Ways to Save on your Taxes

Religious Exemption

The Religious Exemption may be claimed on real property or personal property that is either:

• Owned by a religious organization which uses the property exclusively for religious worship services, or
• Used for the conduct of worship services and on which a religious organization operates its own preschool, nursery school, kindergarten, schools of less than collegiate grade, or schools of both collegiate grade and less than collegiate grade.

The religious exemption is also available if another church is permitted to use the property part-time for religious worship and/or to operate a school described above, provided the owner church conducts worship services on the property. Both the owner and user of the property must file for the Religious Exemption.

Property used for school purposes only (i.e., property on which the owner does not conduct worship services) does not qualify for the Religious Exemption, but may qualify for the Welfare Exemption.

If another qualifying organization uses all or part of the facility for religious or charitable purposes on a regular basis, then the property is not eligible for the religious exemption, and the welfare exemption must be claimed by both the church and the other organization.

First-time religious exemption claimants need to submit:

• Religious 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

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.

Once granted, the exemption remains in effect until terminated or until the property is no longer eligible for the exemption.

The Assessor annually mails form BOE 267-S Notice, Religious Exemption Change in Eligibility or Termination Notice to all recipients of the exemption in the prior year. This notice should be returned by February 15. Failure to notify the Assessor when the property is no longer eligible for exemption may result in an escaped assessment, interest, and a penalty of up to $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 15^th 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:

Religious Exmption (PDF: 198 kB)

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