Amended in Senate March 25, 2014

Senate BillNo. 1323


Introduced by Senator Lieu

February 21, 2014


An act to amendbegin delete Section 257.1end deletebegin insert Sections 75.21, 206.1, 254, 254.5, 255, 257, 257.1, 270, 271, and 276end insert of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 1323, as amended, Lieu. Propertybegin delete taxation: religious exemption: renewal.end deletebegin insert taxation.end insert

begin insert

Existing property tax law allows taxes, penalties, and interest imposed for late filings of certain property tax exemption applications to be canceled or refunded in an amount equal to 90% or 85%, as applicable, of any tax, penalty, or interest or any amount of tax, penalty, or interest exceeding $250, whichever is greater.

end insert
begin insert

This bill would instead require 90% of any tax, penalty, or interest resulting from the assessed value of the property or any amount of tax, penalty, or interest exceeding $200, whichever is greater, to be canceled or refunded, provided an appropriate application for exemption is thereafter filed. This bill would require this property tax relief to apply to each claim for exemption filed, and in the case where a claim for exemption is filed for a property location consisting of contiguous parcels, would authorize any tax or penalty or interest thereon resulting from the reduction of the amount of the exemption otherwise available to be applied to a single parcel.

end insert
begin insert

The California Constitution authorizes the Legislature to exempt from taxation property not used for commercial purposes that is reasonably and necessarily required for the parking of vehicles of persons worshiping on exempt land. Pursuant to this constitutional authorization, existing property tax law exempts from tax any real property that is reasonably and necessarily required for the parking of automobiles by persons engaged in religious activities, as specified. Existing property tax law provides that this exemption shall apply to land and improvements that are not owned by a church, religious denomination, or sect using the land and improvements for the parking of automobiles, provided that certain conditions are met, including, among others, that the congregation of the church, religious denomination, or sect is no greater than 500 members.

end insert
begin insert

This bill would modify this exemption to apply to any real property that is required for the parking of vehicles, and would remove the limitation that the congregation of the church, religious denomination, or sect be no greater than 500 members.

end insert
begin insert

Existing property tax law requires applicants for certain property tax exemptions to notify the assessor if the applicant or the property becomes ineligible for the exemption, as specified. Existing property tax law requires a penalty to be assessed for failure to provide this notification to the assessor in an amount not to exceed $250.

end insert
begin insert

This bill would reduce the $250 limitation on the penalty for failure to notify the assessor to $200.

end insert
begin insert

Existing property tax law requires any person claiming certain property tax exemptions and anyone claiming the classification of a vessel as a documented vessel eligible for assessment, as provided, to submit to the assessor annually an affidavit giving any information required by the board. Existing property tax law requires these affidavits to be filed with the assessor between the lien date and 5 p.m. on February 15.

end insert
begin insert

This bill would require the affidavit to be submitted for each property location for which the property tax exemption is sought, and would authorize any person claiming any exemption specified above to submit a single claim for a property location consisting of contiguous parcels. This bill would require an affidavit for the disabled veterans’ exemption to instead be filed with the assessor any time after the claimant becomes eligible but no later than 5 p.m. on February 15, except as otherwise provided.

end insert
begin insert

Existing property tax law requires a claim for certain property tax exemptions to be filed by a specified date with the assessor each year. Existing property tax law does not require applicants granted certain property tax exemptions to reapply for the exemption in any subsequent year in which there has been no change in the title to, or the use of, the property. Existing property tax law requires the assessor to annually mail a notice to every applicant relieved of the requirement of filing an annual application, as specified, which is required to include a card in a specified form, to be returned to the assessor by the applicant desiring to maintain eligibility for the exemption.

end insert
begin insert

This bill would instead require the State Board of Equalization to prescribe the form of the card included with the notice.

end insert
begin insert

By changing the manner in which property tax refunds for late filings of certain property tax exemptions are made by local county officials, this bill would impose a state-mandated local program.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert
begin insert

Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

end insert
begin insert

This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

end insert
begin delete

Existing property tax law establishes, pursuant to Constitutional authorization, a property tax exemption for property exclusively used for religious purposes. Existing law requires the assessor to annually mail a notice to every person who received the religious exemption for the previous fiscal year that includes specified information, including, the circumstances under which the property may no longer be eligible for exemption. Existing law requires the notice to include a card that is to be returned to the assessor with specified information, including, the signature and title of any person who desires to maintain eligibility for the exemption.

end delete
begin delete

This bill would additionally require a person claiming the exemption to include his or her printed name on the card to be returned to the assessor.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 75.21 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is amended to read:end insert

3

75.21.  

