.

(2) Any other property required for the use and occupation of the buildings and leased to government.

(3) Any possessory interest of the nonprofit corporation in property and in the land upon which the property was constructed and so much of the surrounding land that is required for the use and occupation of the property.

(4) Any building and its equipment in the course of construction on or after the first Monday of March, 1954, together with the land on which it is located as may be required for the use and occupation of the building when the building and equipment is being constructed for the sole purpose of being leased to government to lessen its burden.

"Uniquely of a governmental character" means the property, except hospitals, water systems, waste water facilities, golf courses, and toll bridges, is not intended to produce income or revenue in the form of rents or admission, user or service fees, or charges.

(c) As used in this section "property" does not include any possessory interest of any person or organization not exempt from taxation.

(d) As used in this section "nonprofit corporation" means a community chest, fund, foundation or corporation, not conducted for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual and that nonprofit corporation is organized and operated for the sole purpose of leasing property to government and to lessen the burden of government and, in fact, only leases property to government. That nonprofit corporation shall qualify as an exempt organization either under Section 23701f or 23701u of this code or Section 501(c)(4) of the Internal Revenue Code of 1986. This subdivision is not intended to enlarge the "welfare exemption" to apply to organizations qualified under Section 501(c)(4) of the Internal Revenue Code of 1986 but not otherwise qualified for the "welfare exemption" under this section. Nonprofit corporations that meet the tests of this subdivision are deemed to be organized and operated for charitable purposes.

(e) As used in this section "government" means the State of California, a city, city and county, county, public corporation, and a hospital district.

(f) The exemption provided for in this section shall be deemed to be within the "welfare exemption" for purposes of Section 251.

(g) For leases first entered into by and between government and a nonprofit corporation on or after January 1, 1969, all requirements of this section shall be met for the property and the nonprofit corporation to qualify for the exemption provided by this section.

(h) For leases first entered into by and between government and a nonprofit corporation on or before December 31, 1968, all requirements of this section shall be met except that the last unnumbered paragraph of subdivision (b) shall not apply and for the purposes of subdivision (b)(1) the list of real property qualifying for this exemption includes community recreation buildings or facilities, golf courses, airports, water, sewer and drainage facilities, music centers and their related facilities, and public parking incidental to and in connection with one of the buildings or structures set forth in this section.

(i) Property exempt under this section shall be located within the boundaries of the entity of government leasing the same.

(j) Where the construction has commenced on or after January 1, 1969, improvements shall be advertised and put to competitive bid to qualify for the exemption provided by this section.

(k) For purposes of subdivision (d), a nonprofit corporation shall not be deemed to be qualified as an exempt organization unless the organization files with the assessor a valid organizational clearance certificate issued pursuant to Section 254.6.

History.—Added by Stats. 1968, p. 2823, in effect November 13, 1968. Stats. 1974, Ch. 452, p. 1066, in effect July 11, 1974, added (G) to subdivision (b)(1), and added ", except hospitals," after "property" in the first sentence of the second paragraph of subdivision (b)(4); and added ", and a hospital district" after "county" in the first sentence of subdivision (e). Sec. 3 thereof provided no payment by state to local governments because of this act. Stats. 1974, Ch. 896, p. 1897, in effect January 1, 1975, substituted "Subdivision (b) of Section 4 and Section 5" for "Section 1c" in the first sentence of subdivision (a). Stats. 1977, Ch. 1004, in effect September 23, 1977, added subparagraph "H" to paragraph 1 of subdivision (b). Also added "water systems, and waste water facilities," in paragraph 4 of subdivision (b) and added "public corporation" to subdivision (e). Stats. 1982, Ch. 1465, in effect January 1, 1983, added subparagraph "I" to paragraph (1) of subdivision (b), and added "and toll bridges" after "facilities" in the fifth paragraph thereof. Stats. 1986, Ch. 1457, effective January 1, 1987, added "either" after "exempt organization" and substituted "f" for "F" after "Section 23701" in the second sentence of subdivision (d); and added subdivision (k). Stats. 1987, Ch. 498, in effect January 1, 1988, inserted "California" before "Constitution" and deleted "of the State of California" after "Constitution" in the first sentence of subdivision (a); substituted "paragraph (6) of subdivision (a)" for "subdivision (6)" after "except" in the first sentence and after "of" in the second sentence of subdivision (a)(1); and substituted "that" for "such" in the first sentence, substituted "That" for "Such" and substituted "1986" for "1954" after "Code of" in the second sentence, and substituted "1986" for "1954" after "Code of" in the third sentence of subdivision (d). Stats. 1988, Ch. 571 in effect August 26, 1988 added "or 23701u" after "section 23701f" in the second sentence of subdivision (d). Stats. 1990, Ch. 489, in effect January 1, 1991, inserted a comma after "Parks" and added ", or golf courses" after "playgrounds" in subparagraph (F) of paragraph (1) and added ", golf courses," after "water facilities" in the second paragraph of paragraph (4) of subdivision (b). Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, substituted "that" for "which" after "Property" in the first sentence of the first paragraph of subdivision (a); substituted "the" for "such" after "the building when" in the first sentence of paragraph (4) of subdivision (b); substituted "that meet" for "meeting" after "Nonprofit corporations" in the fourth sentence of subdivision (d); added "a" before "nonprofit corporation" twice in the first sentences of subdivisions (g) and (h); and substituted "a valid organizational clearance certificate issued pursuant to Section 254.6" for "duplicate copies of a valid, unrevoked letter or ruling from either the Franchise Tax Board or, in the alternative, the Internal Revenue Service, which states that the organization qualifies as an exempt organization under the appropriate provisions of the Bank and Corporation Tax Law or the Internal Revenue Code" after "with the assessor" in the first sentence of subdivision (k).

Note.—Section 2 of Stats. 1974, Ch. 452, p. 1067, provided that section shall apply to exemptions for fiscal year 1973–74 and fiscal years thereafter. A hospital for which a claim for exemption for fiscal year 1973–74 is not timely filed may have an exemption filed on its behalf for such year under Article 2.5 (commencing with Section 270) of Chapter 1 of Part 2 of Division 1 hereof.

Note.—Section 5 of Stats. 1988, Ch. 571, provided that legislation adding Section 23701u of the Revenue and Taxation Code in the 1987 portion of the 1987–88 session of the Legislature inadvertently omitted the amendment of Section 231 to incorporate the reference to Section 231. The amendment of Section 231 by Section 3 of this act corrects that inadvertent omission, and does not constitute a change in, but is declaratory of, existing law. Sec. 7 thereof provided that no reimbursement shall be made from the State Mandates Claims Fund.

Back to top


232. Cargo containers. All cargo containers principally used for the transportation of cargo by vessels in ocean commerce shall be exempt from property taxation.

Any tax exemption created by this section shall not apply to a cargo-carrying vehicle subject to the registration provisions of Section 4000 of the Vehicle Code.

The term "container" means a receptacle.

(a) Of a permanent character and accordingly strong enough to be suitable for repeated use;

(b) Specially designed to facilitate the carriage of goods, by one or more modes of transport, one of which shall be by vessels, without intermediate reloading;

(c) Fitted with devices permitting its ready handling, particularly its transfer from one mode of transport to another;

(d) So designed to be easy to fill and empty; and

(e) Having a cubic displacement of 1,000 cubic feet or more.

History.—Added by Stats. 1974, Ch. 1405, p. 3079, in effect January 1, 1975, operative from the lien date in 1975 to the lien date in 1978, inclusive, and after that date shall have no further force or effect. Stats. 1979, Ch. 5, in effect February 28, 1979, extended operative date to the lien date in 1980. Stats. 1980, Ch. 1115, in effect January 1, 1981, made the exemption permanent.

Note.—Section 2 of Stats. 1974, Ch. 1405, p. 3079, provided that the Legislative Analyst shall report to the Legislature on or before December 31, 1977, on the net revenue effect of the act, which shall include, but not be limited to, the change in economic activity, change of employment, and sales to and by the maritime industry and businesses serving the maritime industry, including any multiplier effect, and the increase in tax revenue due to such activity. Sec. 3 thereof provided for state reimbursement for revenue lost. Stats. 1979, Ch. 5, in effect February 28, 1979, provided that the Legislative Analyst shall report to the Legislature on or before July 1, 1983; that the report shall also include an analysis of the impact of the change in economic activity, etc., on a county-by-county or regional basis, to the extent practicable; and that the report shall contain a recommendation of renewal or repeal of the exemption. Section 1 of Stats. 1980, Ch. 1115, relieved the Legislative Analyst of his obligation to report to the Legislature.

233. Goods imported in containers. [Repealed by Stats. 1984, Ch. 678, in effect January 1, 1985.]

234. Seed potatoes. Seed potatoes of a grower, which are personal property, held on the lien date for subsequent planting in field form and planted during the assessment year by the grower shall be exempt from taxation. This section does not apply to plant nurseries.

History.—Added by Stats. 1974, Ch. 14, p. 25, in effect February 7, 1974, operative March 1, 1974. Sec. 2 thereof provided no payment by state to local governments because of this act. Stats. 1981, Ch. 714, in effect January 1, 1982, renumbered the section which was formerly numbered 232.

235. Tangible personal property leased by a bank or financial corporation. For the purposes of this division, the lessee of tangible personal property owned by a bank or financial corporation shall be conclusively presumed the owner of that property.

History.—Added by Stats. 1986, Ch. 1457, effective January 1, 1987.

Back to top


236. Exemption; leases for rental housing. Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.

Low- and moderate-income has the same meaning as the term "persons and families of low- and moderate-income" as defined by Section 50093 of the Health and Safety Code.

History.—Added by Stats. 1988, Ch. 1296, in effect January 1, 1989.

Note.—Section 2 of Stats. 1988, Ch. 1296, provided that notwithstanding Section 2229, the requirements of that section relating to any exemption of property for more than five years or for more than 75 percent of the value thereof shall not apply to the exemption made by this act. Sec. 3 thereof provided that this act shall be applicable to property taxes levied for the 1989–90 fiscal year and fiscal years thereafter.

236.5. Exemption; leases for public parks. Any otherwise taxable interest in real property, leased for an original term of 35 years or more and used exclusively by the lessee for the operation of a public park that is uniquely of a governmental character, as described in paragraph (4) of subdivision (b) of Section 231, is, during the term of the lease, within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution, if all of the following conditions are met:

(a) The lessee is a charitable foundation that has received a determination that it is a charitable organization as described in Section 501(c)(3) of the Internal Revenue Code.

(b) The operation of the public park by the lessee is within the tax exempt purposes of the lessee.

(c) The lessee acquired the leasehold in the property by means of a charitable donation.

(d) Under the terms of the lease, the lessee will acquire the entire ownership interest in the property on or before the end of the lease term.

History.—Added by Stats. 2001, Ch. 609 (SB 882), in effect October 9, 2001.

Note.—Section 2 of Stats. 2001, Ch. 609 (SB 882) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Back to top


237. Exemption; Indian Tribal-owned low-income rental housing. (a) (1) Subject to the requirements set forth in paragraph (2), there is exempt from taxation under this part that portion of the assessed value of property, owned and operated by a federally recognized Indian tribe or its tribally designated housing entity, that corresponds to that portion of the property that is continuously available to, or occupied by, lower income households, as defined in Section 50079.5 of the Health and Safety Code or applicable federal, state, or local financing agreements, at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or rents that do not exceed those prescribed by the terms of the applicable federal, state, or local financing agreements or financial assistance agreements.

(2) The exemption set forth in subdivision (a) applies only if the property and entity meet the following requirements:

(A) At least 30 percent of the property's housing units are either continuously available to, or occupied by, lower income households, as defined in Section 50079.5 of the Health and Safety Code or applicable federal, state, or local financing agreements, at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or rents that do not exceed those prescribed by the terms of the applicable federal, state, or local financing agreements or financial assistance agreements.

(B) The housing entity is nonprofit.

(C) No part of the net earnings of the housing entity inure to the benefit of any private shareholder or individual.

(b) In lieu of the tax imposed by this part, a tribe or tribally designated housing entity may agree to make payments to a county, city, city and county, or political subdivision of the state for services, improvements, or facilities provided by that entity for the benefit of a low-income housing project owned and operated by the tribe or tribally designated housing entity. Any payments in lieu of tax may not exceed the estimated cost to the city, county, city and county, or political subdivision of the state of the services, improvements, or facilities to be provided.

(c) A tribe or tribally designated housing entity applying for an exemption under this section shall provide the following documents to the assessor:

(1) Documents establishing that the designating tribe is federally recognized.

(2) Documents establishing that the housing entity has been designated by the tribe.

(3) Documents establishing that there is a deed restriction, agreement, or other legally binding document requiring that the property be used in compliance with subparagraph (A) of paragraph (2) of subdivision (a).

(d) This exemption shall be known as the "tribal housing exemption."

