Ways to Save on Your Taxes

Church Exemption

The Church Exemption may be claimed on property (real or personal) that is owned, leased or rented by religious organizations who use the property exclusively for worship services.

If another church also uses the property for worship services, the user church must also apply for the church exemption. If any other outside use is allowed on the property, other than religious worship, the owner church and outside operator will need to file a welfare exemption claim.

First-time church exemption claimants need to submit:

• Church exemption claim form
• Copy of certified Articles of Incorporation
• Tax letter evidencing exemption from either the State Franchise Tax Board or the Internal Revenue Service
• If leased property, a copy of the lease agreement is required. A reduction of property taxes on leased property granted the church exemption shall be for the benefit of the church.

Time for Filing:

• Annual filing period is between January 1 and February 15.
• 90% of the exemption is available if filed after February 15 but prior to the following January 1.
• 85% of the exemption is available if filed after January 1 of the next calendar year, subject to the four-year statute of limitations for refunds of taxes paid.
• Tax, penalty and interest for a given year may not exceed $250.

Newly Acquired Property:

• Property acquired after the January 1 tax lien date may be eligible for exemption provided that the property be put to exempt use or under construction for exempt use within 180 days after the date of acquisition.
• To receive the exemption, claims must be filed ninety days after the first day of the month following the month in which the property was acquired or by February 15th of the following year, whichever occurs first.
• A late filing penalty, not to exceed $250 will be applied to claims received after the deadline.

Publications:

The following publications are available for download on the State Board of Equalization’s website:

• Publication 48: Property Tax Exemptions for Religious Organizations(PDF: 189 kB)
• Publication 149: Property Tax Welfare Exemption(PDF: 289 kB)
• Assessor’s Handbook Section 267 Welfare, Church, and Religious Exemptions(PDF: 411 kB)

If you are interested in applying for this exemption, please download the claim form below:

Church Exemption Application(PDF: 256 kB)

For more information, or for assistance completing and submitting the form, please visit our offices or contact us.