Form Boe-267 - Instructions For Claim For Welfare Exemption (First Filing)

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BOE-267 (P3) REV. 14 (10-16)
INSTRUCTIONS FOR CLAIM FOR WELFARE EXEMPTION (FIRST FILING)
EXEMPTION FROM PROPERTY TAXES UNDER SECTIONS 4(b) AND 5 OF ARTICLE XIII OF THE CONSTITUTION OF THE
STATE OF CALIFORNIA AND SECTIONS 214, 254.5 AND 259.5 OF THE REVENUE AND TAXATION CODE
(See also sections 213.7, 214.01-214.1, 215.2, 221-222.5, 225.5, 231, 236, 254-254.6, 259.5, 261, and 270-272 of the Revenue and Taxation Code)
FILING OF CLAIM
A claim for the Welfare Exemption must be filed with the Assessor by the organization owning the property or, in the case where the real property is
leased from a public owner (any local, state, or federal government agency), by the lessee organization having a taxable possessory interest
1
in the real
property. Real property includes land and improvements. An officer or duly authorized representative of the organization filing the claim must sign the
claim form. A separate claim form must be completed and filed for each property location for which exemption is being sought.
The organization filing the claim must provide information on all uses of the property, including information on use by other organizations or persons.
Each claim must contain supporting documents, including financial statements.
ORGANIZATIONAL CLEARANCE CERTIFICATE
An organization seeking the Welfare Exemption shall file with the State Board of Equalization (Board) a claim for an Organizational Clearance Certificate
(OCC). The Board reviews each claim to determine whether the organization meets the requirements of Revenue and Taxation Code section 214
2
and
issues a certificate to claimants that meet these requirements. The Assessor may not approve a property tax exemption claim until the claimant has been
issued a valid OCC. However, your organization may file a claim for exemption with the Assessor, even if the claimant has not yet received the certificate
from the Board. If the claim is filed timely with the Assessor, the claim will be considered timely filed even if the claimant has not yet received the OCC
from the Board.
To request an OCC, nonprofit organizations must file BOE-277 and limited liability companies must file BOE-277-LLC. These forms are available on the
Board’s website ( ) or by contacting the Exemptions Section at 1-916-274-3430.
RECORDATION REQUIREMENT
Section 261 requires that an organization claiming the Welfare Exemption for its real property must have recorded its ownership interest as of the lien
date (12:01 a.m., January 1) in the recorder’s office of the county in which the property is located. A claimant 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 recordation 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. Failure to establish the fact of such recordation to the Assessor constitutes a waiver of the exemption.
TIME FOR FILING
To receive the full exemption, the claimant must file a claim each year on or before February 15. Only 90 percent of any tax or penalty or interest
thereon may be canceled or refunded when a claim is filed between February 16 of the current year and January 1 of the following calendar year; if the
application is filed thereafter, only 85 percent of any tax or penalty or interest thereon may be canceled or refunded. (For real property acquired after
the January 1 lien date, to receive full exemption, the claim must be 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. Refer to section 271.) The combined tax, penalty and
interest may not exceed $250.
BOARD-PRESCRIBED FORMS REFERENCED ON THE CLAIM FORM AND IN THE INSTRUCTIONS
BOE-267-A, 20___ Claim For Welfare Exemption (Annual Filing)
BOE-267-H, Welfare Exemption Supplemental Affidavit, Housing – Elderly Or Handicapped Families
BOE-267-L, Welfare Exemption Supplemental Affidavit, Housing – Lower Income Households
BOE-267-L1, Welfare Exemption Supplemental Affidavit, Low-Income Housing Property Of Limited Partnership
BOE-267-O, Welfare Exemption Supplemental Affidavit, Organizations And Persons Using Claimant’s Real Property
BOE-267-R, Welfare Exemption Supplemental Affidavit, Rehabilitation – Living Quarters
BOE-277, Claim For Organizational Clearance Certificate – Welfare Exemption
BOE-277-LLC, Claim For Organizational Clearance Certificate – Welfare Exemption – Limited Liability Company
ADDITIONAL INFORMATION
In accordance with Revenue and Taxation Code section 254.5(b)(2), the assessor may institute an audit or verification of the property’s use to determine
whether both the owner and user of the property meet the requirements of Revenue and Taxation Code section 214.
________________________________
1
A taxable possessory interest is defined as the taxable interest held by a private possessor in publically owned real property. (See Assessors’ Handbook, Section 510,
Assessment of Taxable Possessory Interests (Dec. 2002), page 1.)
2
All further statutory references are to the Revenue and Taxation Code, unless otherwise specified.

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