BACKGROUND: (CONT'D)
On March 24, 2014, the Lafayette Christian Church applied to the Assessor’s Office for a welfare exemption from property tax for the 2014-2015 tax year for one of its properties located at 3213 Sharon Court in Lafayette. The Church maintained that the property was used for exempt religious activities during the relevant period. These activities include acting as a parsonage from March 1, 2013 through October 1, 2013, serving as a recruitment tool for new ministers from late 2013 through early 2014 and providing a place to house furniture, appliances and church supplies, among other uses.
On June 17, 2014, the Assessor’s Office wrote to the Church denying the claim for refund on the basis that the property was not used as a parsonage on January 1, 2014, the statutory date used to determine eligibility for the exemption for 2014-2015 tax year. The Assessor’s Office maintained that the property did not qualify for an
exemption because the vacant property was not being used for a religious purpose, despite the Church’s intention of doing so in the future. On June 22, 2015, the Church filed a claim for property tax refund for the 2014-2015 tax year with the County for $9,806.14 after the parties attempted unsuccessfully to resolve their differences. (Attached.)
Revenue and Taxation Code section 214 provides that property that is used exclusively for religious purposes may be eligible for an exemption from ad valorem property taxation if a taxpayer applies for a welfare exemption. Housing used for religious purposes may fall within this exemption. See, e.g., In House of Rest of the Presbyterian Church in the USA v. County of Los Angeles (1957) 151 Cal.App.2d 523. In such a case, the taxpayer may be eligible for a refund of property taxes paid on the basis that taxes should not have been levied on the property. [Rev. & Tax. Code, §§ 5096(c), 5097(a)(2).] The Board of Supervisors has discretion to determine whether the taxpayer qualifies for the refund of property taxes.
To be eligible for 100 percent of the exemption, the deadline for submitting a welfare exemption claim is on or before February 15. When a claim is not filed on or before February 15, 90 percent of any tax, penalty, or interest may be canceled or refunded if the claim is filed on or before January 1 of the next calendar year. In this instance, the taxpayer filed on March 24, 2014, two months after the February 15, 2014 filing deadline for the 2014-2015 year. If the Board determines that the property located at 3213 Sharon Court in Lafayette should have been eligible for the welfare exemption for the 2014-2015 tax year, the Lafayette Christian Church would be eligible for a refund of 90 percent of the claim, in the approximate amount of $8,972.42.
Property tax refunds ordered by the Board are paid by the Auditor-Controller. [Rev. & Tax. Code, § 5101; see also Rev. & Tax. Code, § 5151.]
CONSEQUENCE OF NEGATIVE ACTION:
Failure to take the recommended action may prevent the Lafayette Christian Church from having its claim concerning the property-tax exempt use of the property heard.
CLERK'S ADDENDUM
OPENED the public hearing and received testimony on the claim for property tax refund from: Alaine Brandt on behalf of Lafayette Christian Church; and Beth Grose and Gus Kramer of County Assessor's office on behalf of Contra Costa County;
Public commentary was provided by Ralph Hoffmann, resident of Walnut Creek, who spoke on the importance of separation of church and state.
CONSIDERED the Claim.
Supervisor Mitchoff moved, as seconded by Supervisor Piepho, to deny the claim.
(AYES: III, IV; NOES: I, II ABSENT: V ABSTAIN: None)
The motion did not receive a majority vote.
Supervisor Andersen moved, as seconded by Supervisor Gioia, to CONTINUE the hearing to October 6, 2015 at 9:30 am.
(AYES: I, II, III, IV; NOES: None; ABSENT: V)