2005 California Revenue and Taxation Code Sections 201-241 Article 1. Taxable and Exempt Property

201.  All property in this State, not exempt under the laws of the
United States or of this State, is subject to taxation under this
code.
201.1.  Property owned by a nonprofit entity, in which a transit
development board has the sole ownership interest in the entity,
shall be deemed to be property owned by the transit development board
for purposes of this division.  To the extent that the property is
possessed, or a claim to or right to possession of the property
exists, for other than public purposes, the interest shall be deemed
a possessory interest as defined in Section 107.
   It is the intent and purpose of this section to clarify Section 3
of Article XIII of the California Constitution and, therefore, this
section does not constitute a change in, but is declaratory of, the
existing law.  Furthermore, this section shall not be construed to
exempt, from ad valorem property taxation, property of any transit
development board located outside of its boundaries.
201.2.  (a) A nonprofit corporation which has contracted with the
board of supervisors pursuant to Section 25905, 25906, 25907, or
25908 of the Government Code for the conduct of an agricultural fair,
shall be deemed to be an agency of the county for purposes of this
part and for no other purpose, and county-owned property, including
possessory interests in that property, used or possessed by the
nonprofit corporation in the conduct of an agricultural fair shall be
exempt from taxation under subdivision (b) of Section 3 of Article
XIII of the State Constitution.
   (b) This section shall not be construed to exempt any
profit-making organization or concessionaire from any property tax,
including a property tax on a possessory interest, for the use of
property which is used by a nonprofit corporation for the conduct of
a fair.
201.3.  Property which is exclusively devoted to public purposes and
is owned by a nonprofit entity, in which a chartered city with a
population of over 750,000 and located in a county of the third class
has the sole ownership interest shall be deemed to be property owned
by the chartered city.
   This section shall not be construed to exempt from ad valorem
property taxation property of the chartered city located outside of
its boundaries.
201.4.  (a) The possessory interest of a nonprofit entity, solely
owned by the City of Palm Springs, in property which is located
wholly within the boundaries of an Indian reservation and owned by
the United States in trust for named Indian allottees, and which is
leased to the City of Palm Springs under a master lease a portion of
which for purposes of financing is subleased to a nonprofit entity,
and subleased by that nonprofit entity to the City of Palm Springs
which devotes that property exclusively to convention or related
public purposes, shall be deemed to be property owned by the City of
Palm Springs.
   (b) Property which is owned in fee by a nonprofit entity in which
the City of Palm Springs has the sole ownership interest, and leased
by that nonprofit entity to the City of Palm Springs which devotes
that property exclusively to convention or related public purposes,
shall be deemed to be property owned by the City of Palm Springs.
   (c) This section shall not be construed to exempt from ad valorem
property taxation any possessory interest in otherwise tax-exempt
property not devoted exclusively to convention or related public
purposes or any property or possessory interest in property of the
City of Palm Springs located outside of its boundaries.
201.5.  (a) Possessory interests in property acquired by or for the
California Pollution Control Financing Authority pursuant to Division
27 (commencing with Section 44500) of the Health and Safety Code,
whether in real or personal property, shall be subject to taxation
under this code.
   (b) If the amount determined pursuant to subdivision (a) is less
than the amount of tax which would have been imposed if the
participating party owned the pollution control facility, the
contract or lease between the California Pollution Control Financing
Authority and such party shall provide that the difference between
the amount of tax paid pursuant to subdivision (a) and the amount
determined on the basis of the full cash value of the property shall
be paid by such party to the tax collector for the taxing agency at
the same time as the property tax is paid.
201.6.  (a) Subject to subdivision (b), property that is exclusively
devoted to a public purpose and is owned by a nonprofit entity, the
property, assets, profits, and net revenues of which are irrevocably
dedicated to the Ventura Port District, shall be deemed to be
property that is owned by the Ventura Port District.
   (b) This section shall not be construed to exempt from ad valorem
property taxation, including, but not limited to, any ad valorem
property tax levied with respect to a possessory interest, either of
the following:
   (1) Any property owned by a profit-making organization or
concessionaire.
   (2) Any property of the Ventura Port District that is located
outside of the boundaries of that district.
202.  (a) The exemption of the following property is as specified in
subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of
the Constitution, except as otherwise provided in subdivision (a) of
Section 11 thereof:
   (1) Growing crops.
   (2) Property used for free public libraries and free museums.
   (3) Property used exclusively for public schools, community
colleges, state colleges, and state universities, including the
University of California.
   (4) Property belonging to this state, a county, or a city.
Property belonging to the State Compensation Insurance Fund is not
property belonging to this state.
   (b) The exemption described in paragraph (3) of subdivision (a)
shall apply to off-campus facilities owned or leased by an
apprenticeship program sponsor, if such facilities are used
exclusively by the public schools for classes of related and
supplemental instruction for apprentices or trainees which are
conducted by the public schools under Chapter 4 (commencing with
Section 3070) of Division 3 of the Labor Code.
   (c) Without prejudice to the right to assert an exemption
otherwise available under subdivision (a), (d), or (e) of Section 3
of Article XIII of the Constitution, a property tax under this
division shall be imposed upon that portion of the bookstore property
determined to be generating the unrelated business taxable income,
as defined in Section 512 of the Internal Revenue Code, to the extent
property is:
   (1) Owned by an educational institution of collegiate grade or
used by a nonprofit corporation operating a student bookstore
affiliated with such an educational institution, and
   (2) Is primarily devoted to bookstore use that produces income
that is taxable as unrelated business taxable income.
   This tax shall be determined by establishing a ratio of the
unrelated business taxable income to the bookstore's gross income as
defined by the Internal Revenue Code.  That percent shall be the
maximum percentage of such bookstore property on which a property tax
can be levied.
   At the end of a fiscal year when unrelated business income has
been generated, the nonprofit organization shall file with the
assessor copies of the organization's most recent tax return filed
with the Internal Revenue Service.
202.2.  Any reduction in property taxes on leased property used for
libraries and 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, or leased property used exclusively for educational
purposes by a nonprofit institution of higher education and granted
the exemption set forth in subdivision (d) or (e) of Section 3 of
Article XIII of the California Constitution shall inure to the
benefit of the lessee institution.  If the lessor claims the
exemption and if the lease or rental agreement does not specifically
provide that the exemption contained in subdivision (d) or (e) of
Section 3 of Article XIII is taken into account in fixing the terms
of the agreement, the lessee shall receive a reduction in rental
payments or a refund thereof, if already paid, in an amount equal to
the reduction in taxes.
   If the lessor does not claim the exemption on property eligible
for the exemption contained in subdivision (d) or (e) of Section 3 of
Article XIII, the lessee may file a claim for refund under Section
5096 with respect to taxes paid by the lessor on the property.  For
purposes of Sections 5097 and 5140, the lessee shall be deemed to be
the person who paid the tax, and the refund shall be made directly to
the lessee.  Notwithstanding the provisions of paragraph (1) of
subdivision (a) of Section 270, the full amount of tax paid by the
lessor shall be refunded to the lessee.
   Any refund granted pursuant to this part shall not be considered a
reduction in the sales price or gross receipts from the rental of
the property for purposes of Part 1 (commencing with Section 6001),
Part 1.5 (commencing with Section 7200), or Part 1.6 (commencing with
Section 7251).
202.5.  Personal property used exclusively in the performance of
activities authorized by Division 8 (commencing with Section 89000)
of the Education Code, whether by the college itself or by an
auxiliary nonprofit corporation or student body organization with
which the Director of Education has entered into a lease or contract
for the performance of such activities, is deemed property used
exclusively for public schools and shall be exempt from taxation.
   It is hereby declared that this section is not a change in the
present law but is a declaration of preexisting law.
202.6.  Personal property used exclusively in the performance of
activities authorized by Article 2 (commencing with Section 48930) of
Chapter 6 of Part 27 of Division 4 of, or Article 4 (commencing with
Section 76060) of Chapter 1 of Part 47 of Division 7  of the
Education Code by a student body organization acting pursuant to
those provisions, is deemed property used exclusively for public
schools and shall be exempt from taxation.
202.7.  Personal property owned or used by student governments of
the University of California or by nonprofit corporations operating
student book stores of colleges affiliated with the University of
California is, for purposes of this section, deemed property
belonging to this state and shall be exempt from taxation.
203.  (a) The college exemption is as specified in subdivision (e)
of Section 3 and Section 5 of Article XIII of the California
Constitution.
   (b) An educational institution of collegiate grade is an
institution incorporated as a college or seminary of learning that
requires for regular admission the completion of a four-year high
school course or its equivalent, and confers upon its graduates at
least one academic or professional degree, based on a course of at
least one year in flight test technology or flight test science, for
which the master's degree program has been approved by the California
Council for Private Postsecondary and Vocational Education or the
Bureau for Private Postsecondary and Vocational Education, on a
course of at least two years in liberal arts and sciences, or on a
course of at least three years in professional studies, such as law,
theology, education, medicine, dentistry, engineering, veterinary
medicine, pharmacy, architecture, fine arts, commerce, or journalism.
   (c) An educational institution of collegiate grade is not
conducted for profit when it is conducted exclusively for scientific
or educational purposes and no part of its net income inures to the
benefit of any private person.
   (d) Without prejudice to the right to assert an exemption
otherwise available under subdivision (a), (d), or (e) of Section 3
of Article XIII of the Constitution, a property tax under this
division shall be imposed upon that portion of the bookstore property
determined to be generating the unrelated business taxable income,
as defined in Section 512 of the Internal Revenue Code, to the extent
property is both of the following:
   (1) Owned by an educational institution of collegiate grade or
used by a nonprofit corporation operating a student bookstore
affiliated with an educational institution of collegiate grade.
   (2) Primarily devoted to bookstore use that produces income that
is taxable as unrelated business taxable income.
   This tax shall be determined by establishing a ratio of the
unrelated business taxable income to the bookstore's gross income as
defined by the Internal Revenue Code.  That percent shall be the
maximum percentage of the bookstore property on which a property tax
can be levied.
   At the end of a fiscal year when unrelated business income has
been generated, the nonprofit organization shall file with the
assessor copies of the organization's most recent tax return filed
with the Internal Revenue Service.
203.1.  Personal property owned or used by a nonprofit corporation
operating a student bookstore affiliated with an educational
institution, as defined in Section 203, is, for purposes of this
section, deemed property belonging to such educational institution
and shall be exempt from taxation.
203.5.  Property owned by the California School of Mechanical Arts,
California Academy of Sciences, or Cogswell Polytechnical College, or
held in trust for the Huntington Library and Art Gallery, or their
successors, shall be exempt from taxation as provided in subdivision
(c) of Section 4 of Article XIII of the Constitution.
204.  The cemetery exemption is as specified in subdivision (g) of
Section 3 of Article XIII of the Constitution.
205.  The veterans' exemption is as specified in subdivisions (o),
(p), (q), and (r) of Section 3 of Article XIII of the Constitution.
   The following are wars under subdivisions (o), (p), (q), and (r)
of Section 3 of Article XIII of the Constitution:
   (a) Revolutionary War, April 19, 1775-January 14, 1784.
   (b) Second War With England, June 18, 1812-February 17, 1815.
   (c) Black Hawk War, April 6, 1832-August 2, 1832.
   (d) War With Mexico, April 24, 1846-May 30, 1848.
   (e) Civil War, April 18, 1861-August 20, 1866.
   (f) War With Spain, April 21, 1898-April 11, 1899.
   (g) War in Philippines, April 11, 1899-July 4, 1902.
   (h) Chinese Relief Expedition, June 20, 1900-May 15, 1901.
   (i) Campaign against the Rogue River, Yakima, Nez Perce, and Snake
Indians in Oregon and Washington, 1855-1856.
   (j) Campaign against the Indians in southern Oregon and Idaho and
northern California and Nevada, 1865-1868.
