The Howard Jarvis Taxpayers Association released the following statement on January 16, 2025:
As Californians grapple with the aftermath of the severe wildfires in Southern California, there is some good news for homeowners whose property was damaged or destroyed: they can rebuild their homes without any change to the taxable value.
All property in California is protected by Proposition 13, regardless of when it was purchased. The taxable value, or base-year assessment, is set at the time of purchase and thereafter it can increase by no more than 2% per year, regardless of increases in market value. This protects property owners from being taxed out of their property by rising real estate values.
When a property is damaged or destroyed, property owners can request a “misfortune or calamity” reassessment by filing a form with the county assessor within 12 months of the date of loss. This will reduce or eliminate property taxes until the home is rebuilt. Property taxes may still be owed on the assessed value of the land, but that value may have been reduced by the condition of the property after the disaster.
After a home is rebuilt, property owners get their previous “Prop. 13” tax assessment back again. The property is not reassessed as if the home is new construction. Property owners will pay the same tax bill they would have paid if the disaster had not occurred. (If the home is rebuilt with additional square footage, that portion of the home may be assessed at market value and added to the previous assessment, but the entire home would not be reassessed.)
Homes that were not destroyed but have experienced a decline in value because of the surrounding conditions are eligible for a decline-in-value reassessment that will reduce the property tax bill, if the assessed value is higher than the current market value. When the value of the property rises in the future, the assessed value will be adjusted up again, but not above what it would have been under Proposition 13 if the decline in value had not occurred.
Homeowners who have lost their homes in the fires and wish to move to a new area may take their Prop. 13-protected assessment with them to a new home. Disaster victims may transfer their base-year assessed value anywhere in the state.
Forms and more information are available on the website of the Los Angeles County Assessor, assessor.lacounty.gov. It is not necessary for property owners to pay any fees to any party to file these forms for them. It’s completely free and the staff at the Assessor’s office is ready to help.
For more information about the resources available in Los Angeles and to download the claim form (ADS-820), go to https://assessor.lacounty.gov/tax-relief/disaster-relief or call (213) 974-3211.
The Board of Equalization also has general information for property owners affected by the fires and other disasters that may be eligible for property tax relief, go to: https://www.boe.ca.gov/proptaxes/disaster-relief.htm
State Treasurer Fiona Ma has also put together a list of helpful links for victims of wildfires and other natural disasters: https://www.treasurer.ca.gov/STO-Wildfire-Recovery-Resources-Guide.pdf
For more information: E-mail us at info@hjta.org or call 916-444-9950.
About the Howard Jarvis Taxpayers Association: HJTA is a member-supported nonprofit organization with offices in Sacramento and Los Angeles. HJTA advocates for the interests of taxpayers in the courts, in the legislature and on the ballot. It was founded and is named for Howard Jarvis, the driving force behind Proposition 13, the 1978 initiative that protected Californians from being taxed out of their property by rising real estate values. Prop. 13 limited annual increases in property taxes to 2% per year while the property remains under the same ownership.