Rebuilding Your Damaged or Destroyed Property

After your property is rebuilt, you will retain your previous factored base year value on the property if it is rebuilt in a like or similar manner (substantially equivalent) as determined by the Assessor, regardless of the cost of construction. The County Assessor will reinstate a portion of the factored base year value if construction is in progress as of each January 1 lien date until the construction is complete. Once complete the Assessor will issue a Supplemental Assessment to fully restore the factored base year value.

• Rebuild from any Disaster or Calamity
• Rebuild from Governor Declared Disaster

Rebuild from any Disaster or Calamity (including Governor-proclaimed disaster)

Form: No Form Required

Once you have received property tax relief under California law (R&TC section 170) as described above, if you timely rebuild your damaged or destroyed real property on the same site such that it is in a like or similar matter (substantially equivalent) to the property prior to the damage or destruction, its factored base year value will be reinstated, as provided for in California law [R&TC section 170(h)]. You will not have to pay an increase of property taxes based on the market value or cost of your rebuilt property. However, any rebuilt property that exceeds the definition of substantially equivalent, as determined by the Assessor is considered new construction where that portion will be assessed at market value and added to the existing factored base year value pursuant to California law [R&TC section 70(c)].

Rebuild from Governor-proclaimed disaster (Applicable when the Rebuild is not Substantially Equivalent as Determined by the Assessor)

Form: No form required

Pursuant to California law (R&TC section 70.5), real property that is rebuilt on the same site after being substantially damaged or destroyed by a Governor-proclaimed disaster may have its factored base year value reinstated if the reconstructed property’s market value is comparable to the damaged property in size, utility, and function.

“Substantially damaged or destroyed” means that the improvement must sustain physical damage amounting to more than 50 percent of the improvement’s (structure) full cash value immediately prior to the disaster as determined by the Assessor. “Comparable in size and utility” means that the reconstructed property may not exceed 120 percent of the market value of the property prior to its damage or destruction. If it exceeds 120 percent of the market value, the excess market value is added to the adjusted base year value, resulting in a new base year value. The property must be rebuilt within five years of the disaster.