   (k) Campaign against the Cheyennes, Arapahoes, Kiowas, and
Comanches in Kansas, Colorado, and Indian Territory, 1867-1869.
   (l) Modoc War, 1872-1873.
   (m) Campaign against the Apaches in Arizona, 1873.
   (n) Campaign against the Kiowas, Comanches, and Cheyennes in
Kansas, Colorado, Texas, Indian Territory, and New Mexico, 1874-1875.
   (o) Campaign against the Northern Cheyennes and Sioux, 1876-1877.
   (p) Nez Perce War, 1877.
   (q) Bannock War, 1878.
   (r) Campaign against the Northern Cheyennes, 1878-1879.
   (s) Campaign against the Ute Indians in Colorado and Utah,
September, 1879-November, 1880.
   (t) Campaign against the Apache Indians in Arizona, 1885-1886.
   (u) Campaign against the Sioux Indians in South Dakota, November,
1890 -January, 1891.
   (v) War With Germany-Austria, April 6, 1917-November 11, 1918.
   (w) Campaign against the Apache Indians in Arizona, 1895-1896.
   (x) World War II, December 7, 1941, to January 1, 1947.
   (y) Campaign against the North Koreans and Chinese Communists in
Korea, June 27, 1950, to January 31, 1955.
   (z) Campaign against the Viet Cong and North Vietnamese Communists
in South Vietnam, August 5, 1964, to May 8, 1975.
   The following are campaigns under subdivisions (o), (p), (q), and
(r) of Section 3 of Article XIII of the Constitution:
   (a) First Nicaraguan campaign.
   (b) Second Nicaraguan campaign.
   (c) Yangtze River campaign in China.
   (d) All other campaigns for service in which a medal has been
issued by the Congress of the United States.
205.1.  Section 205 of this code fulfills the intent of subdivisions
(o), (p), (q), and (r) of Section 3 of Article XIII of the
Constitution.  To further carry out the intent of subdivisions (o),
(p), (q), and (r) of Section 3 of Article XIII of the Constitution,
if the assessment ratio is increased from 25 percent to 100 percent
the amount of assessed value subject to the exemption shall be
increased from one thousand dollars ($1,000) to four thousand dollars
($4,000) in order to maintain the same proportionate value of the
exemption.  Whenever assessed value is used to determine eligibility
for such exemption based on the limitations on the value of property
owned, 25 percent of the assessed value shall be used when the
assessment ratio is increased to 100 percent to maintain the same
proportionate values of such property and such limitations.
205.5.  (a) Property that constitutes the principal place of
residence of a veteran, that is owned by the veteran, the veteran's
spouse, or the veteran and the veteran's spouse jointly, is exempted
from taxation on that part of the full value of the residence that
does not exceed one hundred thousand dollars ($100,000), as adjusted
for the relevant assessment year as provided in subdivision (h), if
the veteran is blind in both eyes, has lost the use of two or more
limbs, or if the veteran is totally disabled as a result of injury or
disease incurred in military service.  The one hundred thousand
dollar ($100,000) exemption shall be one hundred fifty thousand
dollars ($150,000), as adjusted for the relevant assessment year as
provided in subdivision (h), in the case of an eligible veteran whose
household income does not exceed the amount of forty thousand
dollars ($40,000), as adjusted for the relevant assessment year as
provided in subdivision (g).
   (b) (1) For purposes of this section, "veteran" means either of
the following:
   (A) A veteran as specified in subdivision (o) of Section 3 of
Article XIII of the California Constitution without regard to any
limitation contained therein on the value of property owned by the
veteran or the veteran's spouse.
   (B) Any person who would qualify as a veteran pursuant to
paragraph (1) except that he or she has, as a result of a
service-connected injury or disease, died while on active duty in
military service.  The United States Department of Veterans Affairs
shall determine whether an injury or disease is service connected.
   (2) For purposes of this section, property is deemed to be the
principal place of residence of a veteran, disabled as described in
subdivision (a), who is confined to a hospital or other care
facility, if that property would be that veteran's principal place of
residence were it not for his or her confinement to a hospital or
other care facility, provided that the residence is not rented or
leased to a third party.  A family member that resides at the
residence is not considered to be a third party.
   (c) (1) Property that is owned by, and that constitutes the
principal place of residence of, the unmarried surviving spouse of a
deceased veteran is exempt from taxation on that part of the full
value of the residence that does not exceed one hundred thousand
dollars ($100,000), as adjusted for the relevant assessment year as
provided in subdivision (h), in the case of a veteran who was blind
in both eyes, had lost the use of two or more limbs, or was totally
disabled provided that either of the following conditions is met:
   (A) The deceased veteran during his or her lifetime qualified in
all respects for the exemption or would have qualified for the
exemption under the laws effective on January 1, 1977, except that
the veteran died prior to January 1, 1977.
   (B) The veteran died from a disease that was service connected as
determined by the United States Department of Veterans Affairs.
   The one hundred thousand dollar ($100,000) exemption shall be one
hundred fifty thousand dollars ($150,000), as adjusted for the
relevant assessment year as provided in subdivision (h), in the case
of an eligible unmarried surviving spouse whose household income does
not exceed the amount of forty thousand dollars ($40,000), as
adjusted for the relevant assessment year as provided in subdivision
(g).
   (2) Commencing with the 1994-95 fiscal year, property that is
owned by, and that constitutes the principal place of residence of,
the unmarried surviving spouse of a veteran as described in paragraph
(2) of subdivision (b) is exempt from taxation on that part of the
full value of the residence that does not exceed one hundred thousand
dollars ($100,000), as adjusted for the relevant assessment year as
provided in subdivision (h).  The one hundred thousand dollar
($100,000) exemption shall be one hundred fifty thousand dollars
($150,000), as adjusted for the relevant assessment year as provided
in subdivision (h), in the case of an eligible unmarried surviving
spouse whose household income does not exceed the amount of forty
thousand dollars ($40,000), as adjusted for the relevant assessment
year as provided in subdivision (g).
   (d) As used in this section, "property that is owned by a veteran"
or "property that is owned by the veteran's unmarried surviving
spouse" includes all of the following:
   (1) Property owned by the veteran with the veteran's spouse as a
joint tenancy, tenancy in common, or as community property.
   (2) Property owned by the veteran or the veteran's spouse as
separate property.
   (3) Property owned with one or more other persons to the extent of
the interest owned by the veteran, the veteran's spouse, or both the
veteran and the veteran's spouse.
   (4) Property owned by the veteran's unmarried surviving spouse
with one or more other persons to the extent of the interest owned by
the veteran's unmarried surviving spouse.
   (5) So much of the property of a corporation as constitutes the
principal place of residence of a veteran or a veteran's unmarried
surviving spouse when the veteran, or the veteran's spouse, or the
veteran's unmarried surviving spouse is a shareholder of the
corporation and the rights of shareholding entitle one to the
possession of property, legal title to which is owned by the
corporation.  The exemption provided by this paragraph shall be shown
on the local roll and shall reduce the full value of the corporate
property.  Notwithstanding any provision of law or articles of
incorporation or bylaws of a corporation described in this paragraph,
any reduction of property taxes paid by the corporation shall
reflect an equal reduction in any charges by the corporation to the
person who, by reason of qualifying for the exemption, made possible
the reduction for the corporation.
   (e) For purposes of this section, being blind in both eyes means
having a visual acuity of 5/200 or less, or concentric contraction of
the visual field to 5 degrees or less; losing the use of a limb
means that the limb has been amputated or its use has been lost by
reason of ankylosis, progressive muscular dystrophies, or paralysis;
and being totally disabled means that the United States Department of
Veterans Affairs or the military service from which the veteran was
discharged has rated the disability at 100 percent or has rated the
disability compensation at 100 percent by reason of being unable to
secure or follow a substantially gainful occupation.
   (f) An exemption granted to a claimant in accordance with the
provisions of this section shall be in lieu of the veteran's
exemption provided by subdivisions (o), (p), (q), and (r) of Section
3 of Article XIII of the California Constitution and any other real
property tax exemption to which the claimant may be entitled.  No
other real property tax exemption may be granted to any other person
with respect to the same residence for which an exemption has been
granted under the provisions of this section; provided, that if two
or more veterans qualified pursuant to this section coown a property
in which they reside, each is entitled to the exemption to the extent
of his or her interest.
   (g) Commencing on January 1, 2002, and for each assessment year
thereafter, the household income limit shall be compounded annually
by an inflation factor that is the annual percentage change, measured
from February to February of the two previous assessment years,
rounded to the nearest one-thousandth of 1 percent, in the California
Consumer Price Index for all items, as determined by the California
Department of Industrial Relations.
   (h) Commencing on January 1,  2006, and for each assessment year
thereafter, the exemption amounts set forth in subdivisions (a) and
(c) shall be compounded annually by an inflation factor that is the
annual percentage change, measured from February to February of the
two previous assessment years, rounded to the nearest one-thousandth
of 1 percent, in the California Consumer Price Index for all items,
as determined by the California Department of Industrial Relations.
206.  The church exemption is as specified in subdivision (f) of
Section 3 and Section 5 of Article XIII of the Constitution.
206.1.  (a) Pursuant to the authority of subdivision (d) of Section
4 of Article XIII of the California Constitution, and in accordance
with subdivision (b) of this section, 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.
   (b) For purposes of the exemption established by subdivision (a),
all of the following shall apply:
   (1) "Real property" means land and improvements or a possessory
interest in land and improvements.
   (2) The real property is not required to be contiguous to the land
on which the church or other structure used for religious services
or as the place of worship or religious activity is located.
   (3) The real property is not at other times used for commercial
purposes.  For purposes of this paragraph, "commercial purposes" does
not include use of the property for the parking of vehicles or
bicycles, the revenue from which does not exceed the ordinary and
necessary costs of maintaining the real property.
   (4) The exemption shall apply to otherwise qualifying land and
improvements regardless of whether the land and improvements are
owned by the church, religious denomination, or sect using the land
and improvements for the parking of automobiles by persons described
in subdivision (a).  However, the exemption shall apply to land and
improvements that are not owned by the church, religious
denomination, or sect using the land and improvements for the parking
of automobiles by persons described in subdivision (a) only as long
as all of the following conditions are met:
   (A) The congregation of the church, religious denomination, or
sect is no greater than 500 members.
   (B) The church, religious denomination, or sect is engaged in a
lease of the land and improvements for the exclusive purpose of the
parking of automobiles by persons described in subdivision (a).
   (C) The church, religious denomination, or sect is responsible,
under the terms of its lease with the fee owner of the land and
improvements, for paying the property taxes levied on the land and
improvements.  For purposes of this subparagraph, paying property
taxes levied on land and improvements includes reimbursement paid to
the fee owner of the land and improvements for those taxes.
   (D) The real property is used exclusively for the parking of
automobiles by persons described in subdivision (a).
   (E) The fee owner of the real property and the county agree that
the fee owner shall pay the total amount of taxes that would be
levied on the real property for the current fiscal year and the first
two subsequent fiscal years in the absence of a grant of exemption
pursuant to this paragraph for the current fiscal year, if the real
property is used for any purpose other than that specified in
subparagraph (D) during either of those two subsequent fiscal years.
206.2.  Any reduction in property taxes on leased property used
exclusively for religious worship and granted the church exemption
shall inure to the benefit of the organization entitled to the
exemption.  If the lease or rental agreement does not specifically
provide that the church exemption is taken into account in fixing the
terms of the agreement, the tenant shall receive a reduction in
rental payments, or a refund of such payments, if paid, for each
month of occupancy, or portion thereof, during the fiscal year equal
to one-twelfth of the property taxes not paid during such fiscal year
by reason of the church exemption.
207.  Property used exclusively for religious purposes shall be
exempt from taxation.  Property owned and operated by a church and
used for religious worship, preschool purposes, nursery school
purposes, kindergarten purposes, school purposes of less than
collegiate grade, or for purposes of both schools of collegiate grade
and schools less than collegiate grade but excluding property used
solely for purposes of schools of collegiate grade, shall be deemed
to be used exclusively for religious purposes under this section.
