Organizational Clearance Organizational Clearance Certificate Certificate (OCC)(OCC)

RequirementsRequirements Must file OCC claim with Board of EqualizationMust file OCC claim with Board of Equalization

http://www.boe.ca.gov/proptaxes/pdf/boe277.pdfhttp://www.boe.ca.gov/proptaxes/pdf/boe277.pdf

Articles of Incorporation filed with California Secretary of StateArticles of Incorporation filed with California Secretary of State

Tax letter from Internal Revenue Service or Franchise Tax Tax letter from Internal Revenue Service or Franchise Tax BoardBoard

Annual financial statements (income statement and balance Annual financial statements (income statement and balance sheets)sheets)

Documentation supporting exempt activity (e.g., pamphlets, Documentation supporting exempt activity (e.g., pamphlets, brochures, etc.)brochures, etc.)

A claim for an Organizational Clearance certificate should be filed A claim for an Organizational Clearance certificate should be filed with the Board of Equalization as soon as the organization with the Board of Equalization as soon as the organization acquires taxable property that will be used for exempt activityacquires taxable property that will be used for exempt activity

Claims may be filed with the Board of Equalization at any time Claims may be filed with the Board of Equalization at any time during the yearduring the year

Organizational Clearance Certificate claim forms:Organizational Clearance Certificate claim forms:

www.boe.ca.gov/proptaxes/pdf/boe277.pdfwww.boe.ca.gov/proptaxes/pdf/boe277.pdf

Welfare Exemption ClaimWelfare Exemption ClaimRequirementsRequirements

A claim for Welfare Exemption is filed with Assessor where property is A claim for Welfare Exemption is filed with Assessor where property is located (forms are often available on Assessor’s website)located (forms are often available on Assessor’s website)

Organization may file for Welfare Exemption before receiving Organization may file for Welfare Exemption before receiving Organizational Clearance CertificateOrganizational Clearance Certificate

Requires valid Organizational Clearance Certificate for Assessor to grant Requires valid Organizational Clearance Certificate for Assessor to grant exemptionexemption

Also file Supplemental Affidavit forms if:Also file Supplemental Affidavit forms if:

Low Income HousingLow Income Housing

Elderly/Disabled HousingElderly/Disabled Housing

RehabilitationRehabilitation List other organizations using propertyList other organizations using property Requires annual filingRequires annual filing

Welfare Exemption ClaimWelfare Exemption Claim File for each locationFile for each location

Effective January 1, 2009, exempt activity must commence Effective January 1, 2009, exempt activity must commence within 180 days of acquisition of property (Property acquired within 180 days of acquisition of property (Property acquired prior to January 1, 2009, must have qualified within prior to January 1, 2009, must have qualified within 9090 days) days)

Assessor will perform site visitAssessor will perform site visit

After the first filing, Welfare Exemption claims are due After the first filing, Welfare Exemption claims are due annually by February 15annually by February 15

Retroactive FilingRetroactive Filing

Exemption may apply from date property was acquiredExemption may apply from date property was acquired

May file for up to 4 prior yearsMay file for up to 4 prior years

Maximum late-filing penalty for retroactive filing is $250 per Maximum late-filing penalty for retroactive filing is $250 per year, per propertyyear, per property

Late-filing penalty is deducted from any refundLate-filing penalty is deducted from any refund

A Welfare Exemption claim is required for each year A Welfare Exemption claim is required for each year exemption is soughtexemption is sought