Los Angeles County Assessor Jeff Prang joined the Palisades Recovery Coalition community to
address property tax questions for fire-impacted residents. The session covered reassessment
procedures, available relief options, recent and pending legislation, and guidance for rebuilding. Prang
was accompanied by retired Director Brian Donnelly and field deputy Ian May.
Overview of Fire Impact
• Approximately 24,000 parcels fell within the governor’s declared fire zone.
• About 19,000 parcels (77%) were impacted; misfortune and calamity relief claims were applied.
• Total assessed property value lost exceeded $10.5 billion.
• Roughly 11,000 properties were completely destroyed; 2,000 sustained damage without total loss.
• In the Palisades specifically, 7,700 disaster relief claims were filed, representing ~92% of parcels in
the burn area.
• Approximately 2,600 claims were applied proactively by the Assessor’s office even when owners
had not filed.
Property Tax Relief: Three Rebuilding Paths
1. Stay and Rebuild
Property owners who rebuild to substantial equivalence will have their pre-fire Prop 13 assessed value
fully restored. Assessment is phased in as construction progresses each January 1st (the lien date), not
upon certificate of occupancy. Any square footage or improvements beyond substantial equivalence
will be assessed separately at market value and blended with the existing Prop 13 base.
2. Relocate Within LA County — Proposition 50
Allows transfer of the pre-fire tax base to a new replacement property within LA County within five
years. The damaged or destroyed property does not need to be sold first.
3. Sell and Relocate Anywhere in California — Proposition 19
Allows fire victims to sell their damaged property and transfer their tax base to a replacement home
anywhere in California. The sale and purchase must occur within two years. The first million dollars of
transferred value is protected; value exceeding that is assessed at market rate. The damaged property
must have been the primary residence.
Additional Option: Proposition 171
Permits transfer of the tax base to a home in one of 14 participating California counties within three
years, while retaining the damaged property, provided it was the primary residence.
Substantial Equivalence and the 110% Rule
Substantial equivalence is defined as roughly the same size and utility as the structure that was
destroyed. Square footage is the primary measure; footprint location on the lot is not a factor. Board of
Equalization guidance and longstanding assessor practice have placed the effective ceiling at
approximately 105%.
Assessor Prang acknowledged that the governor’s emergency proclamation allows construction up to
110% of original square footage for expedited permitting, but noted that this building-code standard
technically exceeds the assessment standard for substantial equivalence. He issued an administrative
directive accepting 110% as substantial equivalence and is sponsoring legislation (Senate Bill 1352) to
codify this alignment formally.
Adding features beyond substantial equivalence (additional bathrooms, ADUs, square footage) will be
assessed at market value and added to the existing Prop 13 base year rather than triggering a full
reassessment.
Legislation — Recent and Pending
AB 245 (Gibson): Extended the rebuilding period for protecting the pre-fire Prop 13 base and
allowed 2025 decline-in-value applications to be applied retroactively.
SB 293 (Perez): Extended to three years the window for heirs to correct ownership records without
triggering up to eight years of back taxes — critical for properties held informally across
generations.
SB (Allen): Extended exemptions for disabled veterans, religious institutions, and nonprofits through
the rebuilding period so they are not taxed while unable to use their properties.
SB 1352 (Valadares — current session): Would align the building-code 110% square footage
standard with the assessment standard, eliminating the risk of supplemental tax bills for fire victims
who take advantage of the governor’s building allowance. The prior Assembly version was killed in
Appropriations; Prang is actively seeking legislative support.
Decline-in-Value Process
Property owners who believe their assessed value is higher than current market value may file a
Decline in Value application. The filing window opens July 2nd and closes November 30th each year.
Applications must be refiled annually for each tax year in dispute. If the Assessor’s determination is still
contested, owners may file a formal Assessment Appeal with the quasi-judicial Assessment Appeals
Board.
The Assessor acknowledged that limited comparable sales data in the immediate aftermath of the fire
made it difficult to validate some decline requests in the first year. Owners are encouraged to submit
any supporting evidence, including appraisals, comparable sale data, and documentation of damage
costs.
Key Action Items for Property Owners
• Update your mailing address with the Assessor’s office at assessor.lacounty.gov to ensure refunds
and notices are delivered.
• File a Misfortune and Calamity Relief Claim if you have not already done so (available online).
• Check the status of your calamity claim online via the Assessor’s eService portal.
• If your property’s square footage on record differs from pre-fire reality, submit a Property Data
Change Request Form with supporting documentation (photos, appraisals, insurance records).
• File a Decline in Value application between July 2nd and November 30th each year you believe
market value is below your assessed value.
• Sign up for the free Homeowner Alert service to receive email notification within 48 hours of any
deed activity, protecting against title fraud.
• If you believe your refund was not received, contact the Auditor-Controller at (213) 974-0390.
• Contact your state legislators to support Senate Bill 1352, which would protect fire survivors from
supplemental assessments for rebuilding up to 110% of original square footage.
Additional Notes
• The 1% base property tax rate is set by Proposition 13 and cannot be modified by the Assessor.
• Land values were reduced by the Assessor across fire-affected areas to reflect economic and
geological damage.
• Mobile home owners have distinct rules; a separate Zoom briefing can be arranged through the
Assessor’s office.
• Prefabricated homes on permanent foundations are assessed similarly to traditional homes but are
noted distinctly in records.
• The Assessor’s office will arrange recurring office hours at PRC headquarters to address individual
questions.
• Owners under construction at the time of the fire should contact the office for case-by-case
guidance on how pre-existing construction is treated.
Prepared by the Palisades Recovery Coalition | palirecovery.org | info@palirecovery.org
This document summarizes remarks made at the March 1, 2025 community event and is provided for informational
purposes only. It does not constitute legal or tax advice.