Destroyed Property is any real or personal property improvement that has lost value due to the impact of a natural disaster or voluntary destruction. Property may qualify for eligibility if it meets one of the following criteria:
- Any real or personal property that has been placed on the assessment roll as of January 1 of the year in which the property was destroyed, in whole or in part.
- Any real or personal property that has been placed on the assessment roll as of January 1 of the year in which an area has been declared a disaster area by the governor or the county legislative authority and the property has been reduced in value by more than 20% as a result of the natural disaster.
These properties may be eligible for a reduction in their assessed value and/or abatement of property taxes when the destruction results in a reduction of the true and fair market value of the property. Taxes levied for collection in the year the assessed value has been reduced will be abated in whole or in part. The amount of abatement will be determined by calculating the taxes on the amount deducted from the assessed value for the number of days that remained in the calendar year after the date of destruction or reduction in value of the property. If abated taxes have already been paid, the amount paid will be refunded.
Abatement of taxes in the year of destruction does not apply to property damaged or destroyed voluntarily. The value of property damaged or destroyed voluntarily is removed from the assessment roll for the current assessment year for taxes payable in the next assessment year.
Under legislation passed in 2021, taxpayers may apply for a three year exemption for physical improvement value added to single family dwellings as a result of property destroyed by a qualifying natural disaster. The reduction in value must exceed 20% of the assessed value and must have occurred on or after August 31, 2020. The amount of the exemption cannot exceed the amount of the destroyed property.
Applications must be submitted to the county assessor prior to starting construction on new improvements. No applications can be approved after June 30, 2026. Contact your local county assessor for more information or see the links listed under Forms and Publications.