To anyone affected by the recent wildfires or any other lifechanging disaster, we are deeply sorry for your tragic loss.
Revenue and Taxation Code Section 170 provides that if a calamity such as fire, earthquake, or flooding damages or destroys your property, you may be eligible for property tax relief if the county where your property is located has adopted an ordinance that allows property tax relief to owners of damaged or destroyed property, without fault from the assessee. In such cases, the county assessor will reappraise the property to reflect its damaged condition. In addition, when it is rebuilt in a like or similar manner, the property will retain its prior value (Proposition 13) for tax purposes. All California counties have adopted an ordinance for disaster relief.
To qualify for Section 170 property tax relief, you must file a claim with the county assessor within the time specified in your county ordinance, or 12 months from the date of damage or destruction, whichever is later. The loss estimate must be at least $10,000 of the current market value to qualify the property for this relief. The property will be reassessed according to its damaged state and property taxes will be adjusted accordingly.
This property tax relief is available to owners of real property, business equipment and fixtures, orchards or other agricultural groves, and to owners of aircraft, boats, and certain manufactured homes – it is not available to property that is not assessable, such as state licensed manufactured homes or household furnishings.
Due to the 1978 passage of Proposition 13, all California property base year tax
assessments are indexed (increased) annually based on the California Consumer Price
Index (CCPI) or 2% whichever is less.
Proposition 13 was designed to protect property owners from soaring tax assessments
based on California’s rapid Real Estate value growth. Unfortunately, Proposition 13
focused on property value increases and did not address property value decreases.
Even if a property is damaged or destroyed, taxpayers will receive tax bills based on
the property’s original indexed base year values prior to any calamity. Annual tax
assessments become a lien on the property every January 1st regardless and must be
paid timely to avoid steep, non-refundable late fees and penalties.