   The exemption provided by this section is granted pursuant to the
authority in subdivision (b) of Section 4 of Article XIII of the
California Constitution, and shall be known as the "religious
exemption."
   This section shall be effective for the 1977-78 fiscal year and
fiscal years thereafter.
207.1.  Personal property leased to a church and used exclusively
for the purposes described in Section 207 shall be deemed to be used
exclusively for religious purposes under that section.
   The exemption provided by this section is granted pursuant to the
authority in Section 2 of Article XIII of the California
Constitution.
208.  The bonds exemption is as specified in subdivision (c) of
Section 3 of Article XIII of the Constitution.
209.  The exemption of certain vessels from taxation except for
state purposes is as specified in subdivision (l) of Section 3 of
Article XIII of the Constitution.
209.5.  All right, title or interest in or to any vessel of more
than 50 tons burden or 100 tons displacement, and the materials and
parts held by the builder of the vessel at the site of construction
for the specific purpose of incorporation therein, shall be exempt
from taxation except for state purposes, while the vessel is under
construction within this State.
211.  (a) The exemption of fruit- and nut-bearing trees until four
years after the season in which they were planted in orchard form and
grapevines until three years after the season in which they were
planted in vineyard form is as specified in subdivision (i) of
Section 3 of Article XIII of the Constitution.  For purposes of
exemption pursuant to this subdivision, any fruit- or nut-bearing
tree, or any grapevine, severely damaged during the exemption period
by the December 1990 freeze so as to require pruning to the trunk or
bud union to establish a new shoot as a replacement for the damaged
tree or grapevine, shall be considered a new planting in orchard or
vineyard form.  For purposes of exemption pursuant to this
subdivision, any fruit- or nut-bearing tree severely damaged during
the exemption period by the December 1998 freeze so as to require
pruning to the trunk or bud union to establish a new shoot as a
replacement for the damaged tree shall be considered a new planting
in orchard form.
   (b) The exemption of timber is as specified in subdivision (j) of
Section 3 of Article XIII of the Constitution and Section 436.
212.  (a) Notes, debentures, shares of capital stock, solvent
credits, bonds, deeds of trust, mortgages, and any interest in that
property are exempt from taxation.
   (b) Money kept on hand to be used in the ordinary and regular
course of a trade, profession, or business is exempt from taxation.
   (c) Intangible assets and rights are exempt from taxation and,
except as otherwise provided in the following sentence, the value of
intangible assets and rights shall not enhance or be reflected in the
value of taxable property. Taxable property may be assessed and
valued by assuming the presence of intangible assets or rights
necessary to put the taxable property to beneficial or productive
use.
213.  The exhibition exemption is as specified in this section.
   Personal property which comes within all the following
descriptions is exempt from taxation:
   (a) The property is brought into this State exclusively for
purposes of use or exhibition at any exposition, fair, carnival or
public exhibit of literary, scientific, educational, religious or
artistic works in this State and is used only for these purposes
while in this State.
   (b) It is intended to remove the property from the State following
its use or exhibition here.
   (c) The property is subject to taxation in some other State or a
foreign country while in this State and all taxes due in the other
State or country are paid when the exemption is claimed.
213.5.  In partial consideration of the public services provided to
property exempted from taxation by Section 214, the owner or person
in possession shall permit the free use of such property or portion
thereof as a polling place at any election conducted by the registrar
of voters if the registrar makes written request for the use of such
property at least 60 days before the date of the election.  The
registrar shall not be entitled to the use of any property used for
the practice of religion if the owner or possessor files with him at
least 45 days before the election an affidavit that (a)  the space
requested will be required for the ordinary and usual purposes of the
owner or possessor on the day of the election, setting forth what
such use will be, or (b) by reason of any contract, or condition, or
covenant in a deed, made or delivered before July 1, 1965, the use of
any portion of such property by the registrar of voters would breach
such contract, condition, or covenant.  The registrar shall not be
entitled to the use of other property if an affidavit under (b) is
filed with him.
   As used in this section, registrar of voters means county clerk in
counties having no registrar of voters.
   A county using this section shall insure itself, its employees,
the owner, and the person in possession of the property against any
liability for any injury connected with the use of the property as a
polling place.
   Use of property under this section shall be considered to be
exclusively for religious, hospital, or charitable purposes.
213.7.  (a) As used in Section 214, "property used exclusively for
religious, hospital, scientific or charitable purposes" shall include
the property of a volunteer fire department that is used exclusively
for volunteer fire department purposes, provided that the department
qualifies for exemption either under Section 23701d or 23701f of
this code or under Section 501(c)(3) or 501(c)(4) of the Internal
Revenue Code.  This section shall not be construed to enlarge the
"welfare exemption" to apply to organizations qualified under Section
501(c)(3) or 501(c)(4) of the Internal Revenue Code, but not
otherwise qualified for the "welfare exemption" under other
provisions of this code.
   (b) As used in this section, "volunteer fire department" means any
fund, foundation or corporation regularly organized for volunteer
fire department purposes, that qualified as an exempt organization on
or before January 1, 1969, either under Section 23701d or 23701f of
this code or under Section 501(c)(3) or 501(c)(4) of the Internal
Revenue Code, having official recognition and full or partial support
of the government of the county, city, or district in which the
volunteer fire department is located, and that has functions having
an exclusive connection with the prevention and extinguishing of
fires within the area of the county, city, or district extending
official recognition for the benefit of the public generally and to
lessen the burdens of the entity of government which would otherwise
be obligated to furnish such fire protection.
   (c) For purposes of subdivision (a), an organization shall not be
deemed to be qualified as an exempt organization unless the
organization files with the assessor a valid organizational clearance
certificate issued pursuant to Section 254.6.
214.  (a) Property used exclusively for religious, hospital,
scientific, or charitable purposes owned and operated by community
chests, funds, foundations, limited liability companies, or
corporations organized and operated for religious, hospital,
scientific, or charitable purposes is exempt from taxation, including
ad valorem taxes to pay the interest and redemption charges on any
indebtedness approved by the voters prior to July 1, 1978, or any
bonded indebtedness for the acquisition or improvement of real
property approved on or after July 1, 1978, by two-thirds of the
votes cast by the voters voting on the proposition, if:
   (1) The owner is not organized or operated for profit. However, in
the case of hospitals, the organization shall not be deemed to be
organized or operated for profit if, during the immediately preceding
fiscal year, operating revenues, exclusive of gifts, endowments and
grants-in-aid, did not exceed operating expenses by an amount
equivalent to 10 percent of those operating expenses. As used herein,
operating expenses include depreciation based on cost of replacement
and amortization of, and interest on, indebtedness.
   (2) No part of the net earnings of the owner inures to the benefit
of any private shareholder or individual.
   (3) The property is used for the actual operation of the exempt
activity, and does not exceed an amount of property reasonably
necessary to the accomplishment of the exempt purpose.
   (A) For the purposes of determining whether the property is used
for the actual operation of the exempt activity, consideration shall
not be given to use of the property for either or both of the
following described activities if that use is occasional:
   (i) The owner conducts fundraising activities on the property and
the proceeds derived from those activities are not unrelated business
taxable income, as defined in Section 512 of the Internal Revenue
Code, of the owner and are used to further the exempt activity of the
owner.
   (ii) The owner permits any other organization that meets all of
the requirements of this subdivision, other than ownership of the
property, to conduct fundraising activities on the property and the
proceeds derived from those activities are not unrelated business
taxable income, as defined in Section 512 of the Internal Revenue
Code, of the organization, are not subject to the tax on unrelated
business taxable income that is imposed by Section 511 of the
Internal Revenue Code, and are used to further the exempt activity of
the organization.
   (B) For purposes of subparagraph (A):
   (i) "Occasional use" means use of the property on an irregular or
intermittent basis by the qualifying owner or any other qualifying
organization described in clause (ii) of subparagraph (A) that is
incidental to the primary activities of the owner or the other
organization.
   (ii) "Fundraising activities" means both activities involving the
direct solicitation of money or other property and the anticipated
exchange of goods or services for money between the soliciting
organization and the organization or person solicited.
   (C) Subparagraph (A) shall have no application in determining
whether paragraph (3) has been satisfied unless the owner of the
property and any other organization using the property as provided in
subparagraph (A) have filed with the assessor a valid organizational
clearance certificate issued pursuant to Section 254.6.
   (D) For the purposes of determining whether the property is used
for the actual operation of the exempt activity, consideration shall
not be given to the use of the property for meetings conducted by any
other organization if the meetings are incidental to the other
organization's primary activities, are not fundraising meetings or
activities as defined in subparagraph (B), are held no more than once
per week, and the other organization and its use of the property
meet all other requirements of paragraphs (1) to (5), inclusive. The
owner of the other organization also shall file with the assessor a
valid organizational clearance certificate issued pursuant to Section
254.6.
   (E) Nothing in subparagraph (A), (B), (C), or (D) shall be
construed to either enlarge or restrict the exemption provided for in
subdivision (b) of Section 4 and Section 5 of Article XIII of the
California Constitution and this section.
   (4) The property is not used or operated by the owner or by any
other person so as to benefit any officer, trustee, director,
shareholder, member, employee, contributor, or bondholder of the
owner or operator, or any other person, through the distribution of
profits, payment of excessive charges or compensations, or the more
advantageous pursuit of their business or profession.
   (5) The property is not used by the owner or members thereof for
fraternal or lodge purposes, or for social club purposes except where
that use is clearly incidental to a primary religious, hospital,
scientific, or charitable purpose.
   (6) The property is irrevocably dedicated to religious,
charitable, scientific, or hospital purposes and upon the
liquidation, dissolution, or abandonment of the owner will not inure
to the benefit of any private person except a fund, foundation, or
corporation organized and operated for religious, hospital,
scientific, or charitable purposes.
   (7) The property, if used exclusively for scientific purposes, is
used by a foundation or institution that, in addition to complying
with the foregoing requirements for the exemption of charitable
organizations in general, has been chartered by the Congress of the
United States (except that this requirement shall not apply when the
scientific purposes are medical research), and whose objects are the
encouragement or conduct of scientific investigation, research, and
discovery for the benefit of the community at large.
   The exemption provided for herein shall be known as the "welfare
exemption." This exemption shall be in addition to any other
exemption now provided by law, and the existence of the exemption
provision in paragraph (2) of subdivision (a) of Section 202 shall
not preclude the exemption under this section for museum or library
property.  Except as provided in subdivision (e), this section shall
not be construed to enlarge the college exemption.
   (b) Property used exclusively for school purposes of less than
collegiate grade and owned and operated by religious, hospital, or
charitable funds, foundations, limited liability companies, or
corporations, which property and funds, foundations, limited
liability companies, or corporations meet all of the requirements of
subdivision (a), shall be deemed to be within the exemption provided
for in subdivision (b) of Section 4 and Section 5 of Article XIII of
the California Constitution and this section.
   (c) Property used exclusively for nursery school purposes and
owned and operated by religious, hospital, or charitable funds,
foundations, limited liability companies, or corporations, which
property and funds, foundations, limited liability companies, or
corporations meet all the requirements of subdivision (a), shall be
deemed to be within the exemption provided for in subdivision (b) of
Section 4 and Section 5 of Article XIII of the California
Constitution and this section.
   (d) Property used exclusively for a noncommercial educational FM
broadcast station or an educational television station, and owned and
operated by religious, hospital, scientific, or charitable funds,
foundations, limited liability companies, or corporations meeting all
of the requirements of subdivision (a), shall be deemed to be within
the exemption provided for in subdivision (b) of Section 4 and
Section 5 of Article XIII of the California Constitution and this
section.
