Economic Development Recovery and Resiliency Playbook - Flipbook - Page 98
You may deduct a disaster loss sufered in California beginning on or afer January 1, 2014, and before January 1, 2024, if you
were not repaid for the damage to your property that was lost or damaged due to a sudden, unexpected, or unusual:
• Earthquake;
• Fire;
• Flood; or
• Similar event.
In addition, relief from interest and penalties may be provided to people who are unable to file their returns and pay taxes and
fees when due.
California State Board of Equalization Disaster Relief. Revenue and Taxation Code section 170 provides that if a disaster
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 (in accordance with
Proposition 13 of 1978) 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 aircraf, boats, and certain manufactured homes. It is not available to property that is not assessable,
such as state licensed manufactured homes or household furnishings.
Although section 170 provides one form of relief that may be available when a disaster strikes, you may be eligible for additional
relief depending on the nature of your property. Figure A-1 on page 91 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 provides the requirements of
each relief option.
State of California Franchise Tax Board. During disasters, including the COVID-19 pandemic, the Franchise Tax Board
provides relief to businesses. Although resources may difer depending on the disaster, during the COVID-19 pandemic, the
Franchise Tax Board is working with the Paycheck Protection Program and various other statewide programs to provide relief
to businesses and taxpayers.
Local and Regional Resources
Small Business Development Centers (SBDCs). A nationwide network of events and assistance opportunities, SBDCs help
small businesses grow in the U.S. Many events and discussions are co-hosted by universities and colleges, as well as private
sector partners, and funded by the U.S. Small Business Administration. These local centers provide no-cost business consulting
(including for disaster-specific concerns) and low-cost training resources. SBDCs can help small businesses navigate federal
disaster funding opportunities and ofer advice in navigating next steps.
Tax-Relief Assistance. The County Assessor in your county can provide tax-relief assistance if your property is eligible for
misfortune and calamity tax relief. To qualify, you must complete the appropriate paperwork denoting the damage to the
property within 12 months of the property being damaged or destroyed.
If your property has been substantially damaged or destroyed by a Governor-declared disaster, Proposition 50 (of 1986) provides
property tax relief to owners of real property, business equipment and fixtures, orchards or other agricultural groves.
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CALED | Economic Development Recovery and Resiliency Playbook
