Rebuilding After a Disaster

If you rebuild the same size home (or one that’s substantially equivalent):
Revenue & Taxation Code Section 170(h)

You may be able to keep your previous tax base under the Disaster Relief. This means your assessed value (used to calculate property taxes) will temporarily go down while you rebuild and then return to what it was before, plus a small annual increase of up to 2%, as allowed under Proposition 13.

If you rebuild a larger home or change how the property is used:
Revenue & Taxation Code Section 70(c)

The extra square footage or new use will be considered new construction and will be assessed at current market value. This could increase your property taxes.

What about the 120% rule (Revenue & Taxation Code Section 70.5)?
Revenue & Taxation Code Section 70.5

There’s often confusion around a rule that allows property owners to rebuild up to 120% of the full cash value of their previous home without reassessment. This doesn’t mean 120% bigger, it refers to the value of the home. If the new structure’s value is within 120% of the property’s value prior to damage, reassessment may be excluded. However, due to rising construction costs and increasing property values, many property owners may not qualify to retain their prior tax base under this section.

Need help?

Every rebuilding situation is different. If you’re unsure how your plans might impact your assessment, we encourage you to contact the Ventura County Assessor’s Office directly. We’re here to help you navigate this process and understand your options.

Contact us at (805) 654-2181.