(a) Exemptions shall be applied to the amount of the
4supplemental assessment, provided that the property is not
5receiving any other exemption on either the current roll or the roll
6being prepared except as provided for in subdivision (b), that the
7assessee is eligible for the exemption, and that, in those instances
8in which the provisions of this division require the filing of a claim
9for the exemption, the assessee makes a claim for the exemption.

10(b) If the property received an exemption on the current roll or
11the roll being prepared and the assessee on the supplemental roll
12is eligible for an exemption and, in those instances in which the
13provisions of this division require the filing of a claim for the
14exemption, the assessee makes a claim for an exemption of a
15greater amount, then the difference in the amount between the two
16exemptions shall be applied to the supplemental assessment.

17(c) In those instances in which the provisions of this division
18require the filing of a claim for the exemption, except as provided
19in subdivision (d), (e), or (f), any person claiming to be eligible
20for an exemption to be applied against the amount of the
21supplemental assessment shall file a claim or an amendment to a
22current claim, in that form as prescribed by the board, on or before
23the 30th day following the date of notice of the supplemental
24assessment, in order to receive a 100-percent exemption.

25(1) With respect to property as to which the college, cemetery,
26church, religious, exhibition, veterans’ organization, free public
27libraries, free museums, or welfare exemption was available, but
28for which a timely application for exemption was not filed,begin delete the
29following amounts shall be canceled or refunded:end delete
begin insert 90 percent of
30any tax or penalty or interest resulting from the assessed value
31thereon, or any amount of tax or penalty or interest resulting from
32the assessed value thereon exceeding two hundred dollars ($200),
33whichever is greater, shall be canceled or refunded for each
34supplemental assessment, provided that an appropriate application
35for exemption is thereafter filed.end insert

begin delete

P5    1(A) Ninety percent of any tax or penalty or interest thereon, or
2any amount of tax or penalty or interest thereon exceeding two
3hundred fifty dollars ($250) in total amount, whichever is greater,
4for each supplemental assessment, provided that an appropriate
5application for exemption is filed on or before the date on which
6the first installment of taxes on the supplemental tax bill becomes
7delinquent, as provided by Section 75.52.

end delete
begin delete

8(B) Eighty-five percent of any tax or penalty or interest thereon,
9or any amount of tax or penalty or interest thereon exceeding two
10hundred fifty dollars ($250) in total amount, whichever is greater,
11for each supplemental assessment, if an appropriate application
12for exemption is thereafter filed.

end delete

13(2) With respect to property as to which the welfare exemption
14or veterans’ organization exemption was available, all provisions
15of Section 254.5, other than the specified dates for the filing of
16affidavits and other acts, are applicable to this section.

17(3) With respect to property as to which the veterans’ or
18homeowners’ exemption was available, but for which a timely
19application for exemption was not filed, that portion of tax
20attributable to 80 percent of the amount of exemption available
21shall be canceled or refunded, provided that an appropriate
22application for exemption is filed on or before the date on which
23the first installment of taxes on the supplemental tax bill becomes
24delinquent, as provided by Section 75.52.

25(4) With respect to property as to which the disabled veterans’
26exemption was available, but for which a timely application for
27exemption was not filed, that portion of tax attributable to 90
28percent of the amount of exemption available shall be canceled or
29refunded, provided that an appropriate application for exemption
30isbegin delete filed on or before the date on which the first installment of taxes
31on the supplemental tax bill becomes delinquent, as provided by
32Section 75.52. If an appropriate application for exemption is
33thereafter filed, 85 percent of the amount of the exemption available
34shall be canceled or refunded.end delete
begin insert thereafter filed.end insert

35(5) With respect to property as to which any other exemption
36was available, but for which a timely application for exemption
37was not filed,begin delete the following amounts shall be canceled or refunded:end delete
38begin insert 90 percent of any tax or penalty or interest resulting from the
39assessed value thereon, or any amount of tax or penalty or interest
40resulting from the assessed value thereon exceeding two hundred
P6    1dollars ($200), whichever is greater, shall be canceled or refunded,
2for each supplemental assessment, provided that an appropriate
3application for exemption is thereafter filed.end insert

begin delete

4(A) Ninety percent of any tax or penalty or interest thereon,
5provided that an appropriate application for exemption is filed on
6or before the date on which the first installment of taxes on the
7supplemental tax bill becomes delinquent, as provided by Section
875.52.

