Disaster Relief

Revenue and Taxation Code section 170 provides that if a major 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. In such cases, the county assessor will immediately 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.

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 mobilehomes - it is not available to property that is not assessable, such as state licensed mobilehomes or household furnishings.

To qualify for property tax relief under section 170, you must file a calamity claim form with your county assessor’s office within 12 months from the date the property was damaged or destroyed.

If your property has been substantially damaged or destroyed in a Governor-proclaimed disaster and you have filed a disaster relief claim with the county assessor to reduce your taxes, you may file a claim to postpone the next installment of property taxes that occurs immediately after the disaster. If you file a “property tax deferral claim” with the county assessor before the next property tax installment payment date, that payment will be postponed without penalty or interest until the county assessor has reassessed the property, and you receive a corrected tax bill.

To qualify for deferral, for property receiving a homeowners' exemption, “substantial disaster damage” means damage amounting to at least 10 percent of its fair market value or $10,000, whichever is less. For all other property, the damage must be at least 20 percent of value. However, tax deferral is not available where property taxes are paid through impound accounts.

Yes, section 69 provides for this relief to you under certain circumstances:

The damaged property must amount to more than 50 percent of its full cash value immediately prior to the disaster. This applies to any type of real property.

The property must be transferred to a comparable replacement property, acquired or newly constructed, within the same county and within five years after the disaster.

Comparability is crucial - the replacement property must be similar in size, utility, and function to the property which it replaces.

The replacement property must not exceed 120 percent of the full cash value of the property damaged or destroyed. Any amount of the full cash value of the replacement property that exceeds 120 percent of the full cash value of the damaged property (immediately prior to the damage) shall be added to the adjusted base year value of the damaged property. The sum of these amounts shall become the replacement property's replacement base year value.

Under section 69.3, a principal residence that was damaged in an area that was a Governor-proclaimed disaster that occurred on or after October 20, 1991 may have its base year value transferred to a replacement residence in a different county only if the county has adopted an ordinance that allows such taxable value transfers. As of December 2012, there are ten counties that have such an ordinance: Contra Costa, Los Angeles, Modoc, Orange, San Francisco, Santa Clara, Solano, Sonoma, Sutter, and Ventura. The replacement residence must meet the following criteria:

It must be purchased within three years of the disaster.

Its market value must be of equal or lesser value than the market value of the damaged property immediately prior to the date of the disaster. Depending upon the year in which the replacement property is purchased, the market value of the damaged property is adjusted up to 115 percent when comparing with the replacement property.

It must be eligible for the homeowners’or disabled veterans’ exemption (your principal place of residence).

Claims for this exclusion must be filed with the county assessor within three years of the purchase of the replacement property.

Yes. In addition to the above provisions, if a manufactured home is totally destroyed in a Governor-declared disaster, it may be replaced by a comparable unit without an increase in either the property taxes or the vehicle license and registration fees.

If you disagree with the value established by the county assessor’s office, you must file an appeal within six months from the date on the notification of proposed values. A hearing will be scheduled by your County Assessment Appeals Board.

Yes. Temporary absence from a dwelling for repairs made necessary by a natural disaster will not result in the loss of your homeowner’s exemption as long as you have not established permanent housing elsewhere.