Many religious and non-profit organizations are exempt from federal and state income tax, but there is no general exemption similar to sales and property tax. In Los Angeles County, California, non-profit organizations may be eligible for a welfare exemption from property tax. To apply for this exemption, you must submit an application to the Assessor's Office in your county. You can find more information about the exemption here, and a list of county evaluators here.
Additionally, if you are a qualifying non-profit organization building a qualified facility, you can issue the CDTFA-230-C-2 exemption certificate to your suppliers to purchase qualifying construction materials and supplies. In addition to the welfare exemption, non-profits must also comply with California Penal Code section 320.5, which prohibits raffles unless conducted by an eligible organization in accordance with applicable laws and regulations. Lastly, all tax-exempt organizations must file an annual informational statement (Form 990) with the federal government. Running a non-profit organization in Los Angeles County, California comes with certain tax implications that must be taken into consideration. It is important to understand the welfare exemption and other applicable laws and regulations in order to ensure compliance with all relevant tax requirements.