9(B) Eighty-five percent of any tax or penalty or interest thereon,
10or any amount of tax or penalty or interest thereon exceeding two
11hundred fifty dollars ($250) in total amount, whichever is greater,
12for each supplemental assessment, if an appropriate application
13for exemption is thereafter filed.

end delete

14Other provisions of this division pertaining to the late filing of
15claims for exemption do not apply to assessments made pursuant
16to this chapter.

17(d) For purposes of this section, any claim for the homeowners’
18exemption, veterans’ exemption, or disabled veterans’ exemption
19previously filed by the owner of a dwelling, granted and in effect,
20constitutes the claim or claims for that exemption required in this
21section. In the event that a claim for the homeowners’ exemption,
22veterans’ exemption, or disabled veterans’ exemption is not in
23effect, a claim for any of those exemptions for a single
24supplemental assessment for a change in ownership or new
25construction occurring on or after June 1, up to and including
26December 31, shall apply to that assessment; a claim for any of
27those exemptions for the two supplemental assessments for a
28change in ownership or new construction occurring on or after
29January 1, up to and including May 31, one for the current fiscal
30year and one for the following fiscal year, shall apply to those
31assessments. In either case, if granted, the claim shall remain in
32effect until title to the property changes, the owner does not occupy
33the home as his or her principal place of residence on the lien date,
34or the property is otherwise ineligible pursuant to Section 205,
35205.5, or 218.

36(e) Notwithstanding subdivision (c), an additional exemption
37claim may not be required to be filed until the next succeeding
38lien date in the case in which a supplemental assessment results
39from the completion of new construction on property that has
P7    1previously been granted exemption on either the current roll or the
2roll being prepared.

3(f) (1) Notwithstanding subdivision (c), an additional exemption
4claim is not required to be filed in the instance where a
5supplemental assessment results from a change in ownership of
6property where the purchaser of the property owns and uses or
7uses, as the case may be, other property that has been granted the
8college, cemetery, church, religious, exhibition, veterans’
9organization, free public libraries, free museums, or welfare
10exemption on either the current roll or the roll being prepared and
11the property purchased is put to the same use.

12(2) In all other instances where a supplemental assessment
13results from a change in ownership of property, an application for
14exemption shall be filed pursuant to the provisions of subdivision
15(c).

begin insert

16(g) The relief authorized under this section applies to each
17supplemental assessment for which an application for exemption
18is filed. If a claim for the exemption is filed for a property location
19consisting of contiguous parcels, and the assessor grants the claim
20for that property location, any tax or penalty or interest resulting
21from the reduction of the amount of the exemption otherwise
22available may be applied to a single parcel.

end insert
23begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 206.1 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
24amended to read:end insert

25

206.1.  

(a) Pursuant to the authority of subdivision (d) of
26Section 4 of Article XIII of the California Constitution, and in
27accordance with subdivision (b) of this section, all real property
28that is necessarily and reasonably required for the parking of
29begin delete automobilesend deletebegin insert vehiclesend insert of persons who are attending religious
30services, or are engaged in religious services or worship or any
31religious activity, is exempt from taxation.

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

34(1) “Real property” means land and improvements or a
35possessory interest in land and improvements.

36(2) The real property is not required to be contiguous to the land
37on which the church or other structure used for religious services
38or as the place of worship or religious activity is located.

39(3) The real property is not at other times used for commercial
40purposes. For purposes of this paragraph, “commercial purposes”
P8    1does not include use of the property for the parking of vehicles or
2bicycles, the revenue from which does not exceed the ordinary
3and necessary costs of maintaining the real property.

