Laws, Regulations & Annotations

W

880.0000 WELFARE EXEMPTION

(a) IN GENERAL

Annotation 880.0062

880.0062 Construction in Progress. The demolition of the building on the parcel with the intent to replace it with low-income housing, facilities to be used exclusively for charitable purposes, constitutes “facilities in the course of construction” for purposes of Revenue and Taxation Code section 214.2(a). Absent evidence to indicate that construction would not be ongoing as of a particular lien date, the parcel would be eligible for the welfare exemption for that fiscal year, assuming a complete and timely claim for the exemption was filed and was followed by commencement of a new building or improvement. Such commencement may be evidenced by trenching or definite onsite physical activity. While there is no statutory timeframe within which commencement of a new building or improvement must take place after demolition, we are of the opinion that, absent any other evidence to the contrary, commencement of a building or improvement on a parcel within a year of demolition meets the definition of “facilities in the course of construction.” C 1/3/2012.