   (e) Property used exclusively for religious, charitable,
scientific, or hospital purposes and owned and operated by religious,
hospital, scientific, or charitable funds, foundations, limited
liability companies, or corporations or educational institutions of
collegiate grade, as defined in Section 203, which property and
funds, foundations, limited liability companies, corporations, or
educational institutions meet all of the requirements of subdivision
(a), shall be deemed to be within the exemption provided for in
subdivision (b) of Section 4 and Section 5 of Article XIII of the
California Constitution and this section. As to educational
institutions of collegiate grade, as defined in Section 203, the
requirements of paragraph (6) of subdivision (a) shall be deemed to
be met if both of the following are met:
   (1) The property of the educational institution is irrevocably
dedicated in its articles of incorporation to charitable and
educational purposes, to religious and educational purposes, or to
educational purposes.
   (2) The articles of incorporation of the educational institution
provide for distribution of its property upon its liquidation,
dissolution, or abandonment to a fund, foundation, or corporation
organized and operated for religious, hospital, scientific,
charitable, or educational purposes meeting the requirements for
exemption provided by Section 203 or this section.
   (f) Property used exclusively for housing and related facilities
for elderly or handicapped families and financed by, including, but
not limited to, the federal government pursuant to Section 202 of
Public Law 86-372 (12 U.S.C. Sec.  1701q), as amended, Section 231 of
Public Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of Public Law
90-448 (12 U.S.C. Sec. 1715z), or Section 811 of Public Law 101-625
(42 U.S.C. Sec. 8013), and owned and operated by religious, hospital,
scientific, or charitable funds, foundations, or corporations
meeting all of the requirements of this section shall be deemed to be
within the exemption provided for in subdivision (b) of Section 4
and Section 5 of Article XIII of the California Constitution and this
section.
   The amendment of this paragraph made by Chapter 1102 of the
Statutes of 1984 does not constitute a change in, but is declaratory
of, existing law. However, no refund of property taxes shall be
required as a result of this amendment for any fiscal year prior to
the fiscal year in which the amendment takes effect.
   Property used exclusively for housing and related facilities for
elderly or handicapped families at which supplemental care or
services designed to meet the special needs of elderly or handicapped
residents are not provided, or that is not financed by the federal
government pursuant to Section 202 of Public Law 86-372 (12 U.S.C.
Sec. 1701q), as amended, Section 231 of Public Law 73-479 (12 U.S.C.
Sec. 1715v), Section 236 of Public Law 90-448 (12 U.S.C. Sec.
1715z), or Section 811 of Public Law 101-625 (42 U.S.C. Sec. 8013),
shall not be entitled to exemption pursuant to this subdivision
unless the property is used for housing and related facilities for
low- and moderate-income elderly or handicapped families. Property
that would otherwise be exempt pursuant to this subdivision, except
that it includes some housing and related facilities for other than
low- or moderate-income elderly or handicapped families, shall be
entitled to a partial exemption. The partial exemption shall be equal
to that percentage of the value of the property that is equal to the
percentage that the number of low- and moderate-income elderly and
handicapped families occupying the property represents of the total
number of families occupying the property.
   As used in this subdivision, "low and moderate income" has the
same meaning as the term "persons and families of low or moderate
income" as defined by Section 50093 of the Health and Safety Code.
   (g) (1) Property used exclusively for rental housing and related
facilities and owned and operated by religious, hospital, scientific,
or charitable funds, foundations, limited liability companies, or
corporations, including limited partnerships in which the managing
general partner or eligible limited liability company is an eligible
nonprofit corporation, meeting all of the requirements of this
section, or by veterans' organizations, as described in Section
215.1, meeting all the requirements of paragraphs (1) to (7),
inclusive, of subdivision (a), shall be deemed to be within the
exemption provided for in subdivision (b) of Section 4 and Section 5
of Article XIII of the California Constitution and this section and
shall be entitled to a partial exemption equal to that percentage of
the value of the property that the portion of the property serving
lower income households represents of the total property in any year
in which either of the following criteria applies:
   (A) The acquisition, rehabilitation, development, or operation of
the property, or any combination of these factors, is financed with
tax-exempt mortgage revenue bonds or general obligation bonds, or is
financed by local, state, or federal loans or grants and the rents of
the occupants who are lower income households do not exceed those
prescribed by deed restrictions or regulatory agreements pursuant to
the terms of the financing or financial assistance.
   (B) The owner of the property is eligible for and receives
low-income housing tax credits pursuant to Section 42 of the Internal
Revenue Code of 1986, as added by Public Law 99-514.
   (C) In the case of a claim, other than a claim with respect to
property owned by a limited partnership in which the managing general
partner is an eligible nonprofit corporation, that is filed for the
2000-01 fiscal year or any fiscal year thereafter, 90 percent or more
of the occupants of the property are lower income households whose
rent does not exceed the rent prescribed by Section 50053 of the
Health and Safety Code. The total exemption amount allowed under this
subdivision to a taxpayer, with respect to a single property or
multiple properties for any fiscal year on the sole basis of the
application of this subparagraph, may not exceed twenty thousand
dollars ($20,000) of tax.
   (2) In order to be eligible for the exemption provided by this
subdivision, the owner of the property shall do both of the
following:
   (A) (i) For any claim filed for the 2000-01 fiscal year or any
fiscal year thereafter, certify and ensure, subject to the limitation
in clause (ii), that there is an enforceable and verifiable
agreement with a public agency, a recorded deed restriction, or other
legal document that restricts the project's usage and that provides
that the units designated for use by lower income households are
continuously available to or occupied by lower income households at
rents that do not exceed those prescribed by Section 50053 of the
Health and Safety Code, or, to the extent that the terms of federal,
state, or local financing or financial assistance conflicts with
Section 50053, rents that do not exceed those prescribed by the terms
of the financing or financial assistance.
   (ii) In the case of a limited partnership in which the managing
general partner is an eligible nonprofit corporation, the restriction
and provision specified in clause (i) shall be contained in an
enforceable and verifiable agreement with a public agency, or in a
recorded deed restriction to which the limited partnership certifies.
   (B) Certify that the funds that would have been necessary to pay
property taxes are used to maintain the affordability of, or reduce
rents otherwise necessary for, the units occupied by lower income
households.
   (3) As used in this subdivision, "lower income households" has the
same meaning as the term "lower income households" as defined by
Section 50079.5 of the Health and Safety Code.
   (h) Property used exclusively for an emergency or temporary
shelter and related facilities for homeless persons and families and
owned and operated by religious, hospital, scientific, or charitable
funds, foundations, limited liability companies, or corporations
meeting all of the requirements of this section shall be deemed to be
within the exemption provided for in subdivision (b) of Section 4
and Section 5 of Article XIII of the California Constitution and this
section. Property that otherwise would be exempt pursuant to this
subdivision, except that it includes housing and related facilities
for other than an emergency or temporary shelter, shall be entitled
to a partial exemption.
   As used in this subdivision, "emergency or temporary shelter"
means a facility that would be eligible for funding pursuant to
Chapter 11 (commencing with Section 50800) of Part 2 of Division 31
of the Health and Safety Code.
   (i) Property used exclusively for housing and related facilities
for employees of religious, charitable, scientific, or hospital
organizations that meet all the requirements of subdivision (a) and
owned and operated by funds, foundations, limited liability
companies, or corporations that meet all the requirements of
subdivision (a) shall be deemed to be within the exemption provided
for in subdivision (b) of Section 4 and Section 5 of Article XIII of
the California Constitution and this section to the extent the
residential use of the property is institutionally necessary for the
operation of the organization.
   (j) For purposes of this section, charitable purposes include
educational purposes. For purposes of this subdivision, "educational
purposes" means those educational purposes and activities for the
benefit of the community as a whole or an unascertainable and
indefinite portion thereof, and do not include those educational
purposes and activities that are primarily for the benefit of an
organization's shareholders. Educational activities include the study
of relevant information, the dissemination of that information to
interested members of the general public, and the participation of
interested members of the general public.
   (k) In the case of property used exclusively for the exempt
purposes specified in this section, owned and operated by limited
liability companies that are organized and operated for those
purposes, the State Board of Equalization shall adopt regulations to
specify the ownership, organizational, and operational requirements
for those companies to qualify for the exemption provided by this
section.
   (l) The amendments made by Chapter 354 of the Statutes of 2004
shall apply with respect to lien dates occurring on and after January
1, 2005.
214.01.  (a) For the purpose of Section 214, property shall be
deemed irrevocably dedicated to religious, charitable, scientific, or
hospital purposes only if a statement of irrevocable dedication to
only these purposes is found in the articles of incorporation of the
corporation, or in the case of any other fund or foundation, limited
liability company, or corporation chartered by an act of Congress, in
the bylaws, articles of association, articles of organization,
constitution, or regulations thereof, as determined by the State
Board of Equalization.
   (b) If, when performing the duties specified by Section 254.6, the
board finds that an applicant for the welfare exemption is
ineligible for an organizational clearance certificate, because at
the time of the filing of the claim required by Section 254.6, the
applicant's articles of incorporation, or in the case of any
noncorporate fund or foundation, its bylaws, articles of association,
articles of organization, constitution or regulations, did not
comply with the provisions of this section, the board shall notify
the applicant in writing.  The applicant shall have until the next
succeeding lien date to amend its articles of incorporation, or in
the case of any noncorporate fund or foundation, its bylaws, articles
of association, articles of organization, constitution or
regulations, and to file a certified copy of these amendments that
conform to the provisions of this section with the board, and the
board shall make a finding that the applicant, if otherwise
qualified, is eligible for an organizational clearance certificate
and forward that finding to the assessor.
   (c) The amendments made by the act adding this subdivision shall
apply with respect to lien dates occurring on and after January 1,
2005.
214.02.  (a) Except as provided in subdivision (b) or (c), property
that is used exclusively for the preservation of native plants or
animals, biotic communities, geological or geographical formations of
scientific or educational interest, or open-space lands used solely
for recreation and for the enjoyment of scenic beauty, is open to the
general public subject to reasonable restrictions concerning the
needs of the land, and is owned and operated by a scientific or
charitable fund, foundation, limited liability company, or
corporation, the primary interest of which is to preserve those
natural areas, and that meets all the requirements of Section 214,
shall be deemed to be within the exemption provided for in
subdivision (b) of Sections 4 and 5 of Article XIII of the
Constitution of the State of California and Section 214.
   (b) The exemption provided by this section shall not apply to any
property of an organization that owns in the aggregate 30,000 acres
or more in one county that were exempt under this section prior to
March 1, 1983, or that are proposed to be exempt, unless the
nonprofit organization that holds the property is fully independent
of the owner of any taxable real property that is adjacent to the
property otherwise qualifying for tax exemption under this section.
For purposes of this section, the nonprofit organization that holds
the property shall be considered fully independent if the exempt
property is not used or operated by that organization or by any other
person so as to benefit any officer, trustee, director, shareholder,
member, employee, contributor or bondholder of the exempt
organization or operator, or the owner of any adjacent property, or
any other person, through the distribution of profits, payment of
excessive charges or compensations, or the more advantageous pursuit
of their business or profession.
   (c) The exemption provided by this section shall not apply to
property that is reserved for future development.
   (d) This section shall be operative from the lien date in 1983 to
and including the lien date in 2012, after which date this section
shall become inoperative, and as of January 1, 2013, this section is
repealed.
   (e) The amendments made by the act adding this subdivision shall
apply with respect to lien dates occurring on and after January 1,
2005.
214.05.  For purposes of Section 214:
   (a) If the property of an organization is granted an exemption
pursuant to Section 214, that property is deemed to be used
exclusively for the organization's  exempt purposes.  However, to the
extent that income derived from the organization's use of the
property is unrelated business taxable income, as defined in Section
512 of the Internal Revenue Code, and the regulations implementing
that section, and is subject to the tax on unrelated business taxable
income which is imposed by Section 511 of the Internal Revenue Code,
the property shall be exempt from taxation under Section 214 only to
the extent provided in subdivision (b) or (c).
