"Nonprofit, special use property" means property which is operated for a special nonprofit, tax-exempt use such as a school, church, cemetery, hospital, or similar property. "Nonprofit, special use property" does not include property owned by a public entity.
§ 1235.155.Nonprofit Special Use Property
Title 7. Eminent Domain Law · Chapter 2. Principles of Construction; Definitions · Article 2. Words and Phrases Defined · Enacted 1992 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1235.155 defines "nonprofit, special use property" as property operated for a special nonprofit, tax-exempt purpose such as a school, church, cemetery, or hospital, while expressly excluding any property that a public entity owns.
Full Text of § 1235.155
Plain-English Summary
Some property doesn't trade on the open market the way a typical commercial or residential parcel does, which makes ordinary comparable-sales valuation difficult or impossible. Section 1235.155 identifies that category by name: property operated for a special nonprofit, tax-exempt use, giving schools, churches, cemeteries, and hospitals as examples, along with similar property.
The second sentence draws a firm boundary -- "nonprofit, special use property" does not include property owned by a public entity, even if that property serves a similar nonprofit-style function. The definition is aimed at privately owned institutional property, not government-owned facilities.
This term matters most at the valuation stage. Section 1263.321 sets out a special valuation method for nonprofit special use property precisely because there's no relevant, comparable market for property like a church or cemetery, so the ordinary fair-market-value approach doesn't work well.
Frequently Asked Questions
What kinds of property count as "nonprofit, special use property"?
Property operated for a special nonprofit, tax-exempt use, such as a school, church, cemetery, hospital, or similar property.
Does property owned by a public entity qualify as "nonprofit, special use property"?
No. Section 1235.155 expressly excludes property owned by a public entity from this definition.
Why does this category get its own definition?
Because § 1263.321 uses it to set a special valuation method for property, like a church or cemetery, that has no relevant comparable market for ordinary fair-market-value appraisal.
Amendment History
Added by Stats. 1992, Ch. 7, Sec. 1. Effective January 1, 1993.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
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