History.—Added by Stats. 1999, Ch. 941 (SB 1231), in effect January 1, 2000. Stats. 2000, Ch. 601 (AB 659), in effect September 24, 2000, added paragraph designation (1) to the former first sentence of subdivision (a), substituted "Subject to the requirements . . . assessed value of property," for "Property" before "owned and operated", and substituted ", that corresponds . . . assistance agreements" for "is not subject to taxation under this part" after "housing entity" therein; created new paragraph (2) by adding "The exemption set forth in subdivision (a) applies only" to the balance of the former first sentence commencing with "if the property", designated former paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, of new paragraph (2) of subdivision (a), and substituted "At least 30 percent . . . assistance agreements." for the former first sentence of former paragraph (1) which provided that "The property is used exclusively and solely for the charitable purpose of providing rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code)." therein; deleted "providing" after "state for", and added "provided" after "facilities" in the first sentence of subdivision (b); and substituted "requiring that the property be used in compliance with subparagraph (A) of paragraph (2) of subdivision (a)." for "restricting the property's use to low-income housing and that provides that the property's housing units are continuously available to or occupied by persons who are low income, as defined by Section 50093 of the Health and Safety Code, at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or, to the extent that the terms of federal, state, or local financing or financial assistance conflict with that section, rents that do not exceed those prescribed by the terms of the financing agreements or financial assistance agreements." after "binding document" in the first sentence of paragraph (3) of subdivision (c). Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, substituted "recognized" for "designated" after "by a federally", added "or applicable federal, state, or local financing agreements," after "Health and Safety Code", deleted ", to the extent that the terms of federal, state, or local financing or financial assistance conflict with that section," after "Health and Safety Code, or", and added "applicable federal, state, or local" after "terms of the" in the first sentence of paragraph (1), and added "or applicable federal, state, or local financing agreements" after "Health and Safety Code", deleted ", or to the extent that the terms of federal, state, or local financing or financial assistance conflict with that section," after the "Health and Safety Code, or", and added "applicable federal, state, or local" after "terms of the" in the first sentence of subparagraph (A) of paragraph (2) of subdivision (a); and added subdivision (d).

Note.—Section 41 of Stats. 1999, Ch. 941 (SB 1231) provided that notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.

Note.—Section 4 of Stats. 2000, Ch. 601 (AB 659) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Back to top


241. Employee-owned hand tools. (a) The first fifty thousand dollars ($50,000) of personal property that consists of hand tools owned and supplied by an employee that are required as a condition of that employee's employment are exempt from taxation.

(b) For purposes of this section:

(1) "Hand tools" means hand-held implements and equipment, including hand-held power tools, of which any one may be transported to and from the workplace and which are necessary for the ordinary and regular performance of the employee's work, and also means the appropriate storage containers used to store those implements and that equipment.

(2) "Hand tools owned and supplied by an employee" means only those hand tools that are either owned by the employee prior to the employment or acquired and paid for by the employee during the employment, that the employee will continue to own after termination of the employment.

(3) "Employee" means any individual who is employed by an employer that directly or indirectly supervises that person and exercises control over the wages and working conditions of individual workers. "Employee" does not include a self-employed individual or an independent contractor.

History.—Added by Stats. 1994, Ch. 527, in effect September 12, 1994. Stats. 2001, Ch. 161 (AB 136), in effect August 9, 2001, substituted "fifty" for "twenty" after "The first" and substituted "($50,000)" for "($20,000)" after "dollars" in the first sentence of subdivision (a).

Note.—Section 2 of Stats. 2001, Ch. 161 (AB 136), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Back to top


Article 2. Procedure to Claim Exemptions

251. Authority to prescribe. (a) The board shall prescribe all procedures and forms required to carry into effect any property tax exemption enacted by statute or constitutional amendment.

(b) (1) The procedures prescribed pursuant to subdivision (a) shall be deemed satisfied by a qualified lessor by submission to the assessor within 120 days of the commencement date of the lease, or 120 days after the effective date of the act adding this subdivision to this section with respect to any existing lease, whichever is later, information which may be requested by the board with respect to the lease.

(2) For purposes of this subdivision, "a qualified lessor" is a lessor under a contract designated as a lease between that lessor and an entity using property which qualifies for the property tax exemption provided for by subdivision (d) or (e) of Section 3 of Article XIII of the California Constitution under which the lessee has the option at the end of the lease term of acquiring the property described in the lease for one dollar ($1), or any other nominal sum.

(3) No filing or application for exemption shall thereafter be required by a qualified lessor with respect to that lease unless the option terms of the lease change.

History.—Stats. 1945, p. 707, in effect September 15, 1945, added the word "welfare." Stats. 1965, p. 4280, in effect September 17, 1965, added "immature forest trees." Stats. 1966, p. 657 (First Extra Session), in effect October 6, 1966, first operative for the 1967–68 assessment year, added "cemetery" and "fruit and nut trees and vines, and." Stats. 1967, p. 17, in effect March 6, 1967, eliminated "fruit and nut trees and vines." Stats. 1968, p. 618, in effect November 13, 1968, substituted "procedure" for "procedures" and "veterans' " for "veteran's". Stats. 1968, p. 9 (First Extra Session), in effect September 23, 1968, operative March 1, 1969, added "homeowners' ". Stats. 1972, p. 194, in effect March 7, 1973, operative on the lien date in 1973, added "veterans' organization". Stats. 1974, Ch. 311, p. 602, in effect January 1, 1975, deleted "orphanage," after "cemetery,", and added ", free public libraries, free museums, public schools" after "welfare". Stats. 1977, Ch. 246, in effect January 1, 1978, deleted "and" between "schools" and "homeowners' " and added "and transshipment". Stats. 1978, Ch. 1112, in effect January 1, 1979, deleted the words "immature forest trees". Stats. 1981, Ch. 542, in effect January 1, 1982, added "religious" after "exhibition". Stats. 1987, Ch. 703, in effect January 1, 1988, added "(a)" before the first paragraph and added subdivision (b). Stats. 1988, Ch. 1271, in effect September 26, 1988, substituted "any property tax exemption enacted by statute or constitutional amendment." for specified exemptions after "effect" in subdivision (a).

252. Veterans' exemption. When making the first claim any person claiming the veterans' exemption, or the spouse, legal guardian, or conservator of such person, or one who has been granted a power of attorney by such person, shall appear before the assessor, shall give all information required and answer all questions in an affidavit prescribed by the State Board of Equalization, and shall subscribe and swear to the affidavit before the assessor. The assessor may require other proof of the facts stated before allowing the exemption. In subsequent years the person claiming the veterans' exemption, or the spouse, legal guardian, or conservator of such person, or one who has been granted a power of attorney by such person, may file the affidavit under penalty of perjury by mail.

Where a claim is filed by a legal guardian or conservator of a person claiming the veterans' exemption, or one who has been granted a power of attorney by such claimant, the person filing the affidavit shall declare that he has sufficient knowledge of the financial affairs of the claimant to give all information required and answer all questions in the affidavit under penalty of perjury.

History.—Stats. 1941, p. 409, operative February 1, 1941, substituted "Any person claiming" for "Every person applying for" at beginning of section. Stats. 1949, p. 27, in effect February 3, 1949, added "or the spouse of such person" in the first sentence. Stats. 1951, p. 2378, added provisions limiting requirement of personal appearance to the first claim, and authorizing mailing of affidavits in subsequent years. Stats. 1966, p. 657 (First Extra Session), in effect October 6, 1966, first operative for the 1967–68 assessment year, added "prescribed by the State Board of Equalization" and "under penalty of perjury", and deleted "on such forms as the assessor shall require" following "by mail." Stats. 1969, p. 387, in effect November 10, 1969, added the references to legal guardian, conservator or persons granted a power of attorney, in the first paragraph, and added the second paragraph.

Back to top


252.1. Veterans' exemption; transmittal of duplicate. Among other facts, the veterans' exemption affidavit shall contain a statement, showing the claimant's residence. When the affidavit is filed in county other than the county of the claimant's residence, it shall be filed in duplicate and the assessor shall transmit the duplicate copy to the assessor of the county of residence.

History.—Added by Stats. 1943, p. 1988, in effect August 4, 1943. Stats. 1974, Ch. 1107, p. 2368, in effect September 23, 1974, operative with respect to the 1974–75 fiscal year and thereafter renumbered the section which was formerly numbered 255.5, and substituted "the veterans' exemption affidavit" for "the affidavit" in the first sentence.

253. Veterans' exemption; making affidavit. If, because of active military service of the United States in time of war, sickness or other cause found to be unavoidable in the judgment of the assessor, an applicant for the veterans' exemption is unable to attend in person before the assessor, and no deputy is available to go to the place where he is located, then the applicant may make and subscribe the affidavit before any person authorized to administer an oath. If, during time of war, the applicant is in active military service of the United States or of any nation with which the United States is allied, or is outside of the continental limits of the United States, or if the person entitled to the exemption is insane or mentally incompetent, a member of his immediate family, his guardian, or legal representative, having personal knowledge of the facts required to be set forth, may appear before the assessor and may make and subscribe the affidavit on his behalf.

History.—Stats. 1943, p. 2540, in effect May 26, 1943, added material relating to veterans in active military service.

253.5. Homeowners' exemption. Any person claiming the homeowners' property tax exemption shall submit to the assessor an affidavit, giving any information required by the board. Such information shall include, but shall not be limited to, the name of the person claiming the exemption, the address of the property, and a statement to the effect that the claimant owned and occupied the property as his principal place of residence on the lien date, or that he owns and intends to occupy the property as his principal place of residence on the next succeeding lien date.

A claim for the homeowners' exemption filed by the owner of a dwelling, as defined in Section 218, once granted for the 1974–75 fiscal year or any fiscal year thereafter, shall remain in effect until such time as title to the property changes, the owner does not occupy the home as his principal place of residence on the lien date, or the property is otherwise ineligible pursuant to the provisions of Section 218.

If the exemption is lost by the owner of the property for any reason, he may file a new claim in the same manner as a new owner may file one.

History.—Added by Stats. 1974, Ch. 60, p. 129, in effect March 12, 1974. Stats. 1974, Ch. 1107, p. 2366, in effect September 23, 1974, operative with respect to the 1974–75 fiscal year and thereafter, substituted "submit to the assessor" for "make a return of the property to the assessor, the same as property is listed for taxation, and shall accompany it by" in the first sentence, and substituted "he owns and intends to" for "he intends to own and" in the second sentence of the first paragraph; and added the second and third paragraphs.

Back to top


253.10. Transshipment exemption. [Repealed by Stats. 1984, Ch. 678, in effect January 1, 1985.]

254. Other exemptions. Any person claiming the church, cemetery, college, exhibition, welfare, veterans' organization, free public libraries, free museums, aircraft of historical significance, tribal housing, or public schools property tax exemption and anyone claiming the classification of a vessel as a documented vessel eligible for assessment under Section 227, shall submit to the assessor annually an affidavit, giving any information required by the board.

History.—Stats. 1945, p. 707, in effect September 15, 1945, added the word "welfare." Stats. 1965, p. 4280, in effect September 17, 1965, added the second paragraph. Stats. 1967, p. 2195, in effect November 8, 1967, added "cemetery." Stats. 1968, p. 9 (First Extra Session), in effect September 23, 1968, operative March 1, 1969, added the homeowner's exemption to the first paragraph and all of the third paragraph. Stats. 1969, p. 1939, in effect November 10, 1969, added the fourth paragraph relating to documented vessels. Stats. 1970, p. 766, in effect November 23, 1970, substituted "a filing once made . . . originally claimed as exempt." for "each owner or new owner of timber need file only when making his original claim for exemption." in the first sentence of the second paragraph. Stats. 1972, p. 194, in effect March 7, 1973, operative on the lien date in 1973, added "veterans' organization" to the first paragraph. Stats. 1974, Ch. 1107, p. 2366, in effect September 23, 1974, operative with respect to the 1974–75 fiscal year and thereafter, substituted "free public libraries, free museums, or public schools" for "or homeowner's", and substituted "and anyone claiming the classification of a vessel as a documented vessel eligible for assessment under Section 227, shall submit to the assessor annually" for "shall make a return of the property to the assessor annually, the same as property is listed for taxation, and shall accompany it by" in the first sentence of the first paragraph; and deleted the former third paragraph relating to information to be furnished; and deleted the former fourth paragraph relating to persons claiming the classifications of vessels as documented vessels eligible for assessment under Section 227. Stats. 1974, Ch. 1107, p. 2366, in effect November 5, 1974, operative with respect to the 1974–75 fiscal year and thereafter, deleted "orphanage," after "cemetery," in the first sentence of the first paragraph. Stats. 1978, Ch. 1112, in effect January 1, 1978, deleted the last paragraph of the section which provided "any person claiming the immature forest trees exemption shall meet the requirements mentioned above except that a filing once made shall continue in effect until such time as there is a change in the exterior boundary of the property originally claimed as exempt." Stats. 1988, Ch. 1271, in effect September 26, 1988, added "aircraft of historical significance," after "museums,". Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, added "tribal housing," after "significance," in the first sentence.

Mandamus.—Mandamus was a proper procedure to compel a county tax assessor to permit inspection by a taxpayer of an affidavit or declaration of exemption submitted by a claimant and the assessor's records showing his ruling thereon; preliminary pursuance of any administrative procedure was unnecessary. Gallagher v. Boller, 231 Cal.App.2d 482.

254.2. Federal property used for protection of migratory birds. All property owned by the United States or any agency thereof and used exclusively for migratory water fowl refuges, or used for the promotion or protection of migratory water fowl or for migratory water fowl public shooting grounds is exempt from taxation. No affidavit need be filed for this exemption.

History.—Added by Stats. 1947, p. 1701, in effect September 19, 1947.

Back to top


254.5. Welfare exemption; assessor duties. (a) Claims for the welfare exemption and the veterans' organization exemption shall be filed on or before February 15 of each year with the assessor.

The assessor may not approve a property tax exemption claim until the claimant has been issued a valid organizational clearance certificate pursuant to Section 254.6. Financial statements shall be submitted only if requested in writing by the assessor.

(b) (1) The assessor shall review all claims for the welfare exemption to ascertain whether the property on which the exemption is claimed meets the requirements of Section 214. The assessor shall also review all claims for the veterans' organization exemption to ascertain whether the property on which the exemption is claimed meets the requirements of Section 215.1. In this connection, the assessor shall consider, among other matters, whether:

(A) Any capital investment of the owner or operator for expansion of a physical plant is justified by the contemplated return thereon, and required to serve the interests of the community.

