Governor Newsom’s January 16, 2025, executive order provides two key property tax relief measures for those affected by recent firestorms:
1. Automatic Property Tax Payment Extension
Property owners in designated areas receive an automatic extension for their April 10, 2025, and December 10, 2025, property tax payments. These are now due April 10, 2026, with no penalties or interest.
2. Disaster Reassessment for Damaged Properties
If your property was damaged or destroyed, the disaster reassessment program can reduce your property tax assessment, lowering future tax bills. While delaying payments to April 2026 is helpful, securing a lower assessment now will provide even greater relief.
Additionally, property owners may request a further suspension of penalties and interest (for up to four years) by submitting a Penalty Cancellation Request Form to the Los Angeles County Treasurer and Tax Collector.
Automatic Extension in Designated ZIP Codes
The executive order applies automatically to property owners in 15 Los Angeles County ZIP codes:
90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, and 93536.
No application is required—property tax payment deadlines are extended to April 10, 2026, with no penalties or interest accruing during this period.
Potential Financial Challenges
The April 2026 deadline may create financial strain, as property owners will face three tax installments at once, coinciding with:
- Federal and state tax returns
- First-quarter estimated tax payments
This cash flow burden should be carefully considered before delaying payments.
For business and rental property owners, this extension could impact 2025 tax deductions.
- Consider whether to pay 2024 property taxes in December 2025 or delay until April 2026.
- For individuals, the 2025 SALT cap may make property tax payments non-deductible.
- With potential TCJA negotiations, the SALT limit could change, making 2026 the best bet for now.
The Importance of Disaster Reassessment
While the payment extension offers breathing room, disaster reassessment provides immediate and long-term tax relief for those with damaged properties.
Administered by the LA County Assessor’s Office, this program temporarily reduces property taxes based on the current condition of the property—lowering assessments until repairs are complete.
How to Apply
To qualify, property owners must file Form ADS-820 within 12 months of the damage. The application should include:
- Photos of damage
- Insurance claim reports (if available)
- Repair estimates
- Official damage assessment reports
Once submitted, the Assessor’s Office will review the documentation and adjust the property tax assessment accordingly.
What Qualifies for Reassessment?
Taxpayers may qualify for reassessment even if their property was not structurally burned. This includes:
- Smoke damage to buildings
- Destroyed landscaping
- Damage to access roads or utilities
- Infrastructure impacts (e.g., drainage systems)
Even properties that appear superficially intact may qualify if significant damage occurred.
Real-Life Example
One homeowner’s house appeared undamaged from the outside, but asbestos contamination left it unlivable for 11 months. Through disaster reassessment, the county reduced the home’s assessed value to zero until inspectors deemed it habitable again. The process was simple, and the tax relief provided much-needed financial support during the recovery period.
Final Thoughts
Fire-affected property owners should take advantage of both the tax payment extension and disaster reassessment. While delaying payments to April 2026 can provide short-term relief, securing a reassessment now can reduce future tax obligations—maximizing savings and easing financial strain.