4(4) The exemption shall apply to otherwise qualifying land and
5improvements regardless of whether the land and improvements
6are owned by the church, religious denomination, or sect using the
7land and improvements for the parking ofbegin delete automobilesend deletebegin insert vehiclesend insert
8 by persons described in subdivision (a). However, the exemption
9shall apply to land and improvements that are not owned by the
10church, religious denomination, or sect using the land and
11improvements for the parking ofbegin delete automobilesend deletebegin insert vehiclesend insert by persons
12described in subdivision (a) only as long as all of the following
13conditions are met:

begin delete

14(A) The congregation of the church, religious denomination, or
15sect is no greater than 500 members.

end delete
begin delete

16(B)

end delete

17begin insert(A)end insert The church, religious denomination, or sect is engaged in
18a lease of the land and improvements for the exclusive purpose of
19the parking ofbegin delete automobilesend deletebegin insert vehiclesend insert by persons described in
20subdivision (a).

begin delete

21(C)

end delete

22begin insert(B)end insert The church, religious denomination, or sect is responsible,
23under the terms of its lease with the fee owner of the land and
24improvements, for paying the property taxes levied on the land
25and improvements. For purposes of this subparagraph, paying
26property taxes levied on land and improvements includes
27reimbursement paid to the fee owner of the land and improvements
28for those taxes.

begin delete

29(D)

end delete

30begin insert(C)end insert The real property is used exclusively for the parking of
31begin delete automobilesend deletebegin insert vehiclesend insert by persons described in subdivision (a).

begin delete

32(E)

end delete

33begin insert(D)end insert The fee owner of the real property and the county agree that
34the fee owner shall pay the total amount of taxes that would be
35levied on the real property for the current fiscal year and the first
36two subsequent fiscal years in the absence of a grant of exemption
37pursuant to this paragraph for the current fiscal year, if the real
38property is used for any purpose other than that specified in
39subparagraphbegin delete (D)end deletebegin insert (C)end insert during either of those two subsequent fiscal
40years.

P9    1begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 254 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
2amended to read:end insert

3

254.  

begin insert(a)end insertbegin insertend insertbegin insert(1) end insertbegin insertend insertAny person claiming the church, cemetery,
4college, exhibition, welfare, veterans’ organization, free public
5libraries, free museums, aircraft of historical significance, tribal
6housing, or public schools property tax exemption and anyone
7claiming the classification of a vessel as a documented vessel
8eligible for assessment under Section 227, shall submit to the
9assessor annually an affidavit, giving any information required by
10the board.

begin insert

11(2) The affidavit required pursuant to subdivision (a) shall be
12 submitted for each property location for which the property tax
13exemption is sought.

end insert
begin insert

14(b) Any person claiming any exemption specified in subdivision
15(a) may submit a single claim for a property location consisting
16of contiguous parcels.

end insert
17begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 254.5 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
18amended to read:end insert

19

254.5.  

(a) Claims for the welfare exemption and the veterans’
20organization exemption shall be filed on or before February 15 of
21each year with the assessor.

22The assessor may not approve a property tax exemption claim
23until the claimant has been issued a valid organizational clearance
24certificate pursuant to Section 254.6. Financial statements shall
25be submitted only if requested in writing by the assessor.

26(b) (1) The assessor shall review all claims for the welfare
27exemption to ascertain whether the property on which the
28exemption is claimed meets the requirements of Section 214. The
29assessor shall also review all claims for the veterans’ organization
30exemption to ascertain whether the property on which the
31exemption is claimed meets the requirements of Section 215.1. In
32this connection, the assessor shall consider, among other matters,
33whether:

34(A) Any capital investment of the owner or operator for
35expansion of a physical plant is justified by the contemplated return
36thereon, and required to serve the interests of the community.

37(B) The property on which the exemption is claimed is used for
38the actual operation of an exempt activity and does not exceed an
39amount of property reasonably necessary to the accomplishment
40of the exempt purpose.

P10   1(2) The assessor may institute an audit or verification of the
2operations of the owner or operator of the applicant’s property to
3ascertain whether both the owner and operator meet the
4requirements of Section 214.

5(c) (1) The assessor may deny a claim for the welfare exemption
6on a property, notwithstanding that the claimant has been granted
7an organizational clearance certificate by the board.