   (b) (1) If the use of property which has qualified for the welfare
exemption under Section 214 involves activities of the organization,
some of which produce income that is exempt from income or franchise
taxation and some of which produce income that is taxable as
unrelated business taxable income, and those activities  are
attributable to a reasonably ascertainable portion of the entire
property,  that portion of the property shall be entitled only to a
partial exemption from property taxation equal to that proportion of
the total value of the portion of the property which the amount of
income of the organization that is exempt from income or franchise
taxation and that is attributable to that portion bears to the total
amount of income of the organization that is attributable to that
portion.  The remaining proportion of the total value of that portion
of the property shall be subject to taxation pursuant to this
division.
   (2) If the use of property which has qualified for the welfare
exemption under Section 214 involves activities of the organization,
some of which are exempt for property tax purposes and produce no
income and some of which produce income that is taxable as unrelated
business taxable income, or produce both income that is taxable as
unrelated business taxable income and income that is exempt from
income or franchise taxation and those activities are attributable to
a reasonably ascertainable portion of the entire property, that
portion of the property shall be entitled only to a partial exemption
equal to that proportion of the total value of the portion of the
property which the amount of time actually devoted to those exempt
nonincome-producing activities of the organization attributable to
that portion bears to the total amount of time actually devoted to
all of the activities of the organization attributable to that
portion.  The remaining proportion of the total value of that portion
of the property shall be subject to taxation pursuant to this
division.
   (3) If the activities described in paragraphs (1) and (2) cannot
be attributed to a reasonably ascertainable portion of the entire
property, the entire property shall be entitled only to a partial
exemption.  In the case of activities of the organization described
in paragraph (1), the partial exemption shall be equal to that
proportion of the value of the entire property which the amount of
income of the organization that is exempt from income or franchise
taxation and that is attributable to the entire property bears to the
total amount of income of the organization that is attributable to
the entire property.  In the case of activities of the organization
described in paragraph (2), the partial exemption shall be equal to
that proportion of the value of the entire property which the amount
of time actually devoted to exempt nonincome-producing activities of
the organization attributable to the entire property bears to the
total amount of time actually devoted to all of the activities of the
organization attributable to the entire property.  In either case,
the remaining proportion of the total value of the entire property
shall be subject to taxation pursuant to this division.
   (c) Notwithstanding subdivision (b), if more than 75 percent of
the income of an organization is attributable to property which has
qualified for the welfare exemption under Section 214, but is not
specifically related to the organization's use of particular
property, the property shall be entitled  only to a partial exemption
equal to that proportion of the total value of the property which
the amount of the income of the organization attributable to
activities in this state and exempt from income or franchise taxation
bears to the amount of total income of the organization that is
attributable to activities in this state.
   (d) Whenever property is claimed  exempt under Section 214 and
activities of the organization on the property produce unrelated
business taxable income, as defined in Section 512 of the Internal
Revenue Code, the organization, as a part of its claim for exemption,
shall file with the assessor each of the following:
   (1) The organization's information and tax returns filed with the
Internal Revenue Service for its immediately preceding fiscal year.
   (2) Information indicating the amount of time devoted to its
income-producing and its nonincome-producing activities and, where
applicable, a description of that portion of the property in which
those activities are conducted.
   (3) A statement listing the specific activities which produce the
unrelated business taxable income.
   (4) Whenever subdivision (c) is applicable, the amount of income
of the organization that is attributable to activities in this state
and is exempt from income or franchise taxation and the amount of
total income of the organization that is attributable to activities
in this state.
   (5) Any other information as prescribed by the board.
   (e) Nothing in this section shall be construed to enlarge the
welfare exemption provided in Section 214.
214.1.  As used in Section 214, "property used exclusively for
religious, hospital or charitable purposes" shall include facilities
in the course of construction on or after the first Monday of March,
1954, together with the land on which the facilities are located as
may be required for their convenient use and occupation, to be used
exclusively for religious, hospital or charitable purposes.
214.2.  (a) As used in Section 214.1, "facilities in the course of
construction" shall include the demolition or razing of a building
with the intent to replace it with facilities to be used exclusively
for religious, hospital, or charitable purposes.
   (b) As used in Section 214.1, "facilities in the course of
construction" shall include definite onsite physical activity
connected with construction or rehabilitation of a new or existing
building or improvement, that results in changes visible to any
person inspecting the site, where the building or improvement is to
be used exclusively for religious, hospital, or charitable purposes.
Activity as described in the preceding sentence having been
commenced and not yet finished, unless abandoned, shall establish
that a building or improvement is "under construction" for the
purposes of Section 5 of Article XIII of the California Constitution.
  Construction shall not be considered "abandoned" if delayed due to
reasonable causes and circumstances beyond the assessee's control,
that occur notwithstanding the exercise of ordinary care and the
absence of willful neglect.
214.3.  In the event that any property described in paragraph (6) of
subdivision (a) of Section 214 shall have been used solely for
charitable or hospital purposes for a minimum period of 30 years, the
"welfare exemption" granted by Section 214 shall extend to such
property irrespective of any reversionary provisions in the title of
the property respecting liquidation, dissolution or abandonment, if
the ownership, operation, use and dedication of the property are
otherwise within the purview of Section 214.
214.4.  For the purposes of Sections 207 and 214 a school of "less
than collegiate grade" is (a) any institution of learning attendance
at which exempts a student from attendance at a public full-time
elementary or secondary day school under Section 48222 of the
Education Code or (b) any institution of learning a majority of whose
students are persons that have been excused from attendance at a
full-time elementary or secondary day school under Section 48221 or
48226 of the Education Code.
214.5.  (a) Property used exclusively for school purposes of less
than collegiate grade, or exclusively for purposes of both schools of
and less than collegiate grade, and owned and operated by religious,
hospital or charitable funds, foundations or corporations, which
property and funds, foundations, limited liability companies, or
corporations meet all of the requirements of Section 214, shall be
deemed to be within the exemption provided for in subdivision (b) of
Section 4 and Section 5 of Article XIII of the Constitution of the
State of California and Section 214.  This section shall not be
construed to enlarge the college exemption.
   (b) The amendments made by the act adding this subdivision shall
apply with respect to lien dates occurring on and after January 1,
2005.
214.6.  (a) Property which is owned by an organization meeting the
requirements of subdivision (b) of Section 4 of Article XIII of the
California Constitution and complying with the requirements of
paragraphs (1) to (7), inclusive, of subdivision (a) of Section 214
and which is leased to an exempt governmental entity for the purpose
of conducting an activity which if conducted by the owner would
qualify the property for an exemption, or leased to a community
college, state college, or state university for educational purposes,
shall be deemed to be within the exemption provided for in
subdivision (b) of Section 4 of Article XIII of the California
Constitution if:
   (1) The total income received by the organization in the form of
rents, fees or charges from such lease does not exceed the ordinary
and usual expenses in maintaining and operating the leased property;
and
   (2) With respect to entities which are political subdivisions of
the state, the property is located within the boundaries of the
exempt governmental entity leasing the same.
   (b) To claim the exemption provided by this section for property
leased by a church to a school district, the church need only file a
lessor's exemption claim and affirm each of the following:
   (1) The total income received by the organization in the form of
rents, fees or charges from the lease does not exceed the ordinary
and usual expenses in maintaining and operating the leased property.
   (2) With respect to entities which are political subdivisions of
the state, the property is located within the boundaries of the
exempt governmental entity leasing the same.
214.7.  In the case of a hospital, neither the use of hospital
property nor the receipt of fees or other lawful compensation by a
licensed physician for the practice of his profession therein, shall
be grounds for denial of the exemption provided by Sections 214 and
254.5.  This section does not apply to such portions of a hospital as
may be leased or rented to a physician for his office for the
general practice of medicine.
214.8.  (a) Except as provided in Sections 213.7 and 231, and as
provided in subdivision (g) of Section 214 with respect to veterans'
organizations, the "welfare exemption" shall not be granted to any
organization unless it is qualified as an exempt organization under
either Section 23701d of this code or Section 501(c)(3) of the
Internal Revenue Code.  This section shall not be construed to
enlarge the "welfare exemption" to apply to organizations qualified
under Section 501(c)(3) of the Internal Revenue Code of 1954 but not
otherwise qualified for the "welfare exemption" under other
provisions of this code.
   The exemption for veterans' organizations shall not be granted to
any organization unless it is qualified as an exempt organization
under either Section 23701f or 23701w of this code or under Section
501(c)(4) or 501(c)(19) of the Internal Revenue Code.  This section
shall not be construed to enlarge the "veterans' organization
exemption" to apply to organizations qualified under Section 501(c)
(4) or 501(c)(19) of the Internal Revenue Code but not otherwise
qualified for the "veterans' organization exemption" under other
provisions of this code.
   (b) For purposes of subdivision (a), an organization shall not be
deemed to be qualified as an exempt organization unless the
organization files with the assessor a valid organizational clearance
certificate issued pursuant to Section 254.6.
   (c) (1) For purposes of subdivision (a), a limited liability
company wholly owned by one or more qualifying organizations that are
exempt under Section 23701d or under Section 501(c)(3) of the
Internal Revenue Code shall qualify as an exempt organization.
   (2) In the case of a limited liability company that does not have
a valid unrevoked letter from the Franchise Tax Board or the Internal
Revenue Service, the limited liability company may not be deemed to
be qualified as an exempt organization unless each member of the
limited liability company files with the board a copy of a valid,
unrevoked letter or ruling from either the Franchise Tax Board or the
Internal Revenue Service that states that the organization qualifies
as an exempt organization under the appropriate provisions of the
Revenue and Taxation Code or the Internal Revenue Code.
   (d) The amendments made by the act adding this subdivision shall
apply with respect to lien dates occurring on and after January 1,
2005.
214.9.  For the purposes of Section 214, a "hospital" includes an
outpatient clinic, whether or not patients are admitted for overnight
stay or longer, where the clinic furnishes or provides psychiatric
services for emotionally disturbed children, or where the clinic is a
nonprofit multispecialty clinic of the type described in subdivision
(l) of Section 1206 of the Health and Safety Code, so long as the
multispecialty clinic does not reduce the level of charitable or
subsidized activities it provides as a proportion of its total
activities.
   For purposes of this section, a "hospital" does not include those
portions of an outpatient clinic which may be leased or rented to a
physician for an office for the general practice of medicine.
214.10.  For purposes of Section 214, any nonprofit corporation
organized and operated for the advancement of education, improvement
of social conditions, and improvement of the job opportunities of
low-income, unemployed and underemployed citizens of the communities
in which they operate, and otherwise meeting all the requirements of
Section 214, shall not be disqualified from receiving the welfare
exemption solely because such organization receives all its funds
from governmental agencies.
214.11.  For purposes of Section 214, property owned and operated by
a nonprofit organization, otherwise qualifying for exemption under
Section 214, shall be deemed to be exclusively used for hospital
purposes so long as the property is exclusively used to meet the
needs of hospitals which qualify for exemption from property taxation
under Section 214 or any other law of the United States or this
state.  As used in this section, "needs of hospitals" includes any
use incidental to, and reasonably necessary for, the functioning of a
full hospital operation.
214.13.  Where property under development pursuant to the Community
Redevelopment Law (Pt. 1 (commencing with Sec. 33000), Div. 24,
H.&S.C.) is dedicated to religious, charitable, scientific, or
hospital purposes in the redevelopment plan and is required by the
plan to be conveyed to the state, a county, a city, or a nonprofit
entity entitled to a welfare exemption, that property shall be deemed
to be within the exemption provided for in Section 5 of Article XIII
of the Constitution of the State of California and this section, and
shall be exempt from property tax during construction, provided the
title to the property is to be conveyed to the state, a county, a
city, or nonprofit agency within three years of the completion of the
construction.  If that title is not passed to the state, a county, a
city, or nonprofit organization entitled to a welfare exemption
within three years of the completion of construction, the owner of
the property shall be liable for the taxes that would have been
imposed, plus a penalty of 25 percent of the amount due.
