Ways to Save on your Taxes

Welfare Exemption

The Welfare Exemption is available to qualifying non-profit organizations that are religious, hospital, scientific or charitable in nature, and:

• Own their own property (real or personal) and use the property exclusively for exempt purposes
• Use exempt property owned by another qualifying organization who is already receiving a welfare exemption
• Use government-owned property

An organization must meet the following requirements:

• It must be organized and operated for exempt purposes.
• It must not be organized for profit.
• It must have a valid Organizational Clearance Certificate issued by the California State Board of Equalization.
• The owner organization must have an IRC § 501(c)(3) or Revenue and Taxation Code 23701d letter of exemption.
• The user organization may also qualify with an IRC § 501(c)(4) or Revenue and Taxation Code 23701f or 23701w letter
• The organization's earnings must not benefit any private shareholder or individual

If you are a first-time welfare exemption claimant, please contact us at (707) 565-1881.

Annual Filing:

• Annual filing period to receive the full exemption 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:

Welfare Exemption(PDF: 262 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.