California's property tax laws allow the Assessor to adjust assessed values after destruction of real or personal property caused by a calamity or misfortune.
The property must have suffered more than $10,000 worth of damage and the owner must file an Application for Reassessment of Property Damaged by Misfortune or Calamity form with the Assessor within 12 months of the date of the calamity. For governor declared disasters, the assessor may initiate calamity damaged reassessments without requiring an Application for Reassessment of Property Damaged by a Misfortune or Calamity form.
Calamities do not include damage that occurs over time such as termite damage, gradual earth movements, or vineyard diseases such as phylloxera.
There are slightly different rules that depending on whether you choose to rebuild or purchase a new replacement residence and transfer your base year value. Contact the Assessor’s Office for information about eligibility.
[Revenue & Taxation Code section 170]