In general, the Lessor's Exemption is available on certain types of leased property, when the exemption of property taxes benefits the lessee institution in the form of rental reduction or a refund. The Lessor's Exemption is available to property that is leased, as of the lien date, January 1, for the following uses (see Revenue and Taxation Code section 202.2):
- Public libraries that are free and open to the public
- Museums that are free and open to the public
- Leased property used exclusively for public schools, community colleges, state colleges, or state universities, including the University of California.
- Leased property used exclusively for educational purposes by a nonprofit institution of higher education.
Additionally, section 206.2, allows the Lessor's Exemption on property used exclusively for religious worship, including church parking for congregations of 500 or less.
The claimant must annually file a claim form with the county assessor of the county in which the property is located. The lessor, claimant, must provide all information required and answer all questions contained in the claim form, BOE-263, Lessor's Exemption Claim, on an annual basis. A lessee's affidavit attesting, under penalty of perjury, that the property is used exclusively for the qualifying purpose must also be submitted (a sample affidavit is located on the reverse side of the BOE-263 claim form). The claim must be filed between January 1 and February 15 in order to receive 100 percent of the exemption for the following fiscal year.
The following link provides additional information on the Lessor's Exemption.