Disaster Relief

Reduction of Assessed Value while Property is in its Damaged Condition

  • Revenue and Taxation Code section 170 provides that if a calamity such as fire, earthquake, or flooding damages or destroys your property, you may be eligible for property tax relief if the county where your property is located has adopted an ordinance that allows property tax relief to owners of damaged or destroyed property, without fault from the assessee. In such cases, the county assessor will reappraise the property to reflect its damaged condition. In addition, when it is rebuilt in a like or similar manner, the property will retain its prior value (Proposition 13) for tax purposes. All California counties have adopted an ordinance for disaster relief.
  • To qualify for property tax relief, you must file a claim with the county assessor within the time specified in your county ordinance, or 12 months from the date of damage or destruction, whichever is later. The loss estimate must be at least $10,000 of current market value to qualify the property for this relief. The property will be reassessed according to its damaged state and property taxes will be adjusted accordingly.
  • This property tax relief is available to owners of real property, business equipment and fixtures, orchards or other agricultural groves, and to owners of aircraft, boats, and certain manufactured homes – it is not available to property that is not assessable, such as state licensed manufactured homes or household furnishings.

Base Year Value Transfer to Replacement History

  • Existing law also allows three different types of base year value transfers for property owners whose real property was substantially damaged or destroyed by a disaster for which the Governor proclaimed a state of emergency. Each of these provisions was enacted by Constitutional amendment and implemented by statute.
  • On June 3, 1986, the voters of California approved Proposition 50, adding subdivisions (e) and (f) to section 2 of article XIII A of the California Constitution to allow the transfer of the base year value of real property that is substantially damaged or destroyed by a disaster for which the Governor proclaims a state of emergency to comparable replacement property located within the same county. These provisions are implemented by Revenue and Taxation Code (RTC) section 69.
  • On November 2, 1993, California voters approved Proposition 171, which amended section 2(e) of article XIII A, to allow the base year value of a principal residence substantially damaged or destroyed in a disaster for which the Governor proclaims a state of emergency to be transferred to a replacement principal residence located in another county, provided that the replacement residence is located in a county that has adopted an ordinance to accept such base year value transfers.2 These provisions are implemented by RTC section 69.3.
  • On November 3, 2020, California voters approved Proposition 19, which added section 2.1 to article XIII A, to allow, as relevant here, an owner of a primary residence who is a victim of a wildfire or natural disaster to transfer the taxable value of their original primary residence to a replacement primary residence that is purchased or newly constructed as that person's principal residence within two years of the sale of the original primary residence. Proposition 19 became operative as of April 1, 2021.
  • To qualify for property tax relief under section 170, you must file a claim with the county assessor within 12 months from the date of damage or destruction, or the time specified in your county ordinance, whichever is later. There must be at least a $10,000 estimated loss of current market value to qualify the property for this relief.

    After an application is processed by the county assessor's office, a notice of proposed new assessment will be sent to you. Subsequently, a separate supplemental refund will be made based on the amount of reduction. The refund will be prorated from the month in which the disaster occurred to the end of the fiscal year or completion of new construction, whichever is first. You do not have to file a separate claim for refund. However, you must still pay your regular tax bill.

    The form and its title differ from county to county; therefore, you must contact your county assessor for an application for reassessment for property damaged or destroyed by misfortune or calamity. In some cases, the form may be downloaded from the county's website. You may find your assessor's contact information by visiting the Listing of County Assessors.

  • For relief under section 69, a claim must be filed with the Assessor of the county where the damaged/destroyed home is located.
  • For relief under section 69.3, a claim must be filed with the Assessor of the county in which the replacement property is located within three years after the replacement property is acquired or newly constructed.
  • For relief under section 2.1(b) of article XIII A of the California Constitution (RTC section 69.6), a claim must be filed with the Assessor of the county in which the replacement property is located within three years of the purchase or new construction of the replacement property for full relief. If this period is missed, prospective relief is available for the lien date of the assessment year in which the claim is filed.

Chronological List of Governor-Proclaimed Disasters

Disaster Relief Quick Reference Chart

While section 170 is one form of relief that may be available when a disaster strikes, depending on the nature of your property, you may be eligible for additional relief. The chart below lists additional relief that may be available to you based on property type and the type of disaster that occurred. The listed Revenue and Taxation Code will provide the requirements of each relief option.