(B) The property on which the exemption is claimed is used for the actual operation of an exempt activity and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.

(2) The assessor may institute an audit or verification of the operations of the owner or operator of the applicant's property to ascertain whether both the owner and operator meet the requirements of Section 214.

(c) (1) The assessor may deny a claim for the welfare exemption on a property, notwithstanding that the claimant has been granted an organizational clearance certificate by the board.

(2) If the assessor finds that the claimant's property is ineligible for the welfare exemption or the veterans' organization exemption, the assessor shall notify the claimant in writing of all of the following:

(A) That the property is ineligible for the exemption.

(B) That the claimant may seek a refund of property taxes paid by filing a refund claim with the county.

(C) That if the claimant's refund claim with the county is denied, the claimant may file a refund action in superior court.

(d) Notwithstanding subdivision (a), an applicant, granted a welfare exemption and owning any property exempted pursuant to Section 214.15 or Section 231, shall not be required to reapply for the welfare exemption in any subsequent year in which there has been no transfer of, or other change in title to, the exempted property and the property is used exclusively by a governmental entity or by a nonprofit corporation described in Section 214.15 for its interest and benefit. The applicant shall notify the assessor on or before February 15 if, on or before the preceding lien date, the applicant became ineligible for the welfare exemption or if, on or before that lien date, the property was no longer owned by the applicant or otherwise failed to meet all requirements for the welfare exemption.

Prior to the lien date, the assessor shall annually mail a notice to every applicant relieved of the requirement of filing an annual application by this subdivision.

The notice shall be in a form and contain that information that the board may prescribe, and shall set forth the circumstances under which the property may no longer be eligible for exemption, and advise the applicant of the duty to inform the assessor if the property is no longer eligible for exemption.

The notice shall include a card that is to be returned to the assessor by any applicant desiring to maintain eligibility for the welfare exemption under Section 214.15 or Section 231. The card shall be in the following form:

To all persons who have received a welfare exemption under Section 214.15 or Section 231 of the Revenue and Taxation Code for the _______________ fiscal year.

Question: Will the property to which the exemption applies in the _____________ fiscal year continue to be used exclusively by government or by an organization as described in Section 214.15 for its interest and

benefit in the fiscal year?

YES___________         NO_____________

Signature: ___________________________

Title: _______________________________

Failure to return this card does not of itself constitute a waiver of exemption as called for by the California Constitution, but may result in onsite inspection to verify exempt activity.

(e) Upon any indication that a welfare exemption or veterans' organization exemption on the property has been incorrectly granted, the assessor shall redetermine eligibility for the exemption. If the assessor determines that the property, or any portion thereof, is no longer eligible for the exemption, he or she shall immediately cancel the exemption on so much of the property as is no longer eligible for the exemption.

(f) If a welfare exemption or veterans' organization exemption on the property has been incorrectly allowed, an escape assessment as provided by Article 4 (commencing with Section 531) of Chapter 3 in the amount of the exemption, with interest as provided in Section 506, shall be made, and a penalty shall be assessed for any failure to notify the assessor as required by this section in an amount equaling 10 percent of the escape assessment, but may not exceed two hundred fifty dollars ($250).

(g) Pursuant to Section 15640 of the Government Code, the board shall review the assessor's administration of the welfare exemption and the veterans organization exemption as part of the board's survey of the county assessment roll to ensure the proper administration of the exemption.

History.—Added by Stats. 1945, p. 2602, in effect September 15, 1945. Stats. 1966, p. 657 (First Extra Session), in effect October 6, 1966, first operative for the 1967–68 assessment year, substituted "March 15" for "April 1st", added the provision requiring that affidavits be forwarded to the board by April 1 with the assessor's recommendations, added the provision requiring that the board make and forward its finding to the assessor by June 1, deleted a provision that the assessor consider the board's finding, and added the last sentence. Stats. 1968, p. 1329, in effect November 13, 1968, added subdivision (d) and "and the applicant's property" to the first sentence of the second paragraph. Stats. 1969, p. 199, in effect May 13, 1969, added the second sentence of the second paragraph extending to June 15, in some cases, the date on which the board must make its finding. Stats. 1970, p. 461, in effect November 23, 1970, changed "of indirectly" to "or indirectly" in subdivision (b). Stats. 1971, p. 3516, in effect March 4, 1972, deleted "and 215" immediately after "Sections 214" in the second sentence of the first paragraph. Stats. 1972, p. 195, in effect March 7, 1973, operative on the lien date in 1973, added "veterans' organization" to the first paragraph. Stats. 1990, Ch. 718, in effect January 1, 1991, added "(a)" before "Affidavits"; deleted "concerned" after "assessor" in the first sentence and added "or her" after "his" in the second sentence in subdivision (a); substituted "(1)", "(2)", "(3)", and "(4)" for "(a)", "(b)", "(c)", and "(d)" and "on" for "in" after "The property" in subdivision (a); added "(b)" before "The board"; and added subdivisions (c), (d), and (e). Stats. 1993, Ch. 1187, in effect January 1, 1994, added a period after "assessor", deleted "and" after "assessor", added "Affidavits . . . first time" which created a new second sentence with the balance of the former first sentence, and added the third sentence to subdivision (a); and deleted "not later than June 1" after "concerned" in the first sentence, deleted "the time for making" after "property," and substituted "shall be forwarded" for "and forwarding it" after "finding" in the second sentence, and substituted "within 30 days . . . following the hearing" for "is extended to no later than June 15." after "concerned" in the third sentence of subdivision (b). Stats. 1994, Ch. 146, in effect January 1, 1995, substituted "the" for "such" after "review all" in the fourth sentence of subdivision (a), substituted "that" for "which" twice in subdivision (c), and reformatted notice in subdivision (c) by placing "Title:" underneath "Signature:". Stats. 1998, Ch. 695 (SB 2235), in effect January 1, 1999, substituted "February" for "March" after "on or before" in the first sentence of subdivision (a). Stats. 1999, Ch. 927 (AB 1559), in effect October 10, 1999, operative January 1, 2000, added "Section 214.15 or" before "Section 231", and added "or by a nonprofit corporation described in Section 214.15" after "governmental entity" in the first sentence of the first paragraph, and added "Section 214.15 or" before "Section 231" in the first and third sentences, added "or by an organization as described in Section 214.15" after "by government" in the fourth sentence of the fourth paragraph of subdivision (c); Stats. 2002, Ch. 214 (SB 2086), in effect January 1, 2003, added an "a" after "for expansion of" in the first sentence of paragraph (3) and added "the" after "property on which" in the first sentence of paragraph (4) of subdivision (a); substituted "If" for "In a case where" before "the board conducts" in the second sentence and added "that" after "of an applicant" in the third sentence of subdivision (b); substituted "February 15" for "March 15" after "on or before" in the second sentence of the first paragraph and added a comma after the first "eligible for exemption" in the first sentence of the third paragraph of subdivision (c); and substituted "may not exceed" for "in no event exceeding" after "escape assessment, but" in the first sentence of subdivision (e). Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, substituted "Claims" for "Affidavits" before "for the welfare", deleted "in duplicate" after "shall be filed" in the first sentence, and deleted the former second, third, fourth and fifth sentences and former paragraphs (1) and (3) of the fifth sentence which provided that "Affidavits of organizations filing for the first time shall be accompanied by duplicate certified copies of the financial statements of the owner and operator. Thereafter, financial statements shall be submitted only if requested in writing by either the assessor or the board. Copies of the affidavits and financial statements shall be forwarded not later than April 1 by the assessor with his or her recommendations for approval or denial to the board which shall review all the affidavits and statements and may institute an independent audit or verification of the operations of the owner and operator to ascertain whether both the owner and operator meet the requirements of Section 214 of the Revenue and Taxation Code. In this connection the board shall consider, among other matters, whether: (1) The services and expenses of the owner or operator (including salaries) are excessive, based upon like services and salaries in comparable public institutions. (2) The operations of the owner or operator, either directly or indirectly, materially enhance the private gain of any individual or individuals."; added the second paragraph to subdivision (a); added subdivision (b) and created subparagraphs (A) and (B) of paragraph (1) therein with former paragraphs (3) and (4) of the fifth sentence of subdivision (a); added subdivision (c); relettered former subdivision (c) as subdivision (d); relettered former subdivisions (d) and (e) as subdivisions (e) and (f), respectively, and added "on the property" after "a welfare exemption" in the first sentences therein; and added subdivision (g). Stats. 2006, Ch. 224 (SB 1607), in effect January 1, 2007, added the second sentence commencing with "The assessor shall also", to paragraph (1) of subdivision (b); added "or the veterans' organization exemption" after "welfare exemption" in the first sentence of paragraph (2) and deleted "welfare" after "ineligible for the" in the first sentence of subparagraph (A) therein in subdivision (c); added "or veterans' organization exemption" after "a welfare exemption" in the first sentences of subdivisions (e) and (f); and added "and the veterans' organization exemption" after "the welfare exemption" in the first sentence of subdivision (g).

Revision after April 1.—A claimant may file a revision of claim withdrawing some of the property from the scope of its claim after April 1. St. Francis Memorial Hospital v. San Francisco, 137 Cal.App.2d 321.

Note.—See Sections 214 and 214.01.

Note.—Section 5 of Stats. 1999, Ch. 927 (AB 1559), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Back to top


254.6. Homes for the aged. [Repealed by Stats. 1978, Ch. 1112, in effect January 1, 1979.]

254.6. Welfare exemption; board duties. (a) An organization that intends to claim the welfare exemption or veterans' organization exemption shall file with the State Board of Equalization a claim for an organizational clearance certificate.

(b) The board staff shall review each claim for an organizational clearance certificate for the welfare exemption to ascertain whether the organization meets the requirements of Section 214 and shall issue a certificate to a claimant that meets these requirements. The board staff shall also review each claim for an organizational clearance certificate for the veterans' organization exemption to ascertain whether the organization meets the requirements of Section 215.1 and shall issue a certificate to a claimant that meets these requirements. In this connection, the board staff shall consider, among other matters, whether:

(1) The services and expenses of the owner or operator (including salaries) are excessive, based upon like services and salaries in comparable public or private institutions.

(2) The operations of the owner or operator, either directly or indirectly, materially enhance the private gain of any individual or individuals.

(c) Any claim of any organization that files for an organizational clearance certificate for the first time shall be accompanied by the claimant's corporate identification number, mailing address, and all of the following documents:

(1) A certified copy of the financial statements of the organization.

(2) A certified copy of the articles of incorporation and any amendments thereto, or in the case of any noncorporate fund or foundation, its bylaws, articles of association, constitution, or regulations and any amendments thereto.

(3) A copy of a valid, unrevoked letter or ruling from either the Franchise Tax Board or, in the alternative, the Internal Revenue Service, that states that the organization qualifies as an exempt organization under the appropriate provisions of the Bank and Corporation Tax Law or the Internal Revenue Code.

(d) (1) If the board staff determines that a claimant is not eligible for an organizational clearance certificate, the board shall notify the claimant of the ineligibility.

(2) The claimant may file an appeal of the board staff's finding of ineligibility with the board within 60 days of the date of mailing of the notice of ineligibility. The appeal of the board staff's finding shall be in writing and shall state the specific grounds upon which the appeal is founded.

(3) The board shall conduct a hearing on the appeal in accordance with any rules of notice, procedure, and briefing as the board shall prescribe. The parties to the hearing or proceeding shall be the board staff and the claimant appealing the finding of ineligibility. The board staff and the claimant may agree in writing to submit the matter to the board for a decision without a hearing. The board shall provide written findings and conclusions or a written decision to support its decision.

(e) (1) Once granted, an organizational clearance certificate for the welfare exemption remains valid until the board staff determines that the organization no longer meets the requirements of Section 214. Once granted, an organizational clearance certificate for the veterans' organization exemption remains valid until the board staff determines that the organization no longer meets the requirements of Section 215.1.

(2) If the board staff determines that the organization no longer meets the requirements for an organizational clearance certificate, the board staff shall revoke the certificate and notify the claimant and each county assessor of the revocation.

(3) The organization may file an appeal of the board staff's revocation with the board within 60 days of the date of mailing of the notice revocation. The appeal of the revocation shall be in writing and shall state the specific grounds upon which the appeal is founded.

(4) The board shall conduct a hearing on the appeal in accordance with any rules of notice, procedure, and briefing as the board shall prescribe. The parties to the hearing or proceeding shall be the board staff and the claimant appealing the finding of ineligibility. The board staff and the claimant may agree in writing to submit the matter to the board for decision without hearing. The board shall provide written findings and conclusions or a written decision to support its decision.

(f) Pursuant to Section 15618 of the Government Code, the board may institute an audit or verification of an organization to ascertain whether the organization meets the requirements of Section 214.

History.—Added by Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004. Stats. 2006, Ch. 224 (SB 1607), in effect January 1, 2007, added "or veterans' organization exemption" after "the welfare exemption" in the first sentence of subdivision (a); added "for the welfare exemption" after "organizational clearance certificate" in the first sentence and added the second sentence commencing with "The board staff shall also" of subdivision (b); and substituted "for the welfare exemption remains" for "shall remain" after "organizational clearance certificate" in the first sentence and added the second sentence commencing with "Once granted, an organizational certificate for the veterans' organization exemption" of paragraph (1) and substituted "for an organizational clearance certificate" for "of Section 214" after "meets the requirements" in the first sentence of paragraph (2) of subdivision (e).