8(2) If the assessor finds that the claimant’s property is ineligible
9for the welfare exemption or the veterans’ organization exemption,
10the assessor shall notify the claimant in writing of all of the
11following:

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

13(B) That the claimant may seek a refund of property taxes paid
14by filing a refund claim with the county.

15(C) That if the claimant’s refund claim with the county is denied,
16the claimant may file a refund action in superior court.

17(d) Notwithstanding subdivision (a), an applicant, granted a
18welfare exemption and owning any property exempted pursuant
19to Section 214.15 or Section 231, shall not be required to reapply
20for the welfare exemption in any subsequent year in which there
21has been no transfer of, or other change in title to, the exempted
22property and the property is used exclusively by a governmental
23entity or by a nonprofit corporation described in Section 214.15
24for its interest and benefit. The applicant shall notify the assessor
25on or before February 15 if, on or before the preceding lien date,
26the applicant became ineligible for the welfare exemption or if,
27on or before that lien date, the property was no longer owned by
28the applicant or otherwise failed to meet all requirements for the
29welfare exemption.

30Prior to the lien date, the assessor shall annually mail a notice
31to every applicant relieved of the requirement of filing an annual
32application by this subdivision.

33The notice shall be in a form and contain that information that
34the board may prescribe, and shall set forth the circumstances
35under which the property may no longer be eligible for exemption,
36and advise the applicant of the duty to inform the assessor if the
37property is no longer eligible for exemption.

38The notice shall include a cardbegin insert, as prescribed by the board,end insert that
39is to be returned to the assessor by any applicant desiring to
P11   1maintain eligibility for the welfare exemption under Section 214.15
2or Section 231.begin delete The card shall be in the following form:end delete

begin delete

3To all persons who have received a welfare exemption under
4Section 214.15 or Section 231 of the Revenue and Taxation Code
5for the ____ fiscal year.

6Question: Will the property to which the exemption applies in
7the ____ fiscal year continue to be used exclusively by government
8or by an organization as described in Section 214.15 for its interest
9and benefit in the ____ fiscal year?

101112YES ___  NO ___
13

14Signature: ____________

15Title: ________________

end delete

16Failure to return this card does not of itself constitute a waiver
17of exemption as called for by the California Constitution, but may
18result in onsite inspection to verify exempt activity.

19(e) Upon any indication that a welfare exemption or veterans’
20organization exemption on the property has been incorrectly
21granted, the assessor shall redetermine eligibility for the exemption.
22If the assessor determines that the property, or any portion thereof,
23is no longer eligible for the exemption, he or she shall immediately
24cancel the exemption on so much of the property as is no longer
25eligible for the exemption.

26(f) If a welfare exemption or veterans’ organization exemption
27on the property has been incorrectly allowed, an escape assessment
28as provided by Article 4 (commencing with Section 531) of Chapter
293 in the amount of the exemption, with interest as provided in
30Section 506, shall be made, and a penalty shall be assessed for any
31failure to notify the assessor as required by this section in an
32amount equaling 10 percent of the escape assessment, but may not
33exceed two hundredbegin delete fiftyend delete dollarsbegin delete ($250)end deletebegin insert ($200)end insert.

34(g) Pursuant to Section 15640 of the Government Code, the
35board shall review the assessor’s administration of the welfare
36exemption and the veterans’ organization exemption as part of the
37board’s survey of the county assessment roll to ensure the proper
38administration of the exemption.

39begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 255 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
40amended to read:end insert

P12   1

255.  

(a) Affidavits required for exemptions named in this
2article, except the homeowners’ exemptionbegin insert and the disabled
3veterans’ exemptionend insert
, shall be filed with the assessor between the
4lien date and 5 p.m. on February 15.

5(b) Affidavits for the homeowners’ exemption except as
6otherwise provided in Sections 255.1, 255.2, and 275, shall be
7filed with the assessor any time after the claimant becomes eligible
8but no later than 5 p.m. on February 15.

begin insert

9(c) Except as otherwise provided in Sections 276, 276.1, and
10276.2, affidavits for the disabled veterans’ exemption shall be filed
11with the assessor any time after the claimant becomes eligible for
12the exemption but no later than 5 p.m. on February 15.

end insert
begin delete

13(c)

end delete

14begin insert(d)end insert Notwithstanding the provisions of subdivision (a), any
15claimant who has been found ineligible for the church exemption
16or the religious exemption may file an affidavit for a welfare
17exemption. Affidavits for the welfare exemption filed pursuant to
18this subdivision shall be filed within 15 days from the date of
19notification by the assessor of the claimants’ ineligibility for the
20church exemption or the religious exemption.

21begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 257 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
22amended to read:end insert

23

257.  

(a) Any person claiming the religious exemption shall
24submit to the assessor an affidavit giving specific information
25relating to property tax exemption.

26(b) The affidavit shall show that:

27(1) The building, equipment, and land are used exclusively for
28religious purposes.

29(2) The land claimed as exempt is required for the convenient
30use of the building.

31(3) The property is owned by an entity organized and operating
32exclusively for religious purposes.

33(4) The entity is nonprofit.

34(5) No part of the net earnings inures to the benefit of any private
35individual.

36(c) Any exemption granted pursuant to a claim filed in
37accordance with this section, once granted, shall remain in effect
38until that time that title to the property changes or the property is
39no longer used for exempt purposes. Any person who is granted
40an exemption pursuant to a claim filed in accordance with this
P13   1section shall notify the assessor by February 15 if the property
2becomes ineligible for the exemption.

3(d) Upon any indication that a religious exemption has been
4incorrectly allowed, the assessor shall make a redetermination of
5eligibility for the religious exemption. If the assessor determines
6that the property or any portion thereof is no longer eligible for
7the exemption, he or she shall immediately cancel the exemption
8on so much of the property as is no longer eligible for exemption.

9If a religious exemption has been incorrectly allowed, an escape
10assessment as allowed by Article 4 (commencing with Section
11531) of Chapter 3 in the amount of the exemption with interest as
12provided in Section 506 shall be made, together with a penalty for
13failure to notify the assessor, where applicable, in the amount of
1410 percent of the assessment, but may not exceed two hundred
15begin delete fiftyend delete dollarsbegin delete ($250)end deletebegin insert ($200)end insert in tax liability.

16begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 257.1 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
17amended to read:end insert

18

257.1.  

For the 1983-84 fiscal year and fiscal years thereafter,
19the assessor shall annually, prior to the lien date, mail a notice to
20every person who received the religious exemption for the previous
21fiscal year.

22The notice shall be in a form and contain that information which
23the board may prescribe, and shall set forth the circumstances
24under which the property may no longer be eligible for exemption
25and advise the person of the duty to inform the assessor if the
26property is no longer eligible for exemption.

27The notice shall include a cardbegin delete whichend deletebegin insert, as prescribed by the board,
28thatend insert
is to be returned to the assessor by any person who desires to
29maintain eligibility for the religious exemption.begin delete That card shall be
30in the following form:end delete

begin delete31

 

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.

P14   6

 

end delete
7begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 270 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
8amended to read:end insert

9

270.  

(a) With respect to property as to which the college,
10cemetery, church, religious, exhibition, veterans’ organization,
11free public libraries, free museums, public schools, community
12colleges, state colleges, state universities, tribal housing, or welfare
13exemption was available but for which a timely application for
14exemption was notbegin delete filed:end delete

15begin delete(1)end deletebegin deleteend deletebegin deleteNinetyend deletebegin insert filed, 90end insert percent of any tax or penalty or interest
16begin insert resulting from the assessed valueend insert thereonbegin insert or any tax or penalty or
17interest resulting from the assessed value thereon exceeding two
18hundred dollars ($200) in total amount, whichever is greater,end insert
shall
19be canceled or refunded provided an appropriate application for
20exemption isbegin delete filed on or before the lien date in the calendar year
21next succeeding the calendar year in which the exemption was not
22claimed by a timely application.end delete
begin insert thereafter filed.end insert

begin delete

23(2) If the application is filed after the date specified in paragraph
24(1), 85 percent of any tax or penalty or interest thereon shall be
25canceled or refunded provided an appropriate application for
26exemption is filed and relief is not authorized under Section 214.01
27or 271.

