As property owners in Los Angeles begin to take steps to recover from the impact of the wildfires, one important tool to obtain financial relief is to apply for a property tax reduction. Whether a home was completely lost, partially damaged, or even located close to other properties damaged by the fire, property owners are likely eligible for property tax based on a reduction in the property’s value. California law allows for the reassessment of properties that have suffered damage due to misfortune or calamity, including fire, potentially reducing property tax obligations.
California Revenue and Tax Code Section 170: Relief for Damaged or Destroyed Property
Under Section 170 of the California Revenue and Taxation Code, properties damaged or destroyed due to misfortune or calamity can be reassessed to reflect their post-damage value. This reassessment is intended to reduce property tax burdens temporarily until the property is restored.
To qualify for relief under Section 170, property owners must:
- Demonstrate that the damage was not the owner’s fault.
- File a claim with the Los Angeles County Assessor within 12 months of the event.
- Ensure the property has sustained damage amounting to at least $10,000 in market value.
California Revenue And Tax Code Section 51(a)(2): Temporary Value Adjustments for Declines in Property Value
Section 51(a)(2) of the California Revenue and Taxation Code allows for a temporary reduction in the assessed value of a property when its current market value falls below its Proposition 13 factored base year value. This adjustment is often applicable when disasters significantly impact the local real estate market or property conditions.
Unlike Section 170, which is tied specifically to physical damage, Section 51(a)(2) addresses a general decline in market value. This means that even if a property is not physically damaged, owners may still be eligible for tax relief if the wildfire negatively impacts its market value.
Applying for Reassessment
To initiate this process, property owners must file an “Application for Reassessment: Property Damaged or Destroyed by Misfortune or Calamity” (Form ADS-820) with the Los Angeles County Assessor’s Office. This form is available on the Assessor’s website:
Filing this application enables the Assessor’s Office to reassess the property based on its current condition, potentially lowering the property’s assessed value and, consequently, the property tax owed.
Additional Resources and Assistance
For more detailed information on disaster relief and property tax reassessment, property owners can visit the Los Angeles County Assessor’s Disaster Relief page:
- Disaster Relief Information: Los Angeles County Assessor – Disaster Relief
Additionally, the California State Board of Equalization provides comprehensive details on disaster relief measures:
- Statewide Disaster Relief Information: California State Board of Equalization – Disaster Relief
Property owners are encouraged to contact the Los Angeles County Assessor’s Office directly for personalized assistance:
- Email: relief@assessor.lacounty.gov
- Phone: (213) 974-8658
By taking advantage of these provisions, property owners affected by wildfires can alleviate some of the financial burdens during the recovery process. As with all tax-related matters, property owners are encouraged to contact their tax advisor to insure that they are obtaining accurate and complete advice.
Please call or email us at 213-973-9439 or info@esquirereb.com to further discuss how Esquire Real Estate Brokerage can help you in the Southern California real estate market.