Back to top


255. Time to file affidavits. (a) Affidavits required for exemptions named in this article, except the homeowners' exemption, shall be filed with the assessor between the lien date and 5 p.m. on February 15.

(b) Affidavits for the homeowners' exemption except as otherwise provided in Sections 255.1, 255.2, and 275, shall be filed with the assessor any time after the claimant becomes eligible but no later than 5 p.m. on February 15.

(c) Notwithstanding the provisions of subdivision (a), any claimant who has been found ineligible for the church exemption or the religious exemption may file an affidavit for a welfare exemption. Affidavits for the welfare exemption filed pursuant to this subdivision shall be filed within 15 days from the date of notification by the assessor of the claimants ineligibility for the church exemption or the religious exemption.

History.—Stats. 1945, p. 2603, in effect September 15, 1945, added the clause "except the welfare exemption." Stats. 1947, p. 1700, in effect September 19, 1947, substituted "May" for "June." Stats. 1959, p. 2964, in effect September 18, 1959, added "o'clock" and substituted "first" for "last" before "Monday in May." Stats. 1966, p. 657 (First Extra Session), in effect October 6, 1966, substituted "lien date" for "first Monday in March" and "on April 15" for "the first Monday in May." Stats. 1968, p. 2580, in effect November 13, 1968, operative January 1, 1970, substituted "veterans' " for "welfare" and "March 15" for "April 15" in the first sentence, and added the second sentence. Stats. 1969, p. 895, operative January 1, 1970, added the references to the homeowner's exemption to the first and second sentences of the first paragraph. Stats. 1969, p. 3119, operative January 1, 1970, added the second paragraph relating to documented vessels. Stats. 1974, Ch. 60, p. 130, in effect March 12, 1974, substituted "homeowners' " for "homeowner's" in the first and second sentences, and added "except that affidavits for the homeowners' exemption may be filed any time after acquisition of a dwelling if such acquisition is after March 1, 1974, and the dwelling is occupied by an owner as his principal place of residence" to the second sentence of the first paragraph after "April 15". Stats. 1974, Ch. 1107, p. 2366, in effect September 23, 1974, operative with respect to the 1974–75 fiscal year and thereafter, substituted "Affidavits for the veterans' exemption" for "Veterans' exemptions and affidavits for the homeowners' exemption" in the second sentence, deleted the balance of the second sentence after "April 15", and added the third sentence of the first paragraph. Stats. 1976, Ch. 681, p. 1679, in effect January 1, 1977, added the subdivision letters, added "the church exemption," after "except" in subdivision (a), and added subdivision (d). Stats. 1977, Ch. 256, in effect January 1, 1978, added "and the transshipment exemption under Section 225," and deleted "o'clock" after "5" in subdivisions (a), (b), (c) and (d). Also added subdivision (e). Stats. 1978, Ch. 1112, in effect January 1, 1979, deleted the phrase in subdivision (e) "owns taxable property having an aggregate cost of less than thirty thousand dollars ($30,000)," and replaced it with the language "is not required to file a property statement,". Stats. 1981, Ch. 542, in effect January 1, 1982, added "and religious exemption" after "church exemption" in subdivision (d). Stats. 1983, Ch. 312, in effect January 1, 1984, substituted "religious exemption" for "transshipment exemption under Section 225" after "and the" in the first sentence of subdivision (a), and substituted subdivision (e) for former subdivision (e) which related to the transshipment exemption. Stats. 1988, Ch. 1271, in effect September 26, 1988, added "and aircraft of historical significance exemption," after "religious exemption" in subdivision (a), added "for the aircraft of historical significance exemption and" after "required" in subdivision (c). Stats. 1997, Ch. 941 (SB 542), in effect January 1, 1998, substituted "homeowners' exemption" for "church exemption, the veterans' exemption, the homeowners' exemption, the religious exemption, and the aircraft of historical significance exemption" after "except the" and substituted "February" for "March" after "5 p.m. on" in the first sentence and deleted the former second sentence which read "Affidavits for the veterans' exemption shall be filed with the assessor between the lien date and 5 p.m. on April 15." in subdivision (a); substituted "February" for "April" after "5 p.m. on" in the first sentence of subdivision (b); deleted former subdivisions (c) and (d) which read "(c) Affidavits required for the aircraft of historical significance exemption and for classification of vessels as documented vessels eligible for assessment under Section 227 shall be filed with the assessor between the lien date and 5 p.m. on April 1." and "(d) Affidavits for the church exemption and religious exemption shall be filed with the assessor between the lien date and 5 p.m. on March 31.", respectively; relettered former subdivision (e) as subdivision (c) and deleted "after timely filing an affidavit therefor pursuant to subdivision (d)," after "religious exemption" in the first sentence, and substituted "claimants' " for "claimants" in the second sentence of former subdivision (e).

Note.—Section 5 of Stats. 1983, Ch. 312, provided that no appropriation is made for the purpose of making reimbursement. Sec. 6 thereof provided that this act does not contain a repealer and shall remain in effect unless and until amended or repealed by a later enacted act.

Back to top


255.1. Homeowners' exemption affidavit; extension of time to file. The assessor, whenever in his judgment good cause exists, may grant a reasonable extension of time for filing a claim for the homeowners' property tax exemption to any claimant who has filed a timely claim, but the claim is otherwise defective because it lacks either any of the required information or the signature of the claimant.

Only one extension shall be allowed to such claimant for any one filing period. No extension shall be more than six months from the due date provided for filing the claim, unless the assessor does not find and notify the claimant of the defect within a reasonable time to allow resubmission of the defective claim as corrected before the expiration of the six-month extension, in which case the assessor shall extend the permissible period for filing no more than three months from the time the defect or defects are found and the claimant is notified.

History.—Added by Stats. 1970, p. 458, in effect June 15, 1970, first operative with respect to claims for the 1970–71 fiscal year and fiscal years thereafter. Stats. 1971, p. 199, in effect June 17, 1971, first operative with respect to claims for the 1971–1972 fiscal year and fiscal years thereafter, substituted "any of the" for "all" before "required information" in the first sentence of the first paragraph.

255.2. Homeowners' exemption for disqualified veteran. Notwith-standing Section 255 of the Revenue and Taxation Code, any veteran who is filing for the veteran's exemption on his or her principal place of residence for the first time or who was found eligible for that exemption on his or her principal place of residence in the immediately preceding year and whose claim is timely filed but disallowed for the current year may, if otherwise qualified for the homeowner's exemption, file for the homeowner's exemption as provided herein.

The assessor shall notify those applicants he or she finds ineligible for the veteran's exemption of his or her finding and shall inform them that they have 15 days from the date of the notice to file for the homeowner's exemption. The failure of the assessor to provide the notice required by this section shall extend the filing period for those not notified to the next lien date.

History.—Added by Stats. 1970, p. 2444, in effect September 17, 1970. Stats. 1971, p. 3517 in effect March 4, 1972, added "timely filed but" between "claim is" and "disallowed" in the first sentence of the first paragraph. Stats. 1991, Ch. 646, in effect January 1, 1992, added "or her" after "his" in the first paragraph; added "or she" after "he" and added "or her" after "his" in the first sentence of the second paragraph; and deleted the former third paragraph which provided "For the 1970–71 fiscal year only, any veteran who would have qualified under this section for an extension of filing time for the homeowner's exemption shall have 15 days after the operative date of this section to file for the homeowner's exemption for the current fiscal year."

255.3. Homeowners' exemption affidavit; assessor to mail. For the 1998–99 fiscal year and each fiscal year thereafter, the assessor shall on or before January 15 mail a claim form for the homeowners' exemption to a person acquiring title to, and recording his or her ownership of an eligible dwelling after the immediately preceding lien date and before the lien date of the calendar year of the claim. The failure of a person to receive a claim form shall not, however, excuse the person from timely filing of the required affidavit.

History.—Added by Stats. 1974, Ch. 60, p. 130, in effect March 12, 1974. Sec. 15 thereof provided no payment by state to local governments because of this act. Stats. 1974, Ch. 1107, p. 2367, in effect September 23, 1974, operative with respect to the 1974–75 fiscal year and thereafter, substituted "the assessor" for "county assessors" in subdivision (a); substituted "the assessor" for "county assessors", substituted ", on or before March 15, to each homeowner" for "to all homeowners", and added the balance of the first sentence after "lien date", reworded the second sentence relating to the contents of the notice, and added the third sentence of subdivision (b); and substituted "assessor" for "county assessor", substituted "before March 15" for "after the lien date", and substituted "a person acquiring title to, and recording his ownership" for "all persons acquiring title and who are owners of record" in the first sentence, and added the second sentence of subdivision (c). Sec. 20 thereof provided no payment by state to local governments because of this act. Stats. 1979, Ch. 65, in effect January 1, 1980 deleted requirement that assessor send homeowners' exemption claim to persons who had received claim in preceding year. Stats. 1997, Ch. 941 (SB 542), in effect January 1, 1998, substituted "1998–99" for "1974–75" after "For the", added "each fiscal year" before "thereafter", deleted "each year" after "shall", substituted "January" for "March" after "before", and added "or her" after "his" in the first sentence.

Back to top


255.4. Homeowners' exemption affidavit; accompanying notice. [Repealed by Stats. 1979, Ch. 65, in effect January 1, 1980.]

255.6. Homeowners' exemption; effective dates. The assessor shall verify the eligibility of each claimant who is receiving a homeowners' exemption to continue to receive such an exemption in accordance with rules issued by the board to provide for a periodic audit and for the establishment of a control system for the homeowners' exemption claims.

History.—Added by Stats. 1974, Ch. 60, p. 131, in effect March 12, 1974. Stats. 1974, Ch. 1107, p. 2368, in effect September 23, 1974, operative with respect to the 1974–75 fiscal year and thereafter, deleted the former first paragraph; and deleted "of the county in which such a dwelling is situated" after "assessor", substituted "claimant" for "owner", deleted "and regulations, which shall be" after "rules", and deleted "," after "board" in the first sentence of the second paragraph.

Note.—Section 15 of Stats. 1974, Ch. 60, p. 133, provided no payment by state to local governments because of this act. Section 20 of Stats. 1974, Ch. 1107, p. 2372, provided no payment by state to local governments because of this act.

255.7. Homeowners' exemption; recorders to supply assessors with documents. Whenever a change of ownership is recorded in the county recorder's office, the county recorder shall provide the assessor with a copy of the transfer of ownership document as soon as possible.

History.—Added by Stats. 1974, Ch. 60, p. 131, in effect March 12, 1974. Sec. 15 thereof provided no payment by state to local governments because of this act.

255.8. Notices and form to be in English and Spanish. In counties having 10 percent or more persons who are of Spanish origin according to the most recent federal decennial census, claim forms and accompanying instructions required to be sent to homeowners by Section 255.3 shall be in English and Spanish. Claim forms and instructions in Spanish may also be sent or made available in any other county, at the discretion of the county assessor.

History.—Added by Stats. 1974, Ch. 1420, p. 3123, in effect January 1, 1975, Stats. 1975, Ch. 224, in effect January 1, 1976, renumbered the section which was formerly numbered 255.6. Stats. 1983, Ch. 1281, in effect September 30, 1983, substituted "of Spanish origin" for "Spanish surnamed or Spanish speaking" after "who are", substituted "claim forms and accompanying instructions" for "the notices required to be sent to homeowners by subdivision (b) of Section 255.3 and Section 255.4 and the instructions accompanying the claim form" after "census", and deleted "subdivision (c) of" before "Section 255.3" in the first sentence; and substituted "Claim forms and instructions" for "Notices" before "in Spanish" in the second sentence.

Note.—Section 2 of Stats. 1974, Ch. 1420, p. 3123, provided no payment by state to local governments because of this act.

Back to top


256. Church exemption affidavit. (a) The affidavit for church exemption shall show that:

(1) The building and equipment are used solely for religious worship.

(2) The land claimed as exempt is required for the convenient use of the building.

(b) Each year before the lien date, county assessors shall mail a claim form for the church exemption to all recipients of such exemption in the prior year, except where the prior recipient has transferred title to the property since the prior lien date.

History.—Stats. 1975, Ch. 224, p. 603, in effect January 1, 1976, substituted "and equipment are" for "is" in subsection (a), substituted "land" for "described portion of the real property" in subsection (b), and deleted the former subsection (c) pertaining to rented property. Stats. 1976, Ch. 681, p. 1679, in effect January 1, 1977, added the subdivision letters; relettered the former subsections (a) and (b) as subsections (1) and (2), respectively; and added subdivision (b).

256.5. Cemetery exemption affidavit. The affidavit for the cemetery exemption shall show that:

(a) The property is used or held exclusively for the burial or other permanent deposit of the human dead or for the care, maintenance or upkeep of such property or such dead, and

(b) The property is not used or held for profit.

History.—Added by Stats. 1966, p. 658 (First Extra Session), in effect October 6, 1966, first operative for the 1967–68 assessment year.

256.6. Cemetery exemption; annual notice. (a) (1) Prior to the lien date, the assessor shall annually mail a notice to every person or entity that received, in the immediately preceding fiscal year, the exemption provided by Section 204.

(2) The board shall prescribe the form for the annual notice described in paragraph (1), which form shall specify the following:

(A) The circumstances under which the property may be disqualified from exemption.

(B) That the person or entity has a duty to inform the assessor if the property no longer qualifies for the exemption.

(b) At the same time the notice described in subdivision (a) is mailed, the assessor shall include with that notice a card that may be returned to the assessor by the person or entity receiving the notice, which card shall be in the following form:

To all persons and entities that have received a nonprofit cemetery exemption for the _______________ fiscal year.