end delete
begin delete

28(b) Notwithstanding the provisions of subdivision (a), any tax
29or penalty or interest thereon exceeding two hundred fifty dollars
30($250) in total amount shall be canceled or refunded provided it
31is imposed upon property entitled to relief under subdivision (a)
32for which an appropriate claim for exemption has been filed.

end delete
begin insert

33(b) The relief authorized under this section applies to each claim
34for exemption filed. In the case where a claim for exemption is
35filed for a property location consisting of contiguous parcels, and
36the assessor grants the claim for that property location, any tax
37or penalty or interest thereon resulting from the reduction of the
38amount of the exemption otherwise available may be applied to a
39single parcel.

end insert

P15   1(c) With respect to property as to which the welfare exemption
2or veterans’ organization exemption was available,begin delete all provisions
3ofend delete
Section 254.5, other than the specified dates for the filing of
4affidavits and other acts,begin delete areend deletebegin insert isend insert applicable to this section.

5begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 271 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
6amended to read:end insert

7

271.  

(a) Provided that an appropriate application for exemption
8is filed within 90 days from the first day of the month following
9the month in which the property was acquired or by February 15
10of the following calendar year, whichever occurs earlier, any tax
11or penalty or interestbegin insert resulting from the assessed valueend insert imposed
12upon:

13(1) Property owned by any organization qualified for the college,
14cemetery, church, religious, exhibition, veterans’ organization,
15tribal housing, or welfare exemption that is acquired by that
16organization during a given calendar year, after the lien date but
17prior to the first day of the fiscal year commencing within that
18calendar year, when the property is of a kind that would have been
19qualified for the college, cemetery, church, religious, exhibition,
20veterans’ organization, tribal housing, or welfare exemption if it
21had been owned by the organization on the lien date, shall be
22canceled or refunded.

23(2) Property owned by any organization that would have
24qualified for the college, cemetery, church, religious, exhibition,
25veterans’ organization, tribal housing, or welfare exemption had
26the organization been in existence on the lien date, that was
27acquired by it during that calendar year after the lien date in that
28year but prior to the commencement of that fiscal year, and of a
29kind that presently qualifies for the exemption and that would have
30so qualified for that fiscal year had it been owned by the
31organization on the lien date and had the organization been in
32existence on the lien date, shall be canceled or refunded.

33(3) Property acquired after the beginning of any fiscal year by
34an organization qualified for the college, cemetery, church,
35religious, exhibition, veterans’ organization, tribal housing, or
36welfare exemption and the property is of a kind that would have
37qualified for an exemption if it had been owned by the organization
38on the lien date, whether or not that organization was in existence
39on the lien date, shall be canceled or refunded in the proportion
P16   1that the number of days for which the property was so qualified
2during the fiscal year bears to 365.

3(b) begin deleteEighty-five end deletebegin insertNinety end insertpercent of any tax or penalty or interest
4begin insert resulting from the assessed valueend insert thereon imposed upon property
5that would be entitled to relief under subdivision (a) or Section
6214.01, except that an appropriate application for exemption was
7not filed within the time required by the applicable provision, shall
8be canceled or refunded provided that an appropriate application
9for exemption is filed after the last day on which relief could be
10granted under subdivision (a) or Section 214.01.

11(c) Notwithstanding subdivision (b), any tax or penalty or
12interestbegin insert resulting from the assessed valueend insert thereon exceeding two
13hundredbegin delete fiftyend delete dollarsbegin delete ($250)end deletebegin insert ($200)end insert in total amount shall be
14canceled or refunded provided it is imposed upon propertybegin insert that
15would beend insert
entitled to relief under subdivisionbegin delete (b) for whichend deletebegin insert (a)
16except thatend insert
an appropriatebegin delete claimend deletebegin insert applicationend insert for exemptionbegin delete has
17beenend delete
begin insert was notend insert filedbegin insert within the time period required by the applicable
18provision, so long as an appropriate claim for exemption has been
19filedend insert
.

begin insert

20(d) The relief authorized under this section applies to each claim
21for exemption filed. In the case where a claim for exemption is
22filed for a property location consisting of contiguous parcels, and
23the assessor grants the claim for that property location, any tax
24or penalty or interest thereon resulting from the reduction of the
25amount of the exemption otherwise available may be applied to a
26single parcel.

end insert
begin delete

27(d)

end delete

28begin insert(e)end insert With respect to property acquired after the beginning of the
29fiscal year for which relief is sought, subdivisions (b) and (c) shall
30apply only to that pro rata portion of any tax or penalty or interest
31begin insert resulting from the assessed valueend insert thereon that would have been
32canceled or refunded had the property qualified for relief under
33paragraph (3) of subdivision (a).

34begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 276 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
35amended to read:end insert

36

276.  

(a) Except as otherwise provided by subdivision (b), for
37property for which the disabled veterans’ exemption described in
38Section 205.5 was available, but for which a timely claim was not
39filed,begin delete a partial exemption shall be applied in accordance with
40whichever of the following is applicable:end delete

P17   1begin delete(1)end deletebegin deleteend deletebegin deleteNinetyend deletebegin insert 90end insert percent of any tax, including any interest or
2penalty thereon, levied upon that portion of the assessed value of
3the property that would have been exempt under a timely and
4appropriate claim shall be canceled or refunded, provided that an
5appropriate claim for exemption isbegin delete filed after 5 p.m. on February
615 of the calendar year in which the fiscal year begins but on or
7before the following December 10.end delete
begin insert thereafter filed.end insert

begin delete

8(2) If an appropriate claim for exemption is filed after the time
9period specified in paragraph (1), 85 percent of that portion of any
10tax, including any interest or penalty thereon, that was levied upon
11that portion of the assessed value of the property that would have
12been exempt under a timely and appropriate claim, shall be
13canceled or refunded. Cancellations

end delete

14begin insertCancellations end insertmade under thisbegin delete paragraphend deletebegin insert subdivisionend insert are subject
15to the provisions of Article 1 (commencing with Section 4985) of
16Chapter 4. Refunds issued under thisbegin delete paragraphend deletebegin insert subdivisionend insert are
17subject to the limitations periods on refunds as described in Article
181 (commencing with Section 5096) of Chapter 5.

19(b) If a late-filed claim for the one-hundred-fifty-thousand-dollar
20($150,000) exemption is filed in conjunction with a timely filed
21claim for the one-hundred-thousand-dollar ($100,000) exemption,
22the amount of any exemption allowed under the late-filed claim
23under subdivision (a) shall be determined on the basis of that
24portion of the exemption amount, otherwise available under
25subdivision (a), that exceeds one hundred thousand dollars
26($100,000).

27(c) For those claims filed pursuant to subdivision (a) after
28November 15, the exemption under that subdivision may be applied
29to the second installment. If that exemption is so applied, the first
30installment is still delinquent on December 10, and is subject to
31delinquent penalties provided for in this division if that installment
32is not timely paid. A refund shall be made to the taxpayer upon a
33claim submitted to the auditor if the exemption is applied to the
34second installment and either of the following is true:

35(1) Both installments are paid on or before December 10.

36(2) The reduction in taxes resulting from the exemption exceeds
37the amount of taxes due on the second installment.

38begin insert

begin insertSEC. 11.end insert  

end insert
begin insert

If the Commission on State Mandates determines that
39this act contains costs mandated by the state, reimbursement to
40local agencies and school districts for those costs shall be made
P18   1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.

end insert
3begin insert

begin insertSEC. 12.end insert  

end insert
begin insert

Notwithstanding Section 2229 of the Revenue and
4Taxation Code, no appropriation is made by this act and the state
5shall not reimburse any local agency for any property tax revenues
6lost by it pursuant to this act.

end insert
begin delete7

SECTION 1.  

Section 257.1 of the Revenue and Taxation Code
8 is amended to read:

9

257.1.  

For the 1983-84 fiscal year and fiscal years thereafter,
10the assessor shall annually, prior to the lien date, mail a notice to
11every person who received the religious exemption for the previous
12fiscal year.

13The notice shall be in a form and contain that information which
14the board may prescribe, and shall set forth the circumstances
15under which the property may no longer be eligible for exemption
16and advise the person of the duty to inform the assessor if the
17property is no longer eligible for exemption.

18The notice shall include a card which is to be returned to the
19assessor by any person who desires to maintain eligibility for the
20religious exemption. That card shall be in the following form:


21

 

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:  ______________

 

Print Name: ______________

 

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.

P18  38

 

end delete


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