My home burned down. Why does my Notice of Correction have a structural improvement value on it?
The reason you have a structural improvement value is because it’s a hybrid value that is prorated for before and after the October fire calamity. Property assessments and taxes are for a fiscal year. The fiscal year started on July 1, 2017 and ends on June 30, 2018.
The hybrid value is calculated in two parts:
The prorated “pre-calamity” period is from July 1, 2017 to September 30, 2017. It must be assessed and taxed at full value for both the land and structures that existed before the fire.
For a completely damaged structure, the prorated “post calamity” period is from October 1, 2017 to June 30, 2018 and the assessment is for the land only. For a completely damaged structure, the land value was adjusted by a percentage that reflects the cost-to-cure the land of the toxic remnants of the structure and the cost of site improvements required for rebuilding.
Parts 1 and 2 are combined to create the prorated values shown on the Notice of Correction and the new tax bill.
These hybrid values are only used for the prorated 2017-18 assessment and new tax bill. If no change in ownership occurs or no new construction is started on the property by January 1, 2018, the assessed value for 2018-19 will be land only.
Please see the How Your New Assessment is Calculated for more information.