Disaster Relief Quick Reference Chart
Type of Relief Available Property Type Type of Disaster Revenue and Taxation Code
New construction exclusion Real property only Any disaster or calamity Section 70
Section 170
New construction exclusion Real property only Governor-proclaimed Section 70.5
Section 170
New construction exclusion All property types Governor-proclaimed; Any disaster or calamity Section 170
Base year transfer within same county All property types Governor-proclaimed Section 69
Base year transfer to another county Principal place of residence Governor-proclaimed Section 69.3
Base year transfer anywhere in CA Principal place of residence Governor-proclaimed Section 69.6 (effective April 1, 2021)
Base year transfer Principal place of residence —over 55 or physically disabled Any disaster or calamity Section 69.5 (ended March 31, 2021)
Base year transfer Manufactured home (license fee or property tax) Governor-proclaimed Section 172 & 172.1
New construction exclusion; Base year transfer Manufactured home (property tax only) Any disaster or calamity Section 5825

Letters To Assessors(LTAs) The LTAs provide an ongoing advisory service for county assessors and others interested in the property tax system in California. The letters present Board staff's interpretation of rules, laws, and court decisions on property tax assessment. The following LTAs pertain to assessment or procedural issues involving disaster relief in California.

Letters to Assessors
Title Letter to Assessor
Application of New Construction Exclusion 79/39, 79/207, 81/123, 82/12, 82/49
Assessment Appeal Filing Deadline Extension 2001/063, 2002/040
Base Year Value Transfer 87/23, 92/45, 94/49, 95/16, 97/58, 2006/015, 2006/052, 2010/010, 2012/012, 2021/026
Comparability Standards 87/23, 92/45
Disabled Persons (Proposition 110) 2002/016, 2006/010
Disabled Veterans' Exemption 2008/082
Fault 96/59
Filing Deadline Extension 2001/077
Fire Prevention Fee 2014/071
Frost Damage 91/13, 92/09, 99/52, 2007/057
Governor-Proclaimed Disasters (list of) 2000/066, 2006/015, 2017/044, 2018/026
Homeowners' Exemption 2004/069, 2005/073, 2006/049, 2007/051, 2008/063, 2009/053, 2011/004
Intercounty Transfer of Base Year Value (Proposition 171) 94/49, 95/16, 2012/012
Manufactured Homes 82/139, 88/72, 99/87
New Construction Exclusion 79/39, 79/207, 81/123, 82/12, 82/49
Northridge Earthquake, Extension of Time Limits 97/58
Ordinances for Intercounty Transfers 95/06, 2001/009, 2003/057, 2003/074, 2009/008, 2014/040, 2018/026
Persons Over Age 55 (Propositions 60/90) 2002/016, 2006/010
Property Tax Deferral 86/33, 87/98
Proposition 50 (Intracounty Transfers) 87/23, 92/45, 2006/052, 2012/012
Proposition 171 (Intercounty Transfers) 94/49, 95/16, 2009/008, 2012/012
Removal of Property 86/09
Repair, Restoration, or Reconstruction 95/31
Replacement Property 87/23, 94/49, 97/58, 2006/052
Restricted Access 2001/102, 2002/037, 2006/031
September 11 Events 2001/063, 2001/077, 2001/102, 2002/009, 2002/037, 2006/031
Substantially Damaged or Destroyed 2012/012
Supplemental Assessments 83/128, 85/75, 86/09, 95/31
Trees and Vines 91/13, 92/09, 99/52, 2007/057, 2008/084

Annotated Legal Opinions Annotated legal opinions are summaries of the conclusions reached in selected legal rulings of California State Board of Equalization counsel. The following legal opinions pertain to questions involving disaster relief:

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If your property has been damaged by a calamity, you need to file a disaster relief claim with the county assessor. This will allow your current property taxes to be reduced for that portion of the property damaged or destroyed. This reduction will be from the first of the month in which the damage occurred, and will remain in effect until the property is rebuilt or repaired. Some county assessors have the authority to reduce a property's value for damage without a disaster relief claim. Please check with your county assessor's office to verify whether a claim is required.

In addition, if your property has been substantially damaged or destroyed in a Governor-proclaimed disaster and you have either filed a disaster relief claim with the county assessor to reduce your taxes or have been granted disaster relief by the assessor, you may file a claim to postpone the next installment of property taxes that occurs immediately after the disaster. If you file a "property tax deferral claim" with the county assessor before the next property tax installment payment date, that payment will be postponed without penalty or interest until the county assessor has reassessed the property and you receive a corrected tax bill.

