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INFORMATION FOR THE RECONSTRUCTION OF PROPERTY AFTER A DISASTER
New construction is generally reassessed under revenue and taxation code; however, under §70(c), the timely reconstruction of damaged or destroyed real property, where the property after reconstruction is equivalent to the property prior to the damage or destruction, is excluded from reassessment. Any reconstruction of real property, or portion thereof, that is not equivalent to the damage or destroyed property, shall be deemed to be new construction and the portion that exceeds the equivalent will receive a new base year value determination.
In addition, for properties that were substantially damaged or destroyed (more than 50 percent of the improvements' full cash value immediately prior to the disaster), the base year value of the property prior to the disaster can be applied to property reconstructed on the same site within 5 years of the date of the disaster, if the reconstructed property is comparable (similar in size, utility, and function) to the substantially damaged or destroyed property (§70.5). The following provisions apply to the base year value determination:
In summary, for property owners that reconstruct their residence within the same footprint as the original residence, the assessed value after construction will return to the Prop 13 trended base year value.
Please contact our office at (530) 621-5719 if you have any property tax questions about the reconstruction of damaged or destroyed improvements.
INFORMATION FOR TRANSFERRING A BASE YEAR VALUE TO A REPLACEMENT PROPERTY
For property owners that have been impacted by a natural disaster or wildfire that choose to transfer their base year values to a replacement property, the following options are available:
* Partial relief is available if the market value of the replacement property exceeds the value test.
** Senate Bill 303, effective 10/5/21, amended R&T §69 (Prop 50 base year value transfers) to extend the time to purchase or newly construct a replacement residence to 7 years if the last day of the deadline was between 3/4/20 and 3/4/22 or if the disaster occurred between 3/4/20 and 3/4/22, which is applicable to the Caldor Fire (August 2021).
Additional Provisions of Proposition 50:
Additional provisions of Proposition 19:
For more information or questions on transferring a base year value to a replacement property, please call our office at (530) 621-5719.