QUESTION: Will the property to which the exemption applied in the fiscal year continue to be used or held exclusively for the burial or other permanent deposit of the human dead or for the care, maintenance, or upkeep of that property or those dead in the _____________ fiscal year?

YES___________          NO____________

Signature: _______________________________

Title: __________________________________

Failure to return this card does not constitute a waiver of exemption as specified by the California Constitution, but may result in an onsite inspection by the assossor to verify any exempt activity.

History.—Added by Stats. 2003, Ch. 604 (SB 1059), in effect January 1, 2004.

Back to top


256.7. Cemetery exemption; pre-1900. (a) Notwithstanding Sections 254, 256.5, and 256.6, an affidavit claiming the cemetery exemption, as provided for in subdivision (g) of Section 3 of Article XIII of the California Constitution and Section 204, is not required to be filed in order to receive the exemption for any cemetery that exists, or is discovered to exist, in the unincorporated area of a county for which the assessor is unable to identify the legal cemetery authority, as defined in Section 7018 of the Health and Safety Code, that may by law claim the exemption for that cemetery, if both of the following apply:

(1) The cemetery was used by residents of the state prior to the year 1900.

(2) The cemetery is no longer used for current or future interments.

(b) Any tax, penalty, or interest imposed upon a cemetery subject to this section shall be canceled pursuant to Article 1 (commencing with Section 4985) of Chapter 4 of Part 9, as if it had been levied or charged erroneously.

History.—Added by Stats. 2003, Ch. 604 (SB 1059), in effect January 1, 2004.

257. Religious exemption affidavit. (a) Any person claiming the religious exemption shall submit to the assessor an affidavit giving specific information relating to property tax exemption.

(b) The affidavit shall show that:

(1) The building, equipment, and land are used exclusively for religious purposes.

(2) The land claimed as exempt is required for the convenient use of the building.

(3) The property is owned by an entity organized and operating exclusively for religious purposes.

(4) The entity is nonprofit.

(5) No part of the net earnings inures to the benefit of any private individual.

(c) Any exemption granted pursuant to a claim filed in accordance with this section, once granted, shall remain in effect until that time that title to the property changes or the property is no longer used for exempt purposes. Any person who is granted an exemption pursuant to a claim filed in accordance with this section shall notify the assessor by February 15 if the property becomes ineligible for the exemption.

(d) Upon any indication that a religious exemption has been incorrectly allowed, the assessor shall make a redetermination of eligibility for the religious exemption. If the assessor determines that the property or any portion thereof is no longer eligible for the exemption, he or she shall immediately cancel the exemption on so much of the property as is no longer eligible for exemption.

If a religious exemption has been incorrectly allowed, an escape assessment as allowed by Article 4 (commencing with Section 531) of Chapter 3 in the amount of the exemption with interest as provided in Section 506 shall be made, together with a penalty for failure to notify the assessor, where applicable, in the amount of 10 percent of the assessment, but may not exceed two hundred fifty dollars ($250) in tax liability.

History.—Added by Stats. 1981, Ch. 542, in effect January 1, 1982. Stats. 1983, Ch. 312, in effect January 1, 1984, added "by June 30" after "assessor" in the second sentence of subdivision (c). Stats. 2002, Ch. 214 (SB 2086), in effect January 1, 2003, substituted "that time that" for "such time as" after "in effect until" in the first sentence and substituted "February 15" for "June 30" after "the assessor by" in the second sentence of subdivision (c); and substituted ", but may not" for "but not to" after "of the assessment" in the first sentence of the second paragraph of subdivision (d).

257.1. Religious exemption; annual notice. For the 1983–84 fiscal year and fiscal years thereafter, the assessor shall annually, prior to the lien date, mail a notice to every person who received the religious exemption for the previous fiscal year.

The notice shall be in a form and contain that information which the board may prescribe, and shall set forth the circumstances under which the property may no longer be eligible for exemption and advise the person of the duty to inform the assessor if the property is no longer eligible for exemption.

The notice shall include a card which is to be returned to the assessor by any person who desires to maintain eligibility for the religious exemption. That card shall be in the following form:

To all persons who have received a religious exemption for the ___________ fiscal year.

QUESTION: Will the property to which the exemption applies in the _________________ fiscal year continue to be used exclusively for religious purposes in the ______________ fiscal year?

YES___________          NO____________

Signature: _______________________________

Title: __________________________________

Failure to return this card does not of itself constitute a waiver of exemption as called for by the California Constitution, but may result in onsite inspection to verify exempt activity.

History.—Added by Stats. 1981, Ch. 542, in effect January 1, 1982. Stats. 1983, Ch. 312, in effect January 1, 1984, added ", prior to the lien date," after "annually" in the first paragraph.

Back to top


258. College exemption affidavit. The affidavit for the college exemption shall show that:

(a) The educational institution is of collegiate grade and is not conducted for profit.

(b) The grounds for which exemption is claimed are those within which its buildings are located.

(c) The property for which exemption is claimed is used exclusively for the purposes of education.

Any additional proof of the facts stated may be required by the assessor.

The exempt grounds need not be contiguous or in one tract.

History.—Stats. 1963, p. 998, in effect September 20, 1963, removed the 100-acre limitation on nonprofit educational institution's exemption.

259. Exhibition exemption affidavit. The affidavit for the exhibition exemption shall state the facts showing that the property comes within all the descriptions entitling it to the exemption.

259.5. Welfare exemption affidavit. The claim for the welfare exemption shall show that the property use requirements entitling the property to the exemption are met, and that the claimant has a valid organizational clearance certificate issued pursuant to Section 254.6.

History.—Added by Stats. 1945, p. 707, in effect September 15, 1945. Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, substituted "claim" for "affidavit" after "The", substituted "the property use" for "both the property and the owner meet all the" after "shall show that", and added "are met, and that the claimant has a valid organizational clearance certificate issued pursuant to Section 254.6" after "to the exemption" in the first sentence.

259.6. Affidavit for immature forest trees. [Repealed by Stats. 1978, Ch. 1112, in effect January 1, 1979.]

259.7. Veterans' organization exemption affidavit. The claim for the veterans' organization exemption shall show that the property use requirements entitling the property to the exemption are met, and that the claimant has a valid organizational clearance certificate issued pursuant to Section 254.6.

History.—Added by Stats. 1972, p. 196, in effect March 7, 1973, operative on the lien date in 1973. Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, substituted "claim" for "affidavit" after "The", substituted "the property use" for "both the property and the owner meet all the" after "shall show that", and added "are met, and that the claimant has a valid organizational clearance certificate issued pursuant to Section 254.6" after "to the exemption" in the first sentence.

259.8. Free public libraries exemption affidavit. The affidavit for the free public libraries exemption shall indicate the extent to which the property is open to the public, whether or not any admission or user charge is made for the use of library books, periodicals or facilities and the extent (if any) to which sales or business activities are conducted on the premises.

History.—Added by Stats. 1974, Ch. 186, p. 373, in effect January 1, 1975.

Back to top


259.9. Free museums exemption affidavit. The affidavit for the free museums exemption shall indicate whether or not any admission or user charge is made to those viewing the museum contents and the extent (if any) to which sales or business activities are conducted on the premises.

History.—Added by Stats. 1974, Ch. 186, p. 374, in effect January 1, 1975.

259.10. Public schools exemption affidavit. The affidavit for the public schools exemption shall show:

(a) The owner's name and the name of the school within the public school system that is using the property exclusively for public school purposes.

(b) The terms of the agreement by which the public school obtained the use of the property. When the agreement is in writing, a copy of the document shall accompany the affidavit.

History.—Added by Stats. 1974, Ch. 186, p. 374, in effect January 1, 1975.

259.11. Historical aircraft exemption affidavit. The affidavit for the aircraft of historical significance exemption shall show that both the property and the owner meet all the requirements entitling the property to the exemption.

History.—Added by Stats. 1988, Ch. 1271, in effect September 26, 1988.

259.12. Historical aircraft exemption affidavit. [Repealed by Stats. 1990, Ch. 126, in effect June 11, 1990.]

259.13. Tribal housing exemption affidavit. (a) Affidavits for the tribal housing exemption shall be filed on or before February 15 of each year with the assessor. Affidavits of claimants shall be accompanied by:

(1) The documents required by subdivision (c) of Section 237.

(2) A description of the property for which the exemption is claimed, including the entire project property and the portion for which exemption is claimed. If the property includes units which do not qualify for the exemption, the description must list the qualifying and nonqualifying units.

(3) An annual affidavit by the claimant that the property for which exemption is claimed meets the income and rental requirements for the exemption and listing the number of occupants in each unit for which the exemption is claimed and the income and rental limits applicable for each household. Annual tenant affidavits verifying household size and income should be on file with the claimant for each exempt unit.

(b) Once the exemption has been granted in a particular county to a particular tribe or tribally designated housing entity, documents establishing that the tribe is federally recognized and that the housing entity has been designated by the tribe need not be resubmitted for additional years or additional properties of that tribe or tribally designated housing entity in the same county.

(c) Once the exemption has been granted for a particular property, it is not necessary to resubmit documents establishing that there is a legally binding restriction on the use of that property in succeeding years for as long as the legally binding restriction is in effect.

(d) Upon any indication that a tribal housing exemption has been incorrectly allowed, the assessor shall make a redetermination of eligibility for the tribal housing exemption. If the assessor determines that the property or any portion thereof is no longer eligible for the exemption, he or she shall immediately cancel the exemption on so much of the property as is no longer eligible for exemption.

(e) If a tribal housing exemption has been incorrectly allowed, an escape assessment as allowed by Article 4 (commencing with Section 531) of Chapter 3 in the amount of the exemption with interest as provided in Section 506 shall be made, together with a penalty for failure to notify the assessor, where applicable, in the amount of 10 percent of the assessment.

History.—Added by Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003.

Back to top


260. Noncompliance with procedure. If any person, claiming any exemption named in this article, fails to follow the required procedure, the exemption is waived by the person.

History.—Stats. 1941, p. 409, operative February 1, 1941, substituted provision for waiver for former provision that property might be treated as if exemption did not exist.

Construction.—The exemptions found in Article 1 of Chapter 2 of the Revenue and Taxation Code, located in sections 201 through 241, do not include property owned by the state or a local government entity. The holding in Chesney v. Byram, (1940) 15 Cal.2d 460, that these exemptions may be waived if a private party fails to abide by the regulations enacting the exemptions, do not apply to publicly-owned property. L&B Real Estate v. Housing Authority of the County of Los Angeles, 149 Cal.App.4th 950.

Constitutionality.—The provisions of this section are valid. Chesney v. Byram, 15 Cal.2d 460.

261. Recordation requirement. (a) Except as otherwise provided in subdivisions (b) and (c), as a prerequisite to the allowance of either the veterans' or welfare exemption with respect to taxes on real property, the interest of the claimant in the property must be of record on the lien date in the office of the recorder of the county in which the property is located. Failure of the claimant to establish the fact of such recordation to the assessor constitutes a waiver of the exemption.

(b) A claimant for the veterans' exemption who on the lien date has an interest in real property consisting of an unrecorded contract of sale may in lieu of the recordation pursuant to subdivision (a) furnish or show the contract to the assessor and file an affidavit with the assessor stating all of the following:

(1) That he purchased the real property pursuant to such unrecorded contract of sale.

(2) That under such unrecorded contract of sale he is obligated and responsible for the payment of the taxes.

(c) A claimant for the welfare exemption which on the lien date has a possessory interest in publicly owned land, owns water rights, or owns improvements on land owned by another may in lieu of the recordation pursuant to subdivision (a) file a copy of the document giving rise to that possessory interest or water rights or file a written statement attesting to the separate ownership of those improvements with the assessor. That document copy or written statement shall not be required annually following the year in which it has been filed but shall remain in effect until such time as that possessory interest terminates or ownership of the water rights or improvements transfers.

History.—Added by Stats. 1949, p. 2826, in effect October 1, 1949. Stats. 1961, p. 3284, in effect September 15, 1961, added the language "(a) Except as otherwise provided in subdivision (b)," and subdivision (b). Stats. 1984, Ch. 678, in effect January 1, 1985, substituted "subdivisions" for "subdivision" after "in", added "and (c)," after "(b)" in the first sentence in subdivision (a); added subdivision (c) thereto.

Construction.—Recordation of an interest in real property, required by subdivision (a) of this section as a prerequisite to the allowance of a welfare exemption, is not a prerequisite to the claims procedure, but rather is a part of the claims procedure. Thus, Section 214.12, which attempts retrospectively to eliminate the recordation requirement found in subdivision (a), is a legislative modification of the procedure of claiming the welfare exemption and is unconstitutional since it conflicts with Article XIII, Section 6 of the Constitution which proscribes retrospective legislative modification of the procedure for claiming a property tax exemption. Copren v. State Board of Equalization, 200 Cal.App.3d 828.

Back to top


Article 2.5. Late Exemption Claims*

* Article 2.5 was added by Stats. 1971, Ch. 303, p. 615, in effect July 12, 1971, operative for property taxes for the 1970–71 fiscal year and fiscal years thereafter.

270. Late filing; partial cancellation of tax. (a) With respect to property as to which the college, cemetery, church, religious, exhibition, veterans' organization, free public libraries, free museums, public schools, community colleges, state colleges, state universities, tribal housing, or welfare exemption was available but for which a timely application for exemption was not filed:

(1) Ninety percent of any tax or penalty or interest thereon shall be canceled or refunded provided an appropriate application for exemption is filed on or before the lien date in the calendar year next succeeding the calendar year in which the exemption was not claimed by a timely application.

(2) If the application is filed after the date specified in paragraph (1), 85 percent of any tax or penalty or interest thereon shall be canceled or refunded provided an appropriate application for exemption is filed and relief is not authorized under Section 214.01 or 271.

