Property owners in California who’ve been affected by the October 2017 wildfires could qualify for temporary reductions in the assessed value of their property if the disaster-related damage exceeds $10,000. Reassessment could mean a lower property tax bill for the period between damage and repair or rebuilding.

Applying for Temporary Relief

Section 170 of the California Revenue and Taxation Code requires an Application for Reassessment of Property Damaged by Misfortune or Calamity form to be submitted within one year of the date of damage or within 60 calendar days of the sending of the application to the Assessor's Office. Photographs and any other documentation, such as repair estimates, should accompany the form.

Delaying Payments

Since the Governor of California, Jerry Brown, has proclaimed many of the counties affected by the wildfires to be in a state of emergency, owners of real property and manufactured homes may be eligible under Revenue and Taxation Code Section 194.1 to delay payment of the December 10, 2017, property tax installment without penalty.

If all of the conditions for property tax deferral are met, and a property tax deferral claim is timely filed, taxes deferred pursuant to Section 194.1 are due 30 days after receipt by the owner of the corrected tax bill.

We’re Here to Help

For more information about how you or your business may be able to reduce and/or delay property taxes on account of damages resulting from the October 2017 California wildfires, contact your Moss Adams professional.

Contacts

Renee Bartlett, State and Local Tax Services Senior Manager | (310) 481-1221

Vladimir Kolossarian, State and Local Tax Services Manager | (310) 295-3770