214.14.  (a) Property used exclusively for the charitable purposes
of museums and owned and operated by a religious, hospital,
scientific, or charitable fund, foundation, limited liability
company, or corporation which meets all the requirements of
subdivision (a) of Section 214 shall be deemed to be within the
exemption provided by Sections 4 and 5 of Article XIII of the
California Constitution and Section 214.
   (b) For purposes of this section:
   (1) Property used exclusively for the charitable purposes of
museums shall include property used for activities and facilities
related to the primary charitable purposes of museums and reasonably
necessary and incidental to those purposes.
   (2) Property used exclusively for the charitable purposes of
museums shall not be required to be indispensable to the primary
charitable purposes of museums.
   (3) Property used exclusively for the charitable purposes of
museums shall not include property used for activities and facilities
not related to the primary charitable purposes of museums and not
reasonably necessary or incidental to those purposes.
   (4) Property used exclusively for the charitable purposes of
museums shall include property owned by a nonprofit association or
organization performing auxiliary services to any city or county
museum in the state and used for the storage of items donated for an
annual rummage sale, the proceeds of which, after taking into account
the expenses of the nonprofit association or organization, are used
to provide support to those museums.  For purposes of this
subdivision, "storage of items donated for an annual rummage sale"
shall not be considered a "fundraising activity," as that term is
used in paragraph (3) of subdivision (a) of Section 214.
   (c) The amendments made by the act adding this subdivision shall
apply with respect to lien dates occurring on and after January 1,
2005.
214.15.  (a) Property is within the exemption provided by Sections 4
and 5 of Article XIII of the California Constitution if that
property is owned and operated by a nonprofit corporation, otherwise
qualifying for exemption under Section 214, that is organized and
operated for the specific and primary purpose of building and
rehabilitating single or multifamily residences for sale at cost to
low-income families, with financing in the form of a zero interest
rate loan and without regard to religion, race, national origin, or
the sex of the head of household.
   (b) (1) In the case of property not previously designated as open
space, the exemption specified by subdivision (a) may not be denied
to a property on the basis that the property does not currently
include a single or multifamily residence as described in that
subdivision, or a single or multifamily residence as so described
that is in the course of construction.
   (2) With regard to paragraph (1), the Legislature finds and
declares all of the following:
   (A) The exempt activities of a nonprofit corporation as described
in subdivision (a) qualitatively differ from the exempt activities of
other nonprofit entities that provide housing in that the exempt
purpose of a nonprofit corporation as described in subdivision (a) is
not to own and operate a housing project on an ongoing basis, but is
instead to make housing, and the land reasonably necessary for the
use of that housing, available for prompt sale to low-income
residents.
   (B) In light of this distinction, the holding of real property by
a nonprofit corporation as described in subdivision (a), for the
future construction on that property of a single or multifamily
residence as described in that same subdivision, is central to that
corporation's exempt purposes and activities.
   (C) In light of the factors set forth in subparagraphs (A) and
(B), the holding of real property by a nonprofit corporation
described in subdivision (a), for the future construction on that
property of a single or multifamily residence as described in that
same subdivision, constitutes the exclusive use of that property for
a charitable purpose within the meaning of subdivision (b) of Section
4 of Article XIII of the California Constitution.
215.  All personal property owned by a veteran organization which
has been chartered by the Congress of the United States, when the
same are used solely and exclusively for the purposes of such
organization, if not conducted for profit and no part of the net
earnings of which inures to the benefit of any private individual or
member thereof, shall be exempt from taxation.
215.1.  All buildings, and so much of the real property on which the
buildings are situated as may be required for the convenient use and
occupation of said buildings, used exclusively for charitable
purposes, owned by a veterans' organization which has been chartered
by the Congress of the United States, organized and operated for
charitable purposes, when the same are used solely and exclusively
for the purpose of such organization, if not conducted for profit and
no part of the net earnings of which inures to the benefit of any
private individual or member thereof, shall be exempt from taxation.
   The exemption provided for in this section shall apply to the
property of all organizations meeting the requirements of this
section and subdivision (b) of Section 4 of Article XIII of the
California Constitution and paragraphs (1) to (7), inclusive, of
subdivision (a) of Section 214.
   This exemption shall be known as the "veterans' organization
exemption."
215.2.  Property owned by an organization that satisfies the
requirements of Section 214, 215, or 215.1 and which is used
primarily for exempt purposes shall not be denied the welfare or
veterans organization exemption because such property is also used
for conducting bingo games pursuant to Section 326.5 of the Penal
Code, provided that the proceeds from such games are used exclusively
for the charitable purposes of such organization.
215.5.  All personal property owned or leased by a nonprofit
corporation, which does not accept advertising for a consideration
and is engaged exclusively in the production of programs for
educational television, and all personal property owned or leased by
a nonprofit educational organization, which is engaged exclusively in
the production of programs as a noncommercial educational FM or AM
broadcast station, shall be exempt from taxation, if such personal
property is used solely and exclusively for the purposes of such
organization or corporation and no part of the corporation's or
organization's net earnings inure to the benefit of any private
shareholder or individual.
216.  The stock in trade up to one thousand five hundred dollars
($1,500) of a vending stand operated by a blind person licensed by
the Bureau of Vocational Rehabilitation pursuant to federal or state
law is exempt from taxation.
217.  (a) Except as provided in subdivision (d), the following
articles of personal property that have been made available for
display in a publicly owned art gallery or museum, or a museum that
is regularly open to the public and that is operated by a nonprofit
organization that qualifies for exemption pursuant to Section 23701d,
shall be exempt from taxation:
   (1) Original paintings in oil, mineral, water, vitreous enamel, or
other colors, pastels, original mosaics, original drawings and
sketches in pen, ink, pencil, or watercolors, or works of the free
fine arts in any other media including applied paper and other
materials, manufactured or otherwise, that are used on collages,
artists' proof etchings unbound, and engravings and woodcuts unbound,
lithographs, or prints made by other hand transfer processes
unbound, or original sculptures or statuary. As used in this
subdivision:
   (A) "Sculpture" and "statuary" shall include professional
productions of sculptors only whether in round or in relief, in
bronze, marble, stone, terra cotta, ivory, wood, metal, or other
materials, or whether cut, carved, or otherwise wrought by hand from
the solid block or mass of marble, stone, alabaster, or from metal,
or other materials, or cast in bronze or other metal or substance, or
from wax or plaster, or constructed from any material or made in any
form as the professional productions of sculptors, only.
   (B) "Original" when used to modify the words "sculptures" and
"statuary" shall include the original work or model and the first 10
castings, replicas, or reproductions made from the sculptor's
original work or model, with or without a change in scale, regardless
of whether or not the sculptor is alive at the time the castings,
replicas, or reproductions are completed.
   (C) "Painting," "mosaic," "drawing," "work of the free fine arts,"
"sketch," "sculpture," and "statuary" shall not include any articles
of utility, articles designed for industrial use, or any articles
that are made wholly or in part by stenciling or any other mechanical
process.
   (D) "Etchings," "engravings," "woodcuts," "lithographs," or
"prints made by other hand transfer processes," shall include only
works that are printed by hand from plates, stones or blocks etched,
drawn, or engraved with handtools and do not include works that are
printed from plates, stones or blocks etched, drawn, or engraved by
photochemical or other mechanical processes.
   (2) Original works of the free fine arts, that are not described
in paragraph (1), are subject to regulations, as the board may
prescribe, to prove that the article represents some school, kind, or
medium of the free fine arts. As used in this paragraph, "original
works of the free fine arts" shall not include any article of utility
or any article designed for industrial use.
   (b) When making a claim for an exemption pursuant to this section,
a person claiming the exemption shall provide all information
required and answer all questions in an affidavit, under penalty of
perjury. The assessor may require other proof of the facts stated
before allowing the exemption. The affidavit shall be accompanied by
a certificate of the director or other officer of the art gallery or
museum in which the property for which an exemption is claimed under
this section was made available for display that the property was
available for public display in the art gallery or museum for the
period specified in subdivision (e).
   (c) Sections 255 and 260 shall be applicable to the exemption
provided by this section.
   (d) The exemption provided by subdivision (a) shall not apply to
any work of art loaned by any person who holds works of art primarily
for purposes of sale.
   (e) The exemption provided by this section shall not apply unless
the property was made available for public display in the art gallery
or museum for a period of 90 days during the 12-month period
immediately preceding the lien date for the year for which the
exemption is claimed.
   If the property was first made available for public display less
than 90 days prior to the lien date, the exemption may be granted if
the person claiming the exemption certifies in writing that the
property will be made available for public display for at least 90
days during the 12-month period commencing with the first day the
property was made available for public display.
   (f) For purposes of this section, "regularly open to the public"
means that the gallery or museum was open to the public not less than
20 hours per week for not less than 35 weeks of the 12-month period
immediately preceding the lien date for the year for which the
exemption is claimed.
   If the gallery or museum has been open for less than 35 weeks
during the 12-month period immediately preceding the lien date or for
less than 20 hours per week during that period, the exemption may be
granted if the director or other officer of the gallery or museum
certifies in writing that the gallery or museum will be open for not
less than 20 hours per week for not less than 35 weeks during the
12-month period beginning with the day the gallery or museum was
first opened.
   (g) If a person certifies in writing that the property will be
made available and the gallery or museum open for the periods
specified in subdivisions (e) and (f), and the property is not so
made available or the gallery or museum is not so opened, the
exemption shall be canceled, and an escape assessment may be made as
provided in Section 531.1.
217.1.  (a) Except as provided in subdivision (d), the following
articles of personal property that are made available for display in
a publicly owned aerospace museum, or an aerospace museum that is
regularly open to the public and that is operated by a nonprofit
organization that qualifies for exemption pursuant to Section 23701d,
shall be exempt from taxation:
   (1) Aircraft that have been restored or maintained, whether
currently certified or not for flight purposes.
   (2) Aircraft donated in perpetuity to the aerospace museum.
   (b) When making a claim for an exemption pursuant to this section,
a person claiming the exemption shall give all information required
and answer all questions in an affidavit, and shall subscribe and
swear to the affidavit, under penalty of perjury.  The assessor may
require other proof of the facts stated before allowing the
exemption.  The affidavit shall be accompanied by a certificate of
the director or other officer of the aerospace museum in which the
property for which an exemption is claimed under this section was
made available for display that the property was available for public
display in the aerospace museum for the period specified in
subdivision (e).
   (c) For the 1984-85 assessment year and each assessment year
thereafter, the provisions of Sections 255 and 260 shall be
applicable to the exemption provided by this section.
   (d) The exemption provided by subdivision (a) shall not apply to
any aircraft loaned by any person who holds aircraft primarily for
purposes of sale.
   (e) The exemption provided by this section shall not apply unless
the property was made available for public display in the aerospace
museum for a period of 90 days during the 12-month period immediately
preceding the lien date for the year for which the exemption is
claimed.
   If the property was first made available for public display less
than 90 days prior to the lien date, the exemption may be granted if
the person claiming the exemption certifies in writing that the
property will be made available for public display for at least 90
days during the 12-month period commencing with the first day the
property was made available for public display.
   (f) For purposes of this section, "regularly open to the public"
means that the aerospace museum was open to the public not less than
20 hours per week for not less than 35 weeks of the 12-month period
immediately preceding the lien date for the year for which the
exemption is claimed.
   If the aerospace museum has been open for less than 35 weeks
during the 12-month period immediately preceding the lien date or for
less than 20 hours per week during that period, the exemption may be
granted if the director or other officer of the aerospace museum
certifies in writing that the aerospace museum will be open for not
less than 20 hours per week for not less than 35 weeks during the
12-month period beginning with the date the aerospace museum was
first opened.
   (g) If a person certifies in writing that the property will be
made available and the aerospace museum open for the periods
specified in subdivisions (e) and (f), and the property is not so
made available or the aerospace museum is not so opened, the
exemption shall be canceled, and an escape assessment may be made as
provided in Section 531.1.