To qualify for deferral, for property receiving a homeowners' exemption, "substantial disaster damage" means damage amounting to at least 10 percent of its fair market value or $10,000 whichever is less. For all other property, the damage must be at least 20 percent of value. However, tax deferral is not available where property taxes are paid through impound accounts.

If your property has been substantially damaged or destroyed in a Governor-proclaimed disaster, you may be eligible for a reinstatement of your home’s previous base year value. To be eligible, you must file a disaster relief claim with the county assessor to reduce your taxes and rebuild the property in a like or similar manner. Alternatively, you may choose to buy another comparable property and transfer your base year value to the new property. You will not be able to do both.

Can I buy another house in the same county and transfer the base year value of my damaged house to my new house?

Yes, section 69 provides for this relief to you under certain circumstances:

The damaged property must amount to more than 50 percent of its full cash value immediately prior to the disaster. This applies to any type of real property, not just residences.

The property must be transferred to a comparable replacement property, acquired or newly constructed, within the same county and within five years after the disaster.

Comparability is crucial – the replacement property must be similar in size, utility, and function to the property which it replaces.

The replacement property must not exceed 120 percent of the full cash value of the property damaged or destroyed. Any amount of the full cash value of the replacement property that exceeds 120 percent of the full cash value of the damaged property (immediately prior to the damage) shall be added to the adjusted base year value of the damaged property. The sum of these amounts shall become the replacement property's replacement base year value.

Please contact your county assessor's office for an application.

Can I buy another house in a different county and transfer the base year value of my damaged house to my new house?

Under section 69.3, a principal residence that was damaged in an area that was a Governor-proclaimed disaster that occurred on or after October 20, 1991 may have its base year value transferred to a replacement residence in a different county only if the county has adopted an ordinance that allows such taxable value transfers. As of June 7, 2018, there are 11 counties that have such an ordinance: Contra Costa, Los Angeles, Modoc, Orange, San Diego, San Francisco, Santa Clara, Solano, Sonoma, Sutter, and Ventura. The replacement residence must meet the following criteria:

  • It must be purchased within three years of the disaster.
  • Its market value must be of equal or lesser value than the market value of the damaged property immediately prior to the date of the disaster. Depending upon the year in which the replacement property is purchased, the market value of the damaged property is adjusted up to 115 percent when comparing with the replacement property.
  • It must be eligible for the homeowners' or disabled veterans' exemption (your principal place of residence).
  • Claims for this exclusion must be filed with the county assessor within three years of the purchase of the replacement property.

Under article XIII A, section 2.1(b), an owner of a principal residence who is a victim of a wildfire or Governor proclaimed natural disaster may transfer the taxable value of their primary residence to a replacement primary residence located anywhere in this state, regardless of the location or value of the replacement primary residence, that is purchased or newly constructed as that person's principal residence within two years of the sale of the original primary residence.

  • The claimant must be an owner and a resident of the original property, and therefore eligible for the homeowners' or disabled veterans' exemption, either at the time of its sale or within two years of the purchase or new construction of the replacement dwelling.
  • The damaged property must amount to more than 50 percent of its full cash value immediately prior to the disaster.
  • Either the sale of the original property or the purchase or new construction of the replacement dwelling, must occur on or after April 1, 2021.
  • If the value of the replacement primary residence is greater than the value of the original primary residence, the taxable value of the replacement primary residence shall be calculated by adding the difference between the full cash value of the original primary residence and the full cash value of the replacement primary residence to the taxable value of the original primary residence.
  • Claims for this exclusion must be filed with the county assessor within three years of the date the replacement dwelling was purchased or the new construction of the replacement dwelling was completed.

No. Property owners will retain their previous factored base year value if the house is rebuilt in a like or similar manner, regardless of the actual cost of construction. However, any new square footage or extras, such as additional baths, will be added to the base year value at its full market value.

Yes. Temporary absence from a dwelling for repairs made necessary by a natural disaster will not result in the loss of your homeowner's exemption as long as you have not established permanent housing elsewhere.

As of May 6, 2021, the following 14 counties have enacted ordinances that allow a base year value transfer for a principal residence that was substantially damaged or destroyed by a Governor-proclaimed disaster:

  • Contra Costa
  • Glenn
  • Los Angeles
  • Modoc
  • Orange
  • San Diego
  • San Francisco
  • Santa Clara
  • Solano
  • Sonoma
  • Sutter
  • Ventura
  • Yolo
  • Yuba