Property Tax Relief from California Wildfires Damage
by
Renee Bartlett, Senior Manager, and
Marty Tschida, Principal, State and Local Tax Services
This Alert was updated October 28, 2020.
Property owners in California who’ve been affected by 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 be submitted within one year of the date of damage or within 60 calendar days of when the Assessor's Office sends the application. Photographs and any other documentation, such as insurance and repair estimates, should accompany the form.
Delaying Payments
Since the Governor of California, Gavin Newsom, 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, 2020, 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 or delay property taxes on account of damages resulting from the California wildfires, contact your Moss Adams professional.
Marty Tschida has been in public accounting since 2007. Marty has practiced public accounting since 2007. He specializes in state and local tax consulting and compliance services, including property tax, sales and use tax, and income and franchise tax. He can be reached at (303) 558-7660 or marty.tschida@mossadams.com.
Renee Bartlett has been in property tax consulting since 1981. She has concentrated property tax experience in California and has worked on personal and real property issues across the country. She can be reached at 310-481-1221 or renee.bartlett@mossadams.com.