   (h) The exemption provided by this section shall be applicable for
the 1979-80 fiscal year and each fiscal year thereafter.
218.  (a) The homeowners' property tax exemption is in the amount of
the assessed value of the dwelling specified in this section, as
authorized by subdivision (k) of Section 3 of Article XIII of the
Constitution. That exemption shall be in the amount of seven thousand
dollars ($7,000) of the full value of the dwelling.
   (b) The exemption does not extend to property that is rented,
vacant, under construction on the lien date, or that is a vacation or
secondary home of the owner or owners, nor does it apply to property
on which an owner receives the veteran's exemption.
   (c) For purposes of this section, all of the following apply:
   (1) "Owner" includes a person purchasing the dwelling under a
contract of sale or who holds shares or membership in a cooperative
housing corporation, which holding is a requisite to the exclusive
right of occupancy of a dwelling.
   (2) (A) "Dwelling" means a building, structure, or other shelter
constituting a place of abode, whether real property or personal
property, and any land on which it may be situated. A two-dwelling
unit shall be considered as two separate single-family dwellings.
   (B) "Dwelling" includes the following:
   (i) A single-family dwelling occupied by an owner thereof as his
or her principal place of residence on the lien date.
   (ii) A multiple-dwelling unit occupied by an owner thereof on the
lien date as his or her principal place of residence.
   (iii) A condominium occupied by an owner thereof as his or her
principal place of residence on the lien date.
   (iv) Premises occupied by the owner of shares or a membership
interest in a cooperative housing corporation, as defined in
subdivision (i) of Section 61, as his or her principal place of
residence on the lien date. Each exemption allowed pursuant to this
subdivision shall be deducted from the total assessed valuation of
the cooperative housing corporation. The exemption shall be taken
into account in apportioning property taxes among owners of share or
membership interests in the cooperative housing corporations so as to
benefit those owners who qualify for the exemption.
   (d) Any dwelling that qualified for an exemption under this
section prior to October 20, 1991, that was damaged or destroyed by
fire in a disaster, as declared by the Governor, occurring on or
after October 20, 1991, and before November 1, 1991, and that has not
changed ownership since October 20, 1991, shall not be disqualified
as a "dwelling" or be denied an exemption under this section solely
on the basis that the dwelling was temporarily damaged or destroyed
or was being reconstructed by the owner.
   (e) Any dwelling that qualified for an exemption under this
section prior to October 15, 2003, that was damaged or destroyed by
fire or earthquake in a disaster, as declared by the Governor, during
October, November, or December 2003, and that has not changed
ownership since October 15, 2003, shall not be disqualified as a
"dwelling" or be denied an exemption under this section solely on the
basis that the dwelling was temporarily damaged or destroyed or was
being reconstructed by the owner.
   (f) Any dwelling that qualified for an exemption under this
section prior to June 3, 2004, that was damaged or destroyed by flood
in a disaster, as declared by the Governor, during June 2004, and
that has not changed ownership since June 3, 2004, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner.
   (g) Any dwelling that qualified for an exemption under this
section prior to August 11, 2004, that was damaged or destroyed by
the wildfires and any other related casualty that occurred in Shasta
County in a disaster, as declared by the Governor, during August
2004, and that has not changed ownership since August 11, 2004, shall
not be disqualified as a "dwelling" or be denied an exemption under
this section solely on the basis that the dwelling was temporarily
damaged or destroyed or was being reconstructed by the owner.
   (h) Any dwelling that qualified for an exemption under this
section prior to December 28, 2004, that was damaged or destroyed by
severe rainstorms, floods, mudslides, or the accumulation of debris
in a disaster, as declared by the Governor, during December 2004,
January 2005, February 2005, March 2005, or June 2005, and that has
not changed ownership since December 28, 2004, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to floods, mudslides, the accumulation of debris, or
washed out or damaged roads.
   (i) The exemption provided for in subdivision (k) of Section 3 of
Article XIII of the Constitution shall first be applied to the
building, structure, or other shelter and the excess, if any, shall
be applied to any land on which it may be located.
218.5.  In order to assure the accuracy of the state's
reimbursements for the homeowners' property tax exemption and to
prevent duplications of the exemptions within the state and improper
overlapping with other benefits provided by law, county assessors
shall supply information from homeowners' property tax exemption
claims and county records as is specified by written request of the
board, and with the concurrence of the Controller, necessary to fully
identify all homeowners' property tax exemption claims allowed by
the assessors.  The board may specify that the information include
all or a part of the names and social security numbers of claimants
and spouses and the identity and location of the dwelling to which
the exemption applies.  The information may be required in the form
of data processing media or other media and in such format as is
compatible with the recordkeeping processes of the counties and the
auditing procedures of the state.
219.  For the 1980-81 fiscal year and fiscal years thereafter,
business inventories are exempt from taxation and the assessor shall
not assess business inventories.
220.  Any aircraft which is in California on the lien date solely
for the purpose of being repaired, overhauled, modified, or serviced
is exempt from personal property taxation.  This exemption does not
apply to aircraft normally based in California, or operated
intrastate or interstate in and into California.
220.5.  (a) Aircraft of historical significance shall be exempt from
taxation.
   (b) The exemption provided in subdivision (a) applies only if all
of the following conditions are satisfied:
   (1) The assessee is an individual owner who does not hold the
aircraft primarily for purposes of sale.
   (2) The assessee does not use the aircraft for commercial purposes
or general transportation.
   (3) The aircraft is available for display to the public at least
12 days during the 12-month period immediately preceding the lien
date for the year for which the exemption is claimed.  If the
aircraft was first made available for public display less than 12
days prior to the lien date, the exemption may be granted if the
claimant certifies in writing that the aircraft will be made
available for public display at least 12 days during the 12-month
period commencing with the first day the property was made available
for public display.  When applying for an exemption pursuant to this
section, the claimant shall attach to that application a certificate
of attendance from the event coordinator of the event at which the
aircraft was displayed as required by this paragraph.
   (c) When claiming an exemption pursuant to this section, the
claimant shall provide all information required and answer all
questions contained in an affidavit furnished by the assessor.  The
claimant shall sign the affidavit, under penalty of perjury.  The
assessor may require additional proof of the information or answers
provided in the affidavit before allowing the exemption.
   (d) For purposes of this section, "aircraft of historical
significance" means any aircraft that is an original, restored, or
replica of a heavier than air powered aircraft that is 35 years or
older or any aircraft of a type or model of which there are fewer
than five in number known to exist worldwide.
   (e) A fee of thirty-five dollars ($35) shall be charged and
collected by the assessor upon the initial application for an
exemption pursuant to this section.
221.  For the purposes of Section 214 a nursery school is any group
facility for minors which has obtained a written license or permit to
operate as such from the State Department of Social Services or from
an inspection service approved or accredited by the State Department
of Social Services, and which is owned and operated for one or more
of the following purposes:
   (a) The facility is owned and operated to provide day care for
minors whose parent or parents are unable to supervise such minors
due to the hours of employment of the parent or parents.
   (b) The facility is owned and operated to provide training and
education for minors of preschool age.
   (c) The facility is owned and operated to provide instruction to
parents on the subject of raising minors and to provide training and
education for minors.
222.  Personal property used exclusively in the operation of a zoo
or for purposes of horticultural display on publicly owned land which
is owned by a nonprofit zoological society meeting all the
requirements of Section 214 shall be exempt from taxation.
222.5.  As used in Section 214, "property used exclusively for
religious, hospital, scientific or charitable purposes" shall include
possessory interests in publicly owned land, used exclusively for
the operation of a zoo or for purposes of horticultural display by a
zoological society meeting all the requirements of Section 214.
223.  Fruit trees, nut trees, and grapevines of a grower, which are
personal property, held on the lien date for subsequent planting in
orchard or vineyard form and are planted during the assessment year
by the grower shall be exempt from taxation.  This section does not
apply to plant nurseries.
224.  The personal effects, household furnishings, and pets of any
person shall be exempt from taxation.
   The phrase "personal effects, household furnishings, and pets"
does not include boats, aircraft, vehicles, or personalty held or
used in connection with a trade, profession or business or pets so
held or used.
   For purposes of this section, "pets" mean and include any animals
held for noncommercial purposes and not as an investment.
225.  (a) A trailer, semitrailer, logging dolly, pole or pipe dolly,
or trailer bus, that has a valid identification plate issued to it
pursuant to Section 5014.1 of the Vehicle Code, or any auxiliary
dolly or tow dolly is exempt from personal property taxation.
   (b) The exemption provided for in subdivision (a) does not apply
to a logging dolly that is used exclusively off-highway.
225.5.  (a) For purposes of Section 214 an educational television
station is any facility, which does not accept advertising for a
consideration and which transmits television programs by wires,
lines, radio waves, waveguides, coaxial cable, microwave transmitters
or other electronic or mechanical means or any combination thereof,
if the corporation, fund or foundation owning such station receives
at least twenty-five (25) percent of its operating expenses by means
of contributions from the general public or dues from members.
   (b) For purposes of Section 214 a noncommercial educational FM
broadcast station is any facility licensed and operating pursuant to
subpart (C) (commencing with Section 73.501) of Part 73 of Title 47
of the Code of Federal Regulations.
226.  (a) Personal property consisting of qualified computer
equipment shall be exempt from taxation.
   (b) For purposes of this section:
   (1) "Qualified computer equipment" means all computer equipment of
the San Diego Supercomputer Center located on the campus of the
University of California, San Diego.
   (2) "Computer equipment" includes, but is not limited to, any
supercomputer and all peripheral computer and other equipment related
to the system of which the supercomputer is the principal component
and all other equipment that becomes a part of that supercomputer
system.
227.  A documented vessel, as defined in Section 130, shall be
assessed at 4 percent of its full cash value only if the vessel is
engaged or employed exclusively in any of the following:
   (a) In the taking and possession of fish or other living resource
of the sea for commercial purposes.
   (b) In instruction or research studies as an oceanographic
research vessel.
   (c) In carrying or transporting seven or more people for hire for
commercial passenger fishing purposes and holds a current certificate
of inspection issued by the United States Coast Guard.  A vessel
shall not be deemed to be engaged or employed in activities other
than the carrying or transporting of seven or more persons for hire
for commercial passenger fishing purposes by reason of that vessel
being used occasionally for dive, tour, or whale watching purposes.
For purposes of this subdivision, "occasionally" means 15 percent or
less of the total operating time logged for the immediately preceding
assessment year.
228.  (a) A vessel with a market value of four hundred dollars
($400) or less shall be free from taxation.  This section shall only
apply to vessels used or held for noncommercial purposes and shall
not apply to lifeboats or other vessels used in conjunction with
operations of vessels with a market value of more than four hundred
dollars ($400).  This section shall not apply to more than one vessel
owned, claimed, possessed, or controlled by an assessee on the lien
date.
   (b) For purposes of this section, "vessel" includes every
description of watercraft used or capable of being used as a means of
transportation on water, except vessels described in paragraphs (1)
and (2) of subdivision (c) of Section 651 of the Harbors and
Navigation Code.
   (c) For purposes of this section, "vessel" includes all equipment,
including mode of power, and furnishings that are normally required
aboard the vessel during the accomplishment of the functions for
which the vessel is being utilized.
229.  (a) A floating home shall be assessed in the same manner as
real property.
   (b) For purposes of determining the valuation of floating homes
pursuant to this section, the procedures set forth in Section 110.1
shall apply, except that:
   (1) The 1979 lien date shall be substituted for the 1975 lien
date.
   (2) The 1979-80 assessment roll shall be substituted for the 1975
-76 assessment roll.
   (3) The date January 1, 1983, shall be substituted for the dates
June 30, 1980, and June 30, 1981.
   (c) "Floating home" means a floating structure which is all of the
following:
   (1) It is designed and built to be used, or is modified to be
used, as a stationary waterborne residential dwelling.
