Can my organization claim the Welfare Exemption for prior years? Is it too late to file now?
An organization may, subject to a late-filing penalty, file a claim for the Welfare Exemption without limitation. However, the law limits refunds of taxes paid to four years from the date the payment was made. Thus, if an organization were to qualify for the Welfare Exemption in December of 1999 for years 1993 through 1999, had paid taxes on its real property timely for all those years, and filed claims for refund of taxes paid, it could expect a refund of taxes paid for the first installment due November 1, 1999, for both installments due in 1996, 1997, and 1998, and possibly for the first installment due November 1, 1995. No refund would be possible for taxes paid timely for 1993 or 1994, since these years were beyond the four-year statute of limitations (section 5097(a)(2), Revenue and Taxation Code).
