INSTRUCTIONS FOR FILING LESSORS’ EXEMPTION CLAIM
IMPORTANT NOTICE
A qualifying institution is one whose property is used for free public libraries and free museums, and for property used
exclusively for public schools, community colleges, state colleges, state universities, University of California, churches,
and nonprot colleges.
Failure to submit the lessee’s afdavit will result in denial of the exemption for the lessor. Submission of the lessee’s afdavit
after the date the claim form is due (for taxpayers not required to le a property statement) or after the last day for ling the
lessor’s property statement without penalty under section 463 of the Revenue and Taxation Code (for taxpayers required to
le a property statement) will result in a portion of the exemption being denied. A Lessee’s Afdavit is not required for free
public library or free museum exemption.
A sample afdavit is included as page 3 of this form.
IDENTIFICATION OF APPLICANT
Enter your company or organization information.
FISCAL YEAR
The scal year for which an exemption is sought must be entered correctly. The proper scal year follows the lien date (12:01
a.m., January 1) as of which the taxable or exempt status of the property is determined. For example, a person ling a timely
claim in February 2017 would enter “2017-2018” on line five of the claim; a “2016-2017” entry on a claim filed in
February 2017 would signify that a late claim was being filed for the preceding fiscal year. The lease must be in effect and
the property in use on lien date of the fiscal year for which the exemption is sought. Lessors' Exemptions cannot be
prorated based on the commencement date of the lease.
USES OF PROPERTY
Check each of the types of property being claimed, and state the primary and incidental uses of the property.
Enter the name and address of the lessee. If additional space is required, or if more than one lessee is being listed, attach
an itemized list.
Confirm, by checking the appropriate box, that the lease confers upon the lessee the exclusive right to possession and use
of the property, except for free public libraries and free museums.
Check the appropriate box regarding property statement reporting. If you own taxable personal property in any county whose
aggregate cost is $100,000 or more for any assessment year, you must file a property statement with the Assessor of that
county whether or not specifically requested to do so. Any person not otherwise required to file a statement shall do so
upon request of the Assessor, regardless of aggregate cost.
Check the appropriate box to indicate whether the affidavit is attached or will be submitted with the property statement.
If the property, or a portion thereof, for which exemption is claimed is a student bookstore that generates unrelated
business taxable income as defined in section 512 of the Internal Revenue Code, property taxes are determined by
establishing a ratio of the unrelated business taxable income to the bookstore’s gross income.
PROPERTY TAX BENEFITS
Property tax benefits claimed herein must be passed on to the lessee in the form of:
(1) Reduction in rental payments (sections 202.2 and 206.2, Revenue and Taxation Code).
(2) Refund of rental payments, if paid (sections 202.2 and 206.2, Revenue and Taxation Code).
(3) Claim by lessee under the provisions of section 5096, Revenue and Taxation Code, for a refund of taxes paid by a
lessor (section 202.2, Revenue and Taxation Code).
Note: Where the lessee files a claim for an exemption and reports leased property, such property will be allowed
the exemption if used in an exempt manner.
BOE-263 (P2) REV. 12 (06-17)
