For the most up-to-date content on recent fires, see our Tax Planning Guide’s Disaster Relief section.
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.