How is the reduction calculated?
It’s a two-step process. 1. Prorate the amount of the damage as a percentage of the Assessment: The amount of property tax relief granted is based upon the percentage of damage the property suffers to its current value as compared to the property’s Proposition 13 assessed value. It is not necessarily a dollar for dollar reduction. Once the percentage of damage is established, the Assessor then reduces the property’s assessed value by that percentage. 2. Prorate the duration of the damage as a percentage of a tax year: The reduction in property tax is effective as of the date the flooding occurred and remains in force until repairs are complete. When the repairs are finished, the property’s Proposition 13 assessed value will be reinstated. Note: It is important to understand that this program provides only small amounts of property tax relief and you should not expect a large tax reduction. In most cases the savings will be significantly less than 1% of the damage amount due to Proposit
