S.F. No. 5286 Summary

• Modifies property tax exemption criteria for institutions of purely public charity that are exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code.

• Allows charitable organizations to qualify for exemption even if they fail to meet factors related to material donations/government grants, material number of reduced/free beneficiaries, or unrestricted beneficiary access, if they provide reasonable justification to the assessor.

• Clarifies that rent assistance provided to tenants and government financing assistance or tax credits conditioned on affordable housing set-asides are not considered gifts or donations for purposes of exemption eligibility for rental housing operators.

• Creates a new exemption category for "eligible charities" where property is exempt if a substantial part is actually occupied by charity personnel in furtherance of the charitable purpose.

• Effective date is January 1, 2025 for taxes payable in 2025 and thereafter.