The Church Exemption may be claimed on property owned, leased, or rented by a religious organization and used exclusively for religious worship services. It is the most restrictive of the three exemptions available to a church since the organization's property must be used solely for religious worship and other activities reasonably necessary for the accomplishment of the church's religious purposes.
Leased Property
For leased property, any reduction in property taxes on leased property used exclusively for religious worship and granted the Church Exemption must benefit the church or religious organization entitled to the exemption. If a church owns and uses property, and also allows another church to use that property, both churches must file Church Exemption claim forms.
The owner/lessor may file a Lessor's Exemption Claim form (BOE-263). The user/lessee church must complete the affidavit stating that the user/lessee church uses the property only for religious worship.
Real Property – Parking Area
All real property that is necessarily and reasonably required for the parking of automobiles of persons who are attending religious services or are engaged in religious services or worship or any religious activity is exempt from taxation.
Filing Requirements
Pursuant to Revenue and Taxation Code § 254, in order to apply for the Church Exemption, a claim form must be filed each year with the Assessor. To receive the full exemption for property owned or leased on the January 1 lien date, the claim must be filed by February 15.
Late Exemption Claims
If a person claiming the exemption fails to file the claim form by 5 p.m. on February 15 of the fiscal year for which the exemption is claimed, but files the form on or before the January 1 lien date in the next calendar year, the assessment will be reduced by an amount equal to 90% of the reduction that would have been allowed had the claim form been timely filed; or the assessment will be reduced by an amount equal to 85% of the reduction that would have been allowed, had the claim form been timely filed the following calendar year.
