Disaster Relief
If a major calamity, such as fire or flooding, damages or destroys your property, you may be eligible for property tax relief. In such cases, the Assessor's office will reappraise the property to reflect its damaged condition. In addition, when you rebuild it in a like or similar manner, the property will retain its previous value for tax purposes. To qualify for property tax relief, you must file an Application for Reassessment (ACR 702) with the Assessor's office within 12 months from the date the property was damaged or destroyed. In addition, the loss must exceed $10,000.
On November 3, 2020, California voters passed AB 2013, Disaster New Construction Exclusion. For property that has been substantially damaged or destroyed by a Governor-declared disaster on or after January 1, 2017, AB 2013 adds a new construction property tax relief for comparable property that is reconstructed on the site of the damaged or destroyed property under the following conditions:
- Disaster: The property must be substantially damaged or destroyed by a disaster, misfortune, or calamity, as declared by the Governor. RTC section 70.5(a) and (c) (3)
- Substantially Damaged or Destroyed: The property is substantially damaged or destroyed if it sustains physical damage amounting to more than 50% of its full cash value immediately prior to the disaster. RTC section 70.5(c) (1)
- Comparable Reconstruction: The reconstructed property is comparable if it is similar in function, size, and use. RTC section 70.5(c) (2)
- Partial Relief: If the full cash value of the reconstructed property exceeds 120% of the full cash value of the original property, the amount above 120% will be added to the transferred base year value. RTC section 70.5(b) (2) (B)
- Timing: Construction must be completed within five years of the date of the damage or destruction. RTC section 70.5(a)