(b) Notwithstanding the provisions of subdivision (a), any tax or penalty or interest thereon exceeding two hundred fifty dollars ($250) in total amount shall be canceled or refunded provided it is imposed upon property entitled to relief under subdivision (a) for which an appropriate claim for exemption has been filed.

(c) With respect to property as to which the welfare exemption or veterans' organization exemption was available, all provisions of Section 254.5, other than the specified dates for the filing of affidavits and other acts, are applicable to this section.

History.—Stats. 1972, p. 196, in effect March 7, 1973, operative on the lien date in 1973, added "veterans' organization" to the first sentence of subdivision (a). Stats. 1974, Ch. 311, p. 602, in effect January 1, 1975, deleted "orphanage," after "exhibition," and added "free public libraries, free museums, public schools" after "veterans' organization" in the first sentence of subdivision (a). Stats. 1978, Ch. 936, in effect September 20, 1979, added "community colleges, state colleges, state universities" to the first paragraph. Sec. 14 of bill provided no reimbursement for local governments because of the provisions of the amendment. Stats. 1983, Ch. 120, in effect June 22, 1983, added "religious," after "church," in subdivision (a), and added subdivision (d). Stats. 1991, Ch. 646, in effect January 1, 1992, deleted subdivision (d) which provided that, for the 1977–78 to 1982–83 fiscal years, any tax, penalty, or interest, shall be canceled or refunded if the church or religious exemption was available and an appropriate claim for exemption was filed on or before March 1, 1984. Stats. 1995, Ch. 499, in effect January 1, 1996, substituted a colon for a dash at the end of the first paragraph, substituted "lien date in" for "first day of March of" after "before the", and substituted a period for "; or, if the application is filed thereafter," after "timely application" in paragraph (1), and substituted "If the application . . . in paragraph (1), 85" for "Eighty-five" before "percent of" in paragraph (2) of subdivision (a). Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, added ", tribal housing," after "state universities" in the first sentence of subdivision (a).

Note.—Section 3 of Stats. 1983, Ch. 120, provided that no appropriation is made and no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution or Section 2231 or 2234 of the Revenue and Taxation Code because self-financing authority is provided in this act.

Back to top


271. Property acquired after lien date; organizations not existing on lien date. (a) Provided that an appropriate application for exemption is filed within 90 days from the first day of the month following the month in which the property was acquired or by February 15 of the following calendar year, whichever occurs earlier, any tax or penalty or interest imposed upon:

(1) Property owned by any organization qualified for the college, cemetery, church, religious, exhibition, veterans' organization, tribal housing, or welfare exemption that is acquired by that organization during a given calendar year, after the lien date but prior to the first day of the fiscal year commencing within that calendar year, when the property is of a kind that would have been qualified for the college, cemetery, church, religious, exhibition, veterans' organization, tribal housing, or welfare exemption if it had been owned by the organization on the lien date, shall be canceled or refunded.

(2) Property owned by any organization that would have qualified for the college, cemetery, church, religious, exhibition, veterans' organization, tribal housing, or welfare exemption had the organization been in existence on the lien date, that was acquired by it during that calendar year after the lien date in that year but prior to the commencement of that fiscal year, and of a kind that presently qualifies for the exemption and that would have so qualified for that fiscal year had it been owned by the organization on the lien date and had the organization been in existence on the lien date, shall be canceled or refunded.

(3) Property acquired after the beginning of any fiscal year by an organization qualified for the college, cemetery, church, religious, exhibition, veterans' organization, tribal housing, or welfare exemption and the property is of a kind that would have qualified for an exemption if it had been owned by the organization on the lien date, whether or not that organization was in existence on the lien date, shall be canceled or refunded in the proportion that the number of days for which the property was so qualified during the fiscal year bears to 365.

(b) Eighty-five percent of any tax or penalty or interest thereon imposed upon property that would be entitled to relief under subdivision (a) or Section 214.01, except that an appropriate application for exemption was not filed within the time required by the applicable provision, shall be canceled or refunded provided that an appropriate application for exemption is filed after the last day on which relief could be granted under subdivision (a) or Section 214.01.

(c) Notwithstanding subdivision (b), any tax or penalty or interest thereon exceeding two hundred fifty dollars ($250) in total amount shall be canceled or refunded provided it is imposed upon property entitled to relief under subdivision (b) for which an appropriate claim for exemption has been filed.

(d) With respect to property acquired after the beginning of the fiscal year for which relief is sought, subdivisions (b) and (c) shall apply only to that pro rata portion of any tax or penalty or interest thereon that would have been canceled or refunded had the property qualified for relief under paragraph (3) of subdivision (a).

History.—Stats. 1972, p. 196, in effect March 7, 1973, operative on the lien date in 1973 added "veterans' organization" to subdivision (a)(1), (a)(2), and (a)(3). Stats. 1983, Ch. 312, in effect January 1, 1984, added "religious," after "church," and deleted "orphanage," after "exhibition," in subdivision (a)(1), (a)(2), and (a)(3). Stats. 1984, Ch. 144, in effect January 1, 1985, substituted "the" for "such" throughout the section, and deleted "the provisions of" after "under" in subdivision (b), after "notwithstanding" in subdivision (c), and after "sought," in subdivision (d). Stats. 1995, Ch. 499, in effect January 1, 1996, substituted "lien date in" for "first day of March of" after "before the" and substituted "imposed upon:" for "thereon-" in the first paragraph, substituted "Property" for "Imposed upon property" at the beginning of paragraphs (1), (2), and (3), and substituted a period for a semicolon at the end of paragraphs (1) and (2) in subdivision (a); and substituted "that" for "such" and "which" throughout the section. Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, added "tribal housing," after "veterans' organization," in paragraphs (1), (2), and (3) of subdivision (a). Stats. 2003, Ch. 316 (AB 1744), in effect January 1, 2004, substituted "within 90 days from the first day of the month following the month in which the property was acquired or by February 15 of the following calendar year, whichever occurs earlier," for "on or before the lien date in the calendar year next succeeding the calendar year in which the property was acquired," after "exemption is filed" in the first paragraph of subdivision (a), and substituted "that" for "which" after "or interest thereon" in the first sentence of subdivision (d).

Note.—Section 5 of Stats. 1983, Ch. 312, provided that no appropriation is made for the purpose of making reimbursement. Sec. 6 thereof provided that this act does not contain a repealer and shall remain in effect unless and until amended or repealed by a later enacted act.

Validity.—Subdivision (a)(3) providing for a proportionate refund with respect to taxes on property acquired after taxes had become a lien by an organization qualified for the welfare exemption, is not unconstitutional as depriving the taxing agency of its allegedly vested interest in the taxes, or as resulting in a gift of public funds or property in violation of Article XVI, Section 6 of the Constitution. Community Television of So. Cal. v. Los Angeles County, 44 Cal.App.3d 990.

271.5. Sale of property receiving exemption. (a) In the event that property receiving the college, cemetery, church, religious, exhibition, veterans' organization, tribal housing, or welfare exemption is sold or otherwise transferred, the exemption shall cease to apply on the date of that sale or transfer. A new exemption shall be available subject to the provisions of Section 271.

(b) Termination of the exemption under this section shall result in an escape assessment of the property pursuant to Section 531.1.

History.—Added by Stats. 2011, Ch. 351 (SB 947), in effect January 1, 2012.

Back to top


272. Action by assessor. Notwithstanding any other provision of law, whenever a valid application for exemption on the property is filed pursuant to Section 270 or 271 and the assessor grants the claim prior to the completion of the roll for the year for which the exemption is claimed, the assessor shall enroll the property so as to provide for the amount of exemption on the property's assessed value as provided by the applicable section.

When the application for exemption on the property or the granting of the claim occurs after completion of the roll, the assessor shall initiate an action to correct the roll by addition of the appropriate amount of exemption on the property. Upon notification by the assessor, the auditor shall make the appropriate adjustment on the roll.

Where authorized under the provisions of this article, the tax, penalty or interest thereon subject to cancellation or refund shall be canceled pursuant to Article 1 (commencing with Section 4985) of Chapter 4 of Part 9, as if it had been levied or charged erroneously, and, if paid, a refund thereof shall be made pursuant to Article 1 (commencing with Section 5096) of Chapter 5 of Part 9 as if it had been erroneously collected. The amount of tax, penalty or interest which is not canceled or refunded under this article with respect to property tax exemptions covered by this article and filed late may be paid in installments as provided in Chapter 3 (commencing with Section 4186) of Part 7.

History.—Stats. 1983, Ch. 119, in effect January 1, 1984, substituted "that" for "such" after "for" and deleted "to the board of supervisors" after "action" in the first sentence, and substituted "Upon notification by the assessor" for "If approved" at the beginning of the second sentence of the second paragraph; and deleted "of this division" after "Part 9" in the first sentence and deleted "of Division 1" after "Part 7" in the second sentence of the third paragraph. Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, added "on the property" after "application for exemption", and substituted "grants the claim" for "receives the board finding pursuant to Section 254.5" after "the assessor" in the first sentence of the first paragraph; and substituted "on the property or the granting of the claim occurs" for "or the finding of the board for that application is received" after "application for exemption" in the first sentence of the second paragraph.

273. Veterans' exemption; cancellation of tax. If a claimant for the veterans' exemption fails to file the affidavit required by Section 255 because he or she was in the military service of the United States and serving outside of the United States between the lien date and 5 o'clock p.m. on February 15 of any year, the veterans' exemption may be claimed pursuant to Section 252 or 253 without regard to the time limit specified in Section 255. If the veterans' exemption is claimed pursuant to the preceding sentence, any tax, or penalty or interest thereon for any fiscal year commencing during the calendar year in which the exemption is claimed, on property to the amount of one thousand dollars ($1,000) owned by the person to whom the veterans' exemption was available for that fiscal year, shall be canceled or refunded.

History.—Stats. 1997, Ch. 941 (SB 542), in effect January 1, 1998, substituted "affidavit required by" for "required affidavit pursuant to" after "file the", added "or she" after "he", deleted "continental limits of the" before "United States", substituted "February" for "April" after "5 o'clock p.m. on", added a period after "in Section 255" and deleted "and any tax" after "in Section 255" in the first sentence, and added "If the . . . any tax," to the balance of the former first sentence to create the second sentence, substituted "the" for "that" before "calendar", added "in which . . . claimed," after "calendar year", substituted "the" for "such" after "owned by", substituted "to whom" for "as to which" after "person", and substituted "that" for "such" after "available for" in the newly created second sentence.

Back to top


273.5. Veterans' exemption; partial cancellation of tax. (a) If a claimant for the veterans' exemption for the 1976–77 fiscal year or any year thereafter fails to file the required affidavit with the assessor by 5 p.m. on February 15 of the calendar year in which the fiscal year begins, but files that claim on or before the following December 10, an exemption of the lesser of three thousand two hundred dollars ($3,200) or 80 percent of the full value of the property shall be granted by the assessor.

(b) On those claims filed pursuant to subdivision (a) after November 15, this exemption may be applied to the second installment, and if applied to the second installment, the first installment will still become delinquent on December 10, and the delinquent penalty provided for in this division will attach if the tax amount due is not paid.

If this exemption is applied to the second installment and if both installments are paid on or before December 10, or if the reduction in taxes from this exemption exceeds the amount of taxes due on the second installment, a refund shall be made to the taxpayer upon a claim submitted by the taxpayer to the auditor.

History.—Added by Stats. 1976, Ch. 111, p. 172, in effect April 9, 1976. Secs. 2 and 3 thereof provided no payment by state to local governments because of this act. Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981, substituted "three thousand two hundred dollars ($3,200) or 80 percent of the full" for "eight hundred dollars ($800) or 80 percent of the assessed" in the first paragraph. Stats. 1983, Ch. 1281, in effect September 30, 1983, substituted "the delinquent penalty provided for in this division" for "a 6-percent penalty" before "will attach" in the first paragraph of subdivision (b). Stats. 1994, Ch. 1222, in effect January 1, 1995, substituted "that" for "such" after "but files" and substituted "10" for "1" after "December" in subdivision (a) and substituted "those" for "such" after "On" in the first paragraph of subdivision (b). Stats. 1997, Ch. 941 (SB 542), in effect January 1, 1998, substituted "February" for "April" after "5 p.m. on" in the first sentence of subdivision (a).

275. Homeowners' exemption; partial cancellation of tax. (a) If a claimant for the homeowners' property tax exemption fails to file the required affidavit with the assessor by 5 p.m. on February 15 of the calendar year in which the fiscal year begins, but files that affidavit on or before the following December 10, an exemption of the lesser of five thousand six hundred dollars ($5,600) or 80 percent of the full value of the dwelling shall be granted by the assessor.

(b) On claims filed pursuant to subdivision (a) after November 15, this partial homeowners' exemption may be applied to the second installment, and if applied to the second installment, the first installment will still become delinquent on December 10 and the delinquent penalty provided for in this division will attach if the tax amount due is not paid.

If this partial homeowners' exemption is applied to the second installment and if both installments are paid on or before December 10 or if the reduction in taxes from this partial exemption exceeds the amount of taxes due on the second installment, a refund shall be made to the taxpayer upon a claim submitted by the taxpayer to the auditor.

