Homestead and non-homestead property may be eligible for tax relief if a structure has sustained damage of at least 50 percent in value due to fire or natural disaster.
The program allows for a maximum of 12 months of property tax credit, which is for the full calendar months the property is not usable.
Property owners should notify their assessor when the disaster occurs and then apply for the credit at the time they begin reuse of the property.
What Property Owners Should Do:
Visually inspect your property and make notes of the damage. Document the damage with photographs whenever possible. If the assessor has not reassessed your property already and you believe your estimated market value has been reduced due
to the disaster or damage, contact your county assessor's office. Ask to have an assessor view the damage for the purpose of
property tax relief.
An assessor will view the property to estimate the damage resulting from the disaster. The assessor will determine how much
your property's estimated market value has been reduced as a result of the damage.
To make certain that all damage is noted, be sure that your property has been reassessed before you begin to reconstruct or
repair your property. Keep copies of any estimates you receive from contractors regarding the estimated costs to repair the
damage.
For additional information concerning these types of property tax relief, contact your county assessor's office.
How the Assessor Determines the Loss in Value:
The assessor determines the property's reassessed value and compares it to the estimated market value of the current
year's assessment before the disaster occurred. If the reassessed value is 50% or less than the estimated market value for a
structure, that structure may qualify for tax relief.
How Reassessed Value is Different from Insurance:
Value
Estimated market value is the value your assessor has estimated your property would sell for if offered for sale. This value is very
different from a property's insurance value, which typically reflects the cost of replacing a structure. Insurance values are often
significantly higher than the assessor's estimated market value.
For example: A property owner has an older garage. In establishing the garage's estimated market value, the assessor estimates
how much it adds to the overall value of the property if the property were sold. This may be a very minimal amount of $500 or
$1,000. However, the insurance value reflects the cost of replacing the garage with one that provides the same function as the
original. The replacement cost could easily from $5,000 to $10,000 or more.
Assessors review a number of factors in order to determine how the benefit is applicable to your property. Be sure to retain any
applicable documents.
For additional information concerning these types of property tax relief, contact your assessor.