As the protests continue across the nation, commercial and retail areas that were working to recover from COVID-19 are once again suffering another devastating blow as a result of the unprecedented destruction of their properties. The neighborhoods of Long Beach, Los Angeles, Beverly Hills, Santa Monica, Hollywood, and Fairfax District were hit particularly hard by damage and destruction.
Disaster Relief
In California, property owners are eligible for property tax relief, resulting from damage or destruction caused by a calamity, such as fire, earthquake, or flooding not caused by the owner. All California counties, including Los Angeles, have adopted measures to reappraise damaged/destroyed properties and assure rebuilt properties retain their prior assessed values.
To qualify for property tax relief, owners must file a claim with their respective county assessor within the time specified by the county ordinance or 12 months from the date of damage or destruction, whichever is later. The loss must be at least $10,000 of current market value to qualify for relief. The property will be reassessed according to its damaged state, and property taxes will be adjusted accordingly. Relief is available to owners of real property, business equipment, and fixtures. After an application is processed, the county assessor issues a notice of proposed new assessment, and a supplemental refund will be made based on the amount of reduction. Refunds will be prorated from the month the disaster occurred to the end of the fiscal year or completion of new construction, whichever is first. Application forms differ by county, and in some cases are available online. We highly recommend, if a property has suffered from any physical damage, that the taxpayer take photos of the damages and retain all receipts for costs incurred to remedy the damage.
Please feel free to contact us for additional assistance or questions.
TECHNICAL INFORMATION CONTACTS:
Steve Buck
Principal
Ryan
213.627.1719
steve.buck@ryan.com
Marc Hartley
Principal
Ryan
442.244.2426
marc.hartley@ryan.com
Tom Loban
Principal
Ryan
442.244.2432
tom.loban@ryan.com
Susan Orloff
Principal
Ryan
213.627.1719
susan.orloff@ryan.com
Mike Brennan
Director
Ryan
442.244.2414
mike.brennan@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.