History.—Added by Stats. 1974, Ch. 60, p. 131, in effect March 12, 1974. Sec. 15 thereof provided no payment by state to local governments because of this act. Stats. 1974, Ch. 1107, p. 2368, in effect September 23, 1974, operative with respect to the 1974–75 fiscal year and thereafter, substituted "an exemption of the lesser of one thousand four hundred dollars ($1,400) or 80 percent of the assessed value of the dwellings" for "80 percent of the homeowners' exemption" in the first sentences of subdivisions (a) and (b); substituted subdivision (c) for the former subdivision (c); and substituted "taxpayer" for "county tax collector" in the first sentence of the last paragraph. Sec. 20 thereof provided no payment by state to local governments because of this act. Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981, deleted former subdivisions (a) and (b), relettered subdivisions (c) as (a) and (d) as (b), deleted "for the 1975–76 fiscal year or any year thereafter" after the first "exemption", and substituted "three thousand two hundred dollars ($3,200)" for "one thousand four hundred dollars ($1,400)" and "full" for "assessed" before "value" in subdivision (a); deleted "(b) or (c)" after "(a)" and substituted "to" for "of" in subdivision (b). Stats. 1983, Ch. 1281, in effect September 30, 1983, substituted "the delinquent penalty provided for in this division" for "a 6-percent penalty" before "will attach" in the first paragraph of subdivision (b). Stats. 1992, Ch. 523, in effect January 1, 1993, deleted "o'clock" after "5", substituted "that affidavit" for "such claims" after "files", and substituted "10" for "1" after "December" in subdivision (a); and deleted "such" after "On" in the first paragraph of subdivision (b). Stats. 1997, Ch. 941 (SB 542), in effect January 1, 1998, substituted "February" for "April" after "5 p.m. on" in the first sentence of subdivision (a).

Back to top


275.5. Documented vessel; partial cancellation of tax. If a person claiming classification of a vessel as a documented vessel eligible for assessment under Section 227 fails to file the affidavit required by Section 254 by 5 p.m. on February 15 of the calendar year in which the fiscal year begins, but files that affidavit on or before the following August 1, the assessment shall be reduced in a sum equal to 80 percent of the reduction that would have been allowed had the affidavit been timely filed.

History.—Added by Stats. 1980, Ch. 411, in effect July 11, 1980, operative January 1, 1981. Stats. 1997, Ch. 941 (SB 542), in effect January 1, 1998, substituted "by" for "pursuant to" after "required", substituted "5 p.m." for "5:00 p.m." afer "Section 254 by", substituted "February" for "April" after "5 p.m. on", and substituted "that" for "such" after "but files" in the first sentence. Stats. 1998, Ch. 695 (SB 2235), in effect January 1, 1999, substituted "February 15" for "February 1" after "5 p.m. on" in the first sentence.

276. Disabled veterans' exemption; partial cancellation of tax. [Repealed by Stats. 1980, Ch. 172, effective December 31, 1981.]

276. Disabled veterans' exemption; partial cancellation of tax. [Repealed by Stats. 2000, Ch. 922 (AB 2567), in effect September 29, 2000.]

276. Disabled veterans' exemption; partial cancellation of tax. (a) Except as otherwise provided by subdivision (b), for property for which the disabled veterans' exemption described in Section 205.5 was available, but for which a timely claim was not filed, a partial exemption shall be applied in accordance with whichever of the following is applicable:

(1) Ninety percent of any tax, including any interest or penalty thereon, levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate claim shall be canceled or refunded, provided that an appropriate claim for exemption is filed after 5 p.m. on February 15 of the calendar year in which the fiscal year begins but on or before the following December 10.

(2) If an appropriate claim for exemption is filed after the time period specified in paragraph (1), 85 percent of that portion of any tax, including any interest or penalty thereon, that was levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate claim, shall be canceled or refunded. Cancellations made under this paragraph are subject to the provisions of Article 1 (commencing with Section 4985) of Chapter 4. Refunds issued under this paragraph are subject to the limitations periods on refunds as described in Article 1 (commencing with Section 5096) of Chapter 5.

(b) If a late-filed claim for the one-hundred-fifty-thousand-dollar ($150,000) exemption is filed in conjunction with a timely filed claim for the one-hundred-thousand-dollar ($100,000) exemption, the amount of any exemption allowed under the late-filed claim under subdivision (a) shall be determined on the basis of that portion of the exemption amount, otherwise available under subdivision (a), that exceeds one hundred thousand dollars ($100,000).

(c) For those claims filed pursuant to subdivision (a) after November 15, the exemption under that subdivision may be applied to the second installment. If that exemption is so applied, the first installment is still delinquent on December 10, and is subject to delinquent penalties provided for in this division if that installment is not timely paid. A refund shall be made to the taxpayer upon a claim submitted to the auditor if the exemption is applied to the second installment and either of the following is true:

(1) Both installments are paid on or before December 10.

(2) The reduction in taxes resulting from the exemption exceeds the amount of taxes due on the second installment.

History.—Added by Stats. 2000, Ch. 922 (AB 2562), in effect September 29, 2000, and added by Stats. 2000, Ch. 1085 (SB 1362), in effect September 30, 2000, which added the second sentence to subdivision (a)(2), and restated, without substantive change, subdivision (b). Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, deleted the former second sentence of subparagraph (2) of subdivision (a), which provided that "Cancellations or refunds made or issued under this paragraph are subject to the limitations periods on refunds as described in Section 5096.", and added the second and third sentences of subparagraph (2) of subdivision (a). Stats. 2009, Ch. 67 (SB 824), in effect January 1, 2010, substituted "Section 4985" for "Section 4895" after "commencing with" in the second sentence of paragraph (2) of subdivision (a); and substituted "late-filed" for "late filed" after "If a", deleted "sixty-thousand-dollar ($60,000) exemption is filed in conjunction with a timely filed claim for the forty-thousand-dollar ($40,000) exemption, or if a late filed claim for the" after the first "claim for the", and deleted "forty thousand dollars ($40,000) or" after "that exceeds" in the first sentence of subdivision (b). Stats. 2010, Ch. 328 (SB 1330), in effect January 1, 2011, deleted ", as applicable" after "($100,000)" in the first sentence of subdivision (b).

Note.—Section 5 of Stats. 2000, Ch. 922 (AB 2562), and Section 9 of Stats. 2000, Ch. 1085 (SB 1362), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Back to top


276.1. Disabled veterans' exemption; delayed disability rating. (a) For property for which the disabled veterans' exemption described in Section 205.5 would have been available but the taxpayer had not yet received a disability rating from the United States Department of Veterans Affairs (USDVA), there shall be canceled or refunded the amount of any taxes, including any interest and penalties thereon, subject to the provisions regarding cancellations in Article 1 (commencing with Section 4985) of Chapter 4 and the limitations periods on refunds as described in Article 1 (commencing with Section 5096) of Chapter 5, levied on that portion of the assessed value of the property that would have been exempt under a timely and appropriate claim, provided that the claimant files an appropriate claim for the disabled veterans' exemption described in Section 205.5 the later of 90 days of receipt of the disability rating from the USDVA or on or before the next following lien date.

(b) Subject to the provisions regarding cancellations and the limitations periods on refunds, the disabled veterans' exemption shall apply beginning on the effective date, as determined by the USDVA, of a disability rating that qualifies the claimant for the exemption.

History.—Added by Stats. 2000, Ch. 1085 (SB 1362), in effect September 30, 2000. Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, added "subject to the provisions . . . of Chapter 5," after "and penalties thereon," in the first sentence of the first paragraph and added "the later of 30 days . . . the USDVA or" after "in Section 205.5" in the first sentence of subdivision (b). Stats. 2006, Ch. 677 (SB 1637), in effect January 1, 2007, lettered the former first paragraph as subdivision (a) and designated former subdivisions (a) and (b) as new paragraph (1) and (2) thereof and added new subdivision (b). Stats. 2010, Ch. 150 (AB 2314), in effect January 1, 2011, substituted the "taxpayer had not yet received a" for "for the taxpayer's failure to receive a timely" after "available but" and deleted "meets both of the following conditions:" after "the claimant" in the first sentence of subdivision (a), deleted former paragraph (1) which provided that "The claimant had an application pending with the USDVA for a disability rating and subsequently received a rating that qualifies the claimant for the disabled veterans' exemption described in Section 205.5.", deleted "(2) The claimant subsequently" from the first sentence of former paragraph (2), added the balance of the sentence to the first sentence of subdivision (a) after "the claimant" and substituted "90" for "30" after "the later of" therein; and substituted "shall apply" for "applies" after "veterans' exemption" in the first sentence of subdivision (b).

Note.—Section 9 of Stats. 2000, Ch. 1085 (SB 1362), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

276.2. Disabled veterans' exemption; property acquired after lien date. (a) If property becomes eligible for the disabled veterans' exemption as described in Section 205.5 after the lien date, and an appropriate application for that exemption is filed on the later of 90 days after the date on which the property became eligible or on or before the next following lien date, there shall be canceled or refunded the amount of any taxes, including any interest and penalties thereon, levied on that portion of the assessed value of the property that would have been exempt under a timely and appropriate application.

(b) The entire amount of the exemption applies to any property tax assessment, including a supplemental and escape assessment, that was made and that served as a lien against the property. The exemption amount shall be appropriately prorated from the date the property became eligible for the exemption.

History.—Added by Stats. 2000, Ch. 922 (AB 2562), in effect September 29, 2000, and added by Stats. 2000, Ch. 1085 (SB 1362), in effect September 30, 2000. Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, added "or but for that . . . on that date," after "after the lien date," and added "or resided in as the principal place of residence" after "property was acquired" in the first sentence of the first paragraph. Stats. 2006, Ch. 677 (SB 1637), in effect January 1, 2007, lettered the former first paragraph as subdivision (a), added "property becomes eligible for" after "If", deleted "would have been available for a property, but for that property being acquired by a person eligible for the exemption only" after "in Section 205.5", deleted "or but for that property being owned by a person eligible for the exemption on the lien date but not residing on the property on that date," after "the lien date," and substituted "became eligible" for "was acquired or resided in as the principal place of residence" after "in which the property" in the first sentence therein and added subdivision (b). Stats. 2011, Ch. 351 (SB 947), in effect January 1, 2012, substituted "the later of 90 days after the date on" for "or before the lien date in the calendar year next following the calendar year in" after "filed on" and added "or on or before the next following lien date" after "became eligible" in the first sentence of subdivision (a).

Note.—Section 5 of Stats. 2000, Ch. 922 (AB 2562), and Section 9 of Stats. 2000, Ch. 1085 (SB 1362), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Back to top


276.3. Disabled veterans' exemption; property transferred after lien date. (a) In the event that property receiving a disabled veterans' exemption as described in Section 205.5 is sold or otherwise transferred to a person who is not eligible for that exemption, the exemption shall cease to apply on the date of that sale or transfer.

(b) In the event that property receiving a disabled veterans' exemption as described in Section 205.5 is no longer used by a claimant as his or her principal place of residence, the exemption shall cease to apply on the date the claimant terminates his or her residency at that location.

(c) Termination of the exemption under this section shall result in an escape assessment of the property pursuant to Section 531.1.

History.—Added by Stats. 2000, Ch. 922 (AB 2562), in effect September 29, 2000, and added by Stats. 2000, Ch. 1085 (SB 1362), in effect September 30, 2000. Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, designated the former first paragraph as subdivision (a) and substituted "who" for "that" after "to a person" in the first sentence therein, and added subdivisions (b) and (c).

Note.—Section 5 of Stats. 2000, Ch. 922 (AB 2562), and Section 9 of Stats. 2000, Ch. 1085 (SB 1362), provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

276.5. Aircraft of historical significance; partial cancellation of tax. If a person claiming the exemption of an aircraft of historical significance under Section 220.5 fails to file the affidavit required by that section by 5 p.m. on February 15 of the fiscal year for which the exemption is claimed, but files that affidavit on or before the following August 1, the assessment shall be reduced by an amount equal to 80 percent of the reduction that would have been allowed had the affidavit been timely filed.

History.—Added by Stats. 2003, Ch.604 (SB 1059), in effect January 1, 2004.

277. Disabled veterans' exemption; affidavit. Any person claiming the disabled veterans' property tax exemption shall file a claim with the assessor giving any information required by the board. This information shall include, but shall not be limited to, the name of the person claiming the exemption, the person's social security number or another personal identifying number, the address of the property, and a statement to the effect that the claimant owned and occupied the property as his or her principal place of residence on the lien date, or that he or she intends to own and occupy the property as his or her principal place of residence on the next succeeding lien date, and proof of disability as defined by Section 205.5.

History.—Added by Stats. 1975, Ch. 662, p. 1451, in effect September 10, 1975. Stats. 2006, Chap. 677 (SB 1637), in effect January 1, 2007, substituted "file a claim with the assessor" for "make a return of the property to the assessor, the same as property is listed for taxation, and shall accompany it by an affidavit," after "tax exemption shall" in the first sentence, substituted "This" for "Such" before "information shall include", added "the person's social security number or another personal identifying number," after "claiming the exemption," added "or her" twice after "property as his" and added "or she" after "or that he" in the second sentence.

Note.—Section 7 of Stats. 1975, Ch. 662, provided that no appropriation shall be made pursuant to Section 3 of this act because there are minor savings as well as minor costs in this act which, in the aggregate, do not result in significant identifiable cost changes.

Back to top


278. Disabled veterans' exemption; assessor annual notice. Prior to the lien date, the assessor shall annually mail a notice to all disabled veterans who received the disabled veterans' exemption in the immediately preceding year, except where such person has transferred title in the property since the immediately preceding lien date. The notice shall inform the taxpayer of the requirements that must be met in order to be eligible for the exemption, of the penalties if the taxpayer allows the exemption to continue when he or she is not eligible for the exemption, and of his or her duty to inform the assessor when he or she is no longer eligible for the exemption.

