Property Tax Relief Options for Homes Damaged by Fires
In the wake of devastating wildfires, many homeowners and business owners are left grappling with the loss of their properties. However, amidst the chaos and destruction, there is a glimmer of hope in the form of property tax relief options. If you’re one of the many individuals affected by the recent fires, here’s everything you need to know about how you can receive immediate and long-term relief on your property taxes.
Immediate Steps to Take
The first crucial step for any homeowner or business owner with $10,000 or more in property damage is to file a form called “Property Damaged or Destroyed by Misfortune or Calamity” or “ADS-820” with the Los Angeles County Assessor’s Office. This form must be submitted within one year following the date of the disaster, until January 2026.
Upon approval, the assessor’s office will reassess your property, with the taxable value based solely on the land if your home or business was destroyed. This lower value will remain in effect until your property is fully repaired, restored, or reconstructed. Additionally, an executive order signed by Gov. Gavin Newsom allows you to defer this year’s property taxes until April 2026 without penalty.
Rebuilding Your Home
If you choose to rebuild your home to its previous state or even expand it by up to 20%, you’ll pay the same property taxes as before. This unique property tax system in California, established by Proposition 13 in 1978, limits property taxes to 1% of a home’s taxable value. Therefore, by retaining the existing taxable value for the new home, you can avoid increased tax bills.
Moving Options
For those considering moving to a new home within L.A. County, maintaining your prior taxable value is possible if the new property’s market value doesn’t exceed 20% of your previous home’s value. This transfer of taxable value applies to homes elsewhere in California as well, with specific rules and benefits depending on the county.
It’s important to note that you can only receive property tax relief benefits for either rebuilding or moving, not both. To learn more about these options and how they apply to your situation, connect with the county assessor’s office for personalized assistance.
Expert Advice
Assessor Jeff Prang emphasizes the importance of filing the necessary forms to ensure immediate relief for affected homeowners. He warns against falling victim to scams that promise additional tax relief for a fee, emphasizing that homeowners can navigate the process themselves without external assistance. By staying informed and utilizing available resources, homeowners can take advantage of the property tax relief options available to them.
Whether you choose to rebuild or move, these options offer a lifeline to homeowners seeking financial relief in the aftermath of wildfires. Make sure to explore all available resources and consult with experts to make informed decisions about your property tax situation.