   (2) It has no mode of power of its own.
   (3) It is dependent for utilities upon a continuous utility
linkage to a source originating on shore.
   (4) It has a permanent continuous hookup to a shoreside sewage
system.
   "Floating home" does not include a vessel.  This section does not
affect existing law regarding residential use of tide and submerged
lands.
230.  (a) With regard to taxes that attach as a lien on or after
January 1, 2001, wooden vessels of historical significance, and all
personal property thereon used in their operation, are exempt from
taxation.  This exemption applies if all of the following conditions
are satisfied:
   (1) The owner and operator is a nonprofit organization that has
qualified for exemption under either Section 23701d of this code or
under Section 501(c)(3) of the Internal Revenue Code.
   (2) No part of the net earnings of the owner inures to the benefit
of any private shareholder or individual.
   (3) The vessel is used primarily as, or as a part of, a maritime
museum that is regularly open to the public.
   (4) Income from fundraising use and use for charter activities
does not exceed 40 percent of operating revenues of the vessel, and
all net earnings are used to further the exempt activity of the
museum.
   (b) When claiming an exemption pursuant to this section, a
claiming organization shall give all information required and answer
all questions in an affidavit, to be furnished by the assessor, that
is signed by the claimant under penalty of perjury.  The assessor may
require other proof of the facts stated in the affidavit before
allowing the exemption.  A claimant for an exemption pursuant to this
section is subject to Sections 255 and 260.
   (c) For purposes of this section, the following definitions apply:
   (1) "Wooden vessel of historical significance" means any wooden
vessel that is a refurbished original, wooden inland waters vessel of
47 feet or larger, built in California during or prior to 1910, that
continuously thereafter has remained in California waters, and that
has been designated a California State Historical Landmark.
   (2) "Regularly open to the public" means that the museum was open
to the public not less than 20 hours per week for not less than 35
weeks of the 12-month period immediately preceding the lien date for
the year for which the exemption is claimed.
231.  (a) Property that is owned by a nonprofit corporation and
leased to, and used exclusively by, government for its interest and
benefit shall be exempt from taxation within the meaning of
"charitable purposes" in subdivision (b) of Section 4 and Section 5
of Article XIII of the California Constitution if:
   (1) All of the provisions of Section 214 are complied with, except
paragraph (6) of subdivision (a).  For purposes of paragraph (6) of
subdivision (a) of Section 214, irrevocable dedication to charitable
purpose shall be deemed to exist if the lease provides that the
property shall be transferred in fee to the entity of government
leasing the same upon the sooner of either the liquidation,
dissolution, or abandonment of the owner or at the time the last
rental payment is made under the provisions of the lease.
   (2) All of the provisions of Section 254.5 relating to owners are
complied with, commencing during calendar year 1969.
   (3) All of the provisions of Section 214.01 are complied with by
March 15, 1970.
   (b) As used in this section "property" means:
   (1) Any building or structure of a kind or nature which is
uniquely of a governmental character and includes, but is not limited
to, the following:
   (A) City halls.
   (B) Courthouses.
   (C) Administration buildings.
   (D) Police stations, jails, or detention facilities.
   (E) Fire stations.
   (F) Parks, playgrounds, or golf courses.
   (G) Hospitals.
   (H) Water systems and waste water facilities.
   (I) Toll bridges.
   (2) Any other property required for the use and occupation of the
buildings and leased to government.
   (3) Any possessory interest of the nonprofit corporation in
property and in the land upon which the property was constructed and
so much of the surrounding land that is required for the use and
occupation of the property.
   (4) Any building and its equipment in the course of construction
on or after the first Monday of March, 1954, together with the land
on which it is located as may be required for the use and occupation
of the building when the building and equipment is being constructed
for the sole purpose of being leased to government to lessen its
burden.
   "Uniquely of a governmental character" means the property, except
hospitals, water systems, waste water facilities, golf courses, and
toll bridges, is not intended to produce income or revenue in the
form of rents or admission, user or service fees, or charges.
   (c) As used in this section "property" does not include any
possessory interest of any person or organization not exempt from
taxation.
   (d) As used in this section "nonprofit corporation" means a
community chest, fund, foundation or corporation, not conducted for
profit, and no part of the net earnings of which inures to the
benefit of any private shareholder or individual and that nonprofit
corporation is organized and operated for the sole purpose of leasing
property to government and to lessen the burden of government and,
in fact, only leases property to government.  That nonprofit
corporation shall qualify as an exempt organization either under
Section 23701f or 23701u of this code or Section 501(c)(4) of the
Internal Revenue Code of 1986.  This subdivision is not intended to
enlarge the "welfare exemption" to apply to organizations qualified
under Section 501(c)(4) of the Internal Revenue Code of 1986 but not
otherwise qualified for the "welfare exemption" under this section.
Nonprofit corporations that meet the tests of this subdivision are
deemed to be organized and operated for charitable purposes.
   (e) As used in this section "government" means the State of
California, a city, city and county, county, public corporation, and
a hospital district.
   (f) The exemption provided for in this section shall be deemed to
be within the "welfare exemption" for purposes of Section 251.
   (g) For leases first entered into by and between government and a
nonprofit corporation on or after January 1, 1969, all requirements
of this section shall be met for the property and the nonprofit
corporation to qualify for the exemption provided by this section.
   (h) For leases first entered into by and between government and a
nonprofit corporation on or before December 31, 1968, all
requirements of this section shall be met except that the last
unnumbered paragraph of subdivision (b) shall not apply and for the
purposes of subdivision (b)(1) the list of real property qualifying
for this exemption includes community recreation buildings or
facilities, golf courses, airports, water, sewer and drainage
facilities, music centers and their related facilities, and public
parking incidental to and in connection with one of the buildings or
structures set forth in this section.
   (i) Property exempt under this section shall be located within the
boundaries of the entity of government leasing the same.
   (j) Where the construction has commenced on or after January 1,
1969, improvements shall be advertised and put to competitive bid to
qualify for the exemption provided by this section.
   (k) For purposes of subdivision (d), a nonprofit corporation shall
not be deemed to be qualified as an exempt organization unless the
organization files with the assessor a valid organizational clearance
certificate issued pursuant to Section 254.6.
232.  All cargo containers principally used for the transportation
of cargo by vessels in ocean commerce shall be exempt from property
taxation.
   Any tax exemption created by this section shall not apply to a
cargo-carrying vehicle subject to the registration provisions of
Section 4000 of the Vehicle Code.
   The term "container" means a receptacle:
   (a) Of a permanent character and accordingly strong enough to be
suitable for repeated use;
   (b) Specially designed to facilitate the carriage of goods, by one
or more modes of transport, one of which shall be by vessels,
without intermediate reloading;
   (c) Fitted with devices permitting its ready handling,
particularly its transfer from one mode of transport to another;
   (d) So designed to be easy to fill and empty; and
   (e) Having a cubic displacement of 1,000 cubic feet or more.
234.  Seed potatoes of a grower, which are personal property, held
on the lien date for subsequent planting in field form and planted
during the assessment year by the grower shall be exempt from
taxation.  This section does not apply to plant nurseries.
235.  For the purposes of this division, the lessee of tangible
personal property owned by a bank or financial corporation shall be
conclusively presumed the owner of that property.
236.  Property leased for a term of 35 years or more or any transfer
of property leased with a remaining term of 35 years or more where
the lessor is not otherwise qualified for a tax exemption pursuant to
Section 214, which is used exclusively and solely for rental housing
and related facilities for tenants who are persons of low income (as
defined in Section 50093 of the Health and Safety Code), and is
leased and operated by religious, hospital, scientific, or charitable
funds, foundations or corporations, public housing authorities,
public agencies, or limited partnerships in which the managing
general partner  has received a determination that it is a charitable
organization under Section 501(c)(3) of the Internal Revenue Code
and is operating the property in accordance with its exempt purpose
is exempt from taxation on the possessory interest and the fee
interest in the property throughout the term of the lease.
   Low- and moderate-income has the same meaning as the term "persons
and families of low- and moderate-income" as defined by Section
50093 of the Health and Safety Code.
236.5.  Any otherwise taxable interest in real property, leased for
an original term of 35 years or more and used exclusively by the
lessee for the operation of a public park that is uniquely of a
governmental character, as described in paragraph (4) of subdivision
(b) of Section 231, is, during the term of the lease, within the
exemption provided for in subdivision (b) of Section 4 and Section 5
of Article XIII of the California Constitution, if all of the
following conditions are met:
   (a) The lessee is a charitable foundation that has received a
determination that it is a charitable organization as described in
Section 501(c)(3) of the Internal Revenue Code.
   (b) The operation of the public park by the lessee is within the
tax exempt purposes of the lessee.
   (c) The lessee acquired the leasehold in the property by means of
a charitable donation.
   (d) Under the terms of the lease, the lessee will acquire the
entire ownership interest in the property on or before the end of the
lease term.
237.  (a) (1) Subject to the requirements set forth in paragraph
(2), there is exempt from taxation under this part that portion of
the assessed value of property, owned and operated by a federally
recognized Indian tribe or its tribally designated housing entity,
that corresponds to that portion of the property that is continuously
available to, or occupied by, lower income households, as defined in
Section 50079.5 of the Health and Safety Code or applicable federal,
state, or local financing agreements, at rents that do not exceed
those prescribed by Section 50053 of the Health and Safety Code, or
rents that do not exceed those prescribed by the terms of the
applicable federal, state, or local financing agreements or financial
assistance agreements.
   (2) The exemption set forth in subdivision (a) applies only if the
property and entity meet the following requirements:
   (A) At least 30 percent of the property's housing units are either
continuously available to, or occupied by, lower income households,
as defined in Section 50079.5 of the Health and Safety Code or
applicable federal, state, or local financing agreements, at rents
that do not exceed those prescribed by Section 50053 of the Health
and Safety Code, or rents that do not exceed those prescribed by the
terms of the applicable federal, state, or local financing agreements
or financial assistance agreements.
   (B) The housing entity is nonprofit.
   (C) No part of the net earnings of the housing entity inure to the
benefit of any private shareholder or individual.
   (b) In lieu of the tax imposed by this part, a tribe or tribally
designated housing entity may agree to make payments to a county,
city, city and county, or political subdivision of the state for
services, improvements, or facilities provided by that entity for the
benefit of a low-income housing project owned and operated by the
tribe or tribally designated housing entity. Any payments in lieu of
tax may not exceed the estimated cost to the city, county, city and
county, or political subdivision of the state of the services,
improvements, or facilities to be provided.
   (c) A tribe or tribally designated housing entity applying for an
exemption under this section shall provide the following documents to
the assessor:
   (1) Documents establishing that the designating tribe is federally
recognized.
   (2) Documents establishing that the housing entity has been
designated by the tribe.
   (3) Documents establishing that there is a deed restriction,
agreement, or other legally binding document requiring that the
property be used in compliance with subparagraph (A) of paragraph (2)
of subdivision (a).
   (d) This exemption shall be known as the "tribal housing
exemption."
241.  (a) The first fifty thousand dollars ($50,000) of personal
property that consists of hand tools owned and supplied by an
employee that are required as a condition of that employee's
employment are exempt from taxation.
   (b) For purposes of this section:
   (1) "Hand tools" means hand-held implements and equipment,
including hand-held power tools, of which any one may be transported
to and from the workplace and which are necessary for the ordinary
and regular performance of the employee's work, and also means the
appropriate storage containers used to store those implements and
that equipment.
   (2) "Hand tools owned and supplied by an employee" means only
those hand tools that are either owned by the employee prior to the
employment or acquired and paid for by the employee during the
employment, that the employee will continue to own after termination
of the employment.
   (3) "Employee" means any individual who is employed by an employer
that directly or indirectly supervises that person and exercises
control over the wages and working conditions of individual workers.
"Employee" does not include a self-employed individual or an
independent contractor.