History.—Added by Stats. 1975, Ch. 662, p. 1451, in effect September 10, 1975. Stats. 1986, Ch. 608, effective January 1, 1987, deleted the first paragraph pertaining to requirements for the 1976–77 fiscal year. Stats. 2011, Ch. 351 (SB 947), in effect January 1, 2012, substituted "Prior to the lien date, the assessor shall annually mail a notice to all claimants" for "For the 1977-78 fiscal year and thereafter, county assessors shall each year mail a notice to all disabled veterans" before "who received" in the first sentence and added "or she" after "when he" twice and added "or her" after "of his" in the second sentence of the first paragraph.

Note.—Section 7 of Stats. 1975, Ch. 662, provided that no appropriation shall be made pursuant to Section 4 of this act because there are minor savings as well as minor costs in this act which, in the aggregate, do not result in significant identifiable cost changes.

279. Disabled veterans' exemption; effective dates. (a) Subject to the provisions regarding cancellations and the limitation periods on refunds, property becomes eligible for the disabled veterans' property tax exemption, as described in Section 205.5, as of:

(1) The effective date of a disability rating, as determined by the United States Department of Veterans Affairs that qualifies the claimant for the exemption.

(2) The date a qualified claimant purchases a property that constitutes the principal place of residence, provided residency is established within 90 days of purchase.

(3) The date a qualified claimant establishes residency at a property owned by the claimant or the spouse, as specified in subdivision (a) of Section 205.5.

(4) The date the veteran died, as a result of a service-connected injury or disease, in the case where the unmarried surviving spouse is the claimant.

(b) A claim for the disabled veterans' property tax exemption filed by a qualified claimant, once granted, shall remain in continuous effect unless any of the following occurs;

(1) Title to the property changes.

(2) The owner does not occupy the dwelling as his or her principal place of residence.

(A) If the claimant is confined to a hospital or other care facility but principally resided at a dwelling immediately prior to that confinement, the claimant will be deemed to occupy that same dwelling as his or her principal place of residence on the lien date, provided that the dwelling has not been rented or leased as described in Section 205.5.

(B) If a person receiving the disabled veterans' exemption is not occupying the dwelling because the dwelling was damaged in a misfortune or calamity, the person will be deemed to occupy that same dwelling as his or her principal place of residence, provided the person's absence from the dwelling is temporary and the person intends to return to the dwelling when possible to do so. Except as provided in subparagraph (C), when a dwelling has been totally destroyed, and thus no dwelling exists, the exemption provided by Section 205.5 is not applicable until the structure has been replaced and is occupied as a dwelling.

(C) A dwelling that was totally destroyed in a disaster for which the Governor proclaimed a state of emergency, that qualified for the exemption provided by Section 205.5 and has not changed ownership since the disaster, will be deemed occupied by the person receiving a disabled veterans' exemption provided the person intends to reconstruct a dwelling on the property and occupy the dwelling as his or her principal place of residence when it is possible to do so.

(3) The property is altered so that it is no longer a dwelling.

(4) The veteran is no longer disabled as defined in Section 205.5.

(5) The unmarried surviving spouse claimant remarries.

(c) The assessor of each county shall verify the continued eligibility of each person receiving a disabled veterans' exemption, and shall provide for a periodic audit of, and establish a control system to monitor, disabled veterans' exemption claims.

History.—Added by Stats. 1975, Ch. 662, p. 1451, in effect September 10, 1975. Stats. 2003, Ch. 278 (AB 322), in effect September 4, 2003, lettered the former first paragraph as subdivision (a), added "described in Section 205.5" after "property tax exemption" deleted "as defined in Section 205.5," after "of a dwelling," and substituted "in continuous effect unless any of the following occurs: (1) Title to the property changes. (2) The owner does not occupy the dwelling as his or her principal place of residence on the lien date. For purposes of this paragraph, if a veteran is, on the lien date, confined to a hospital or other care facility but principally resided at a dwelling immediately prior to that confinement, the veteran will be deemed to occupy that same dwelling as his or her principal place of residence on the lien date, provided that the dwelling has not been rented or leased as described in Section 205.5. (3) The property is altered so that it is no longer a dwelling. (4) The veteran is no longer disabled as defined in Section 205.5." for "effect until such time as title to the property changes, the owner does not occupy the home as his principal place of residence on the lien date, or the property is altered so that it is no longer a dwelling as defined in Section 205.5, or the veteran is no longer disabled as defined in Section 205.5." therein; and lettered the former second paragraph as subdivision (b), substituted "each" for "the" after "The assessor of", deleted "in which such a dwelling is situated" after "of each county", added "continued" after "shall verify the", substituted "person" for "who is" after "each" and substituted ", and shall provide for a periodic audit of, and establish a control system to monitor," for "to continue to receive such an exemption in accordance with rules and regulations, which shall be issued by the board, to provide for a periodic audit and for the establishment of a control system for the" after "disabled veterans' exemption" in the first sentence therein. Stats. 2008, Ch. 594 (SB 1495), in effect January 1, 2009, substituted a colon for a semicolon after "the following occurs" in the first sentence of subdivision (a) and designated the former second sentence of paragraph (2) as the first sentence of subparagraph (A) and substituted "If" for "For purposes of this paragraph, if" before "a veteran is" therein, and added subparagraphs (B) and (C) thereto. Stats. 2011, Ch. 202 (AB 188), in effect January 1, 2012, added subdivision (a); relettered former subdivision (a) as (b) and substituted "filed by a qualified claimant" for "described in Section 205.5 filed by the owner of a dwelling" after "tax exemption" in the first sentence of the first paragraph, deleted "on the lien date" after "of residence" in the first sentence of paragraph (2), and substituted "the claimant is" for " a veteran is, on the lien date" after "If" and substituted "claimant" for "veteran" after "confinement, the" in the first sentence of subparagraph (A), and deleted "on the lien date" after "the dwelling" and after "of residence" in the first sentence and deleted "on the lien date" after "dwelling exists" in the second sentence of subparagraph (B), and deleted "on the lien date" after "veterans' exemption" in the first sentence of subparagraph (C) and added paragraph (5) thereto; and relettered former subdivision (b) as (c).

Note.—Section 7 of Stats. 1975, Ch. 662, provided that no appropriation shall be made pursuant to Section 5 of this act because there are minor savings as well as minor costs in this act which, in the aggregate, do not result in significant identifiable cost changes.

Note.—Section 1 of Stats. 2003, Ch. 278 (AB 322) provided that:

(a) The Legislature of the State of California finds and declares the following:

(1) The California Constitution allows the Legislature to establish an exemption from property taxes for the home of a disabled veteran or the spouse of a disabled veteran, including the unmarried surviving spouse of a disabled veteran.

(2) A disabled veteran is defined by law as a veteran who, because of an injury incurred in military service is blind in both eyes, has lost the use of two or more limbs, is totally disabled, or who, as a result of service-connected injury, died while in active military service.

(3) The Revenue and Taxation Code authorizes a property tax exemption for property owned by a disabled veteran, if that property constitutes the principal place of residence of the disabled veteran.

(4) The Revenue and Taxation Code also authorizes a property tax exemption for property owned by an unmarried surviving spouse of a disabled veteran, if that property constitutes the principal place of residence of the unmarried surviving spouse.

(5) There are many disabled veterans who own property that qualifies for the disabled veterans' property tax exemption, but due to the fact that these disabled veterans are confined to hospitals or other medical institutions they are unable to occupy that property as their principal place of residence. In many cases the spouses of these disabled veterans continue to occupy the property as their principle place of residence.

(b) It is the intent of the Legislature in enacting this act to amend the Revenue and Taxation Code to conform with the California Constitution to further extend the disabled veterans' property tax exemption to property owned by the spouse of a living disabled veteran while that disabled veteran is confined to a hospital or other care facility and to extend the veterans' property tax exemption to an otherwise qualifying veteran who is unable to occupy that property as his or her principal place of residence because he or she is confined to a hospital or other care facility, provided that the property is not rented or leased to a third party.

Section 4 thereof provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

Section 5 thereof provided that this act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.

Back to top


279.5. Disabled veterans' exemption; ineligible property. The taxpayer who has filed a claim for the disabled veterans' exemption, once granted, is responsible for notifying the assessor when the property is no longer eligible for the exemption.

Upon any indication that a disabled veterans' exemption has been incorrectly allowed, the assessor shall make a redetermination of eligibility for the disabled veterans' exemption. If the assessor determines that the property is no longer eligible for the exemption, he shall immediately cancel the exemption on the property.

If a disabled veterans' exemption has been incorrectly allowed, an escape assessment as allowed by Section 531.1 in the amount of the exemption with interest as provided in Section 506 shall be made, except where the exemption was allowed as the result of the assessor's error, in which case the amount of interest shall be forgiven. If the exemption was incorrectly allowed because of erroneous or incorrect information submitted by the claimant with knowledge that such information was erroneous or incomplete or because the claimant failed to notify the assessor in a timely manner that the property was no longer eligible for the exemption, the penalty provided in Section 504 shall be added to the assessment. If the property subject to this paragraph has been transferred or conveyed to a bona fide purchaser for value during the period commencing with the lien date and ending July 1 of the fiscal year for which such exemption was incorrectly allowed, and the claimant is not the purchaser, any amount of penalty provided by Section 504 or any amount of interest provided by Section 506 imposed pursuant to the escape assessment due to such incorrect disabled veterans' exemption shall be forgiven. If the property subject to this paragraph has been transferred or conveyed to a bona fide purchaser for value after July 1 of the fiscal year for which the exemption was incorrectly allowed, and the claimant is not the purchaser, the escape assessment shall be levied in accordance with Section 531.2.

History.—Added by Stats. 1975, Ch. 662, p. 1452, in effect September 10, 1975. Stats. 1980, Ch. 411, in effect July 11, 1980, operative January 1, 1981, substituted "531.1" for "531.2", added "except where the exemption was allowed as the result of the assessor's error, in which case the amount of interest shall be forgiven." in the first sentence of, "in a timely manner" to the second sentence of, and added the last two sentences to the third paragraph.

Note.—Section 7 of Stats. 1975, Ch. 662, provided that no appropriation shall be made pursuant to Section 6 of this act because there are minor savings as well as minor costs in this act which, in the aggregate, do not result in significant identifiable cost changes.

Back to top


Article 3. Audit of Veterans' Exemption Claims*

* Article 3 was added by Stats. 1967, p. 1213, in effect November 8, 1967.

280. Audit of exemptions. Commencing on or after July 1, an audit of the exemptions granted pursuant to subdivision (o), (p), (q) or (r) of Section 3, Article XIII of the Constitution shall be conducted by the auditor. The audit shall cover such exemptions claimed for the current tax year as well as any prior tax years in respect to which escaped assessments would be timely pursuant to Section 532.

History.—Stats. 1967, p. 3336, in effect November 8, 1967, amended this section, as added by Ch. 148, by substituting section "532" for "531.5." Stats. 1974, Ch. 311, p. 603, in effect January 1, 1975, substituted "subdivision (o), (p), (q) or (r) of Section 3" for "Section 11/4" in the first sentence.

281. Audit procedures. The auditor shall determine the procedures and the extent of auditing required.

282. Veteran or spouse to testify on written demand. If the information is not made available through the assessor, the auditor may make written demand to the veteran or his spouse to appear and testify and to produce papers, including books, accounts, and documents germane to the claimed exemption, for the purpose of verifying entitlement to the exemption.

The auditor shall have access at any reasonable time to all records in the assessor's office, germane to the audit.

Back to top


282.5. Exemption denied on refusal to testify. If a taxpayer refuses to comply with a written demand made pursuant to Section 282, the exemption shall be disallowed and, if an exemption has previously been allowed, an assessment pursuant to Section 531.1 shall be made.

History.—Added by Stats. 1967, p. 3336, in effect November 8, 1967. Stats. 1968, p. 2000, in effect November 13, 1968, substituted "531.1" for "531.5".

283. Procedure on improper denial of exemption. Should the audit prescribed by this article indicate that a claim of exemption pursuant to subdivision (o), (p), (q), or (r) of Section 3, Article XIII of the Constitution has been improperly denied, the assessor shall be notified. Upon receipt of such notice the assessor shall make a redetermination and if he finds the claimant eligible he shall notify the claimant in the manner provided in Section 1605 of such erroneous determination, effect an amendment of the assessment roll, and if the claimant has already paid the tax he shall have 30 days from receipt of such notice in which to file claim pursuant to Article 1 (commencing with Section 5096), Chapter 5, Part 9 of this division. The notice shall advise the time in which claim may be filed.

History.—Stats. 1974, Ch. 311, p. 603, in effect January 1, 1975, substituted "subdivision (o), (p), (q) or (r) of Section 3" for "Section 11/4" in the first sentence. Stats. 1976, Ch. 1079, p. 4883, in effect January 1, 1977, substituted "1605" for "1604.1" in the second sentence.

284. Notice to assessor of improper exemption. Should the audit prescribed by this article indicate that a veteran's exemption has been incorrectly allowed, the assessor shall be notified.

285. Article to apply on the lien date following adoption by county board. The provisions of this article shall not apply in any county unless a resolution is adopted by the board of supervisors declaring this article effective within the county.

Upon adoption of a resolution as so described, this article shall become operative in the county on the lien date next following the date of adoption. It shall remain effective within the county unless repealed by resolution of the board of supervisors.

History.—Stats. 1995, Ch. 499, in effect January 1, 1996, substituted "a resolution as so described," for "such a resolution" after "adoption of" and substituted "the lien date" for "March 1," after "county on" in the first sentence of the second paragraph.

286. "Auditor" defined. As used in this article "auditor" means the auditor, auditor-controller, or director of finance of a county.

Back to top