Nevada County Municipal Code Ch. 5 Reassessment of Damaged or Destroyed Property or Possessory Interest

Every assesses of any taxable property, or any person liable for the taxes thereon, whose property was damaged or destroyed without their fault, may apply for reassessment of that property in accordance with the provisions of Cal. Rev. & Tax Code §§ 170—198.1. The Assessor may initiate the reassessment where the Assessor determines that within the preceding twelve (12) months taxable property located in the county was damaged or destroyed.

To be eligible for reassessment the damage or destruction to the property must be at least five thousand dollars ($5,000.00) and must have been caused by any of the following:

A. A major misfortune or calamity, in an area or region subsequently proclaimed by the Governor to be in a state of disaster, if such property was damaged or destroyed by the major misfortune or calamity which caused the Governor to proclaim the area or region to be in a state of disaster. As used in this paragraph "damage" includes a diminution in the value of property as a result of restricted access to the property where such restricted access was caused by the major misfortune or calamity.

B. A misfortune or calamity.

C. A misfortune or calamity which, with respect to a possessory interest in land owned by the State or Federal government, has caused the permit or other right to enter upon the land to be suspended or restricted. As used in this paragraph, "misfortune or calamity" includes a drought condition such as existed in this State in 1976 and 1977. Such suspension or restriction shall be considered to be damage to property for purposes of this Chapter.

(Ord. 2526. (06/13/2023))

The application for reassessment may be filed within six (6) months of such misfortune or calamity by delivering to the Assessor a written application requesting reassessment showing the condition and value, if any, of the property immediately after the damage or destruction, and the dollar amount of the damage. The application shall be executed under penalty of perjury, or if executed outside the State of California, verified by affidavit.

(Ord. 2526. (06/13/2023))

A. Upon receiving a proper application, the Assessor shall appraise the property and determine separately the full cash value of land, improvements and personality immediately before and after the damage or destruction. If the sum of the full cash values of the land, improvements and personality before the damage or destruction exceeds the sum of the values after the damage by five thousand dollars ($5,000.00) or more, the Assessor shall also separately determine the percentage reductions in value of land, improvements and personality due to the damage or destruction. The Assessor, in that event, shall reduce the values appearing on the assessment roll by the percentages of damage or destruction computed pursuant to this Section.

B. The Assessor shall notify the applicant in writing of the amount of the proposed reassessment. The notice shall state that the applicant may appeal the proposed reassessment to the Nevada County Assessment Appeals Board within fourteen (14) days of the date of mailing the notice.

(Ord. 2526. (06/13/2023))

An appeal of the proposed reassessment to the Nevada County Assessment Appeals Board may be requested within fourteen (14) days of the mailing of the notice of reassessment. If an appeal is requested within the fourteen (14)-day period, the Board shall hear and decide the matter as if the proposed reassessment had been entered on the roll as an assessment made outside the regular assessment period. The decision of the Board regarding the damaged value of the property shall be final, provided that a decision of the Nevada County Assessment Appeals Board regarding any reassessment made pursuant to this Section shall create no presumption as regards the value of the affected property subsequent to the date of the damage.

Those reassessed values resulting from reductions in full cash value of amounts, as determined above, shall be forwarded to the Auditor-Controller by the Assessor or the Clerk of the Nevada County Assessment Appeals Board, as the case may be. The Auditor-Controller shall enter the reassessed values on the roll. After being entered on the roll, such reassessed values shall not be subject to review, except by a court of competent jurisdiction.

(Ord. 2526. (06/13/2023))

When an assessment reduction is entered on the assessment roll as provided in this Chapter, the taxes due on the property shall be adjusted as follows; provided, however, that the amount of the reduction shall not exceed the actual loss:

The tax rate fixed for property on the roll on which the property so reassessed appeared at the time of the misfortune or calamity, shall be applied to the amount of the reassessment as determined in accordance with this Chapter and the assessee shall be liable for: (1) a prorated portion of the taxes that would have been due on the property for the current fiscal year had the misfortune or calamity not occurred, such proration to be determined on the basis of the number of months in the current fiscal year prior to the misfortune or calamity; plus, (2) a proration of the tax due on the property as reassessed in its damaged or destroyed condition, such proration to be determined on the basis of the number of months in the fiscal year after the damage or destruction, including the month in which the damage was incurred. If the damage or destruction occurred after March 1 and before the beginning of the next fiscal year, the reassessment shall be utilized to determine the tax liability for the next fiscal year provided, however, if the property is fully restored during the next fiscal year, taxes due for that year shall be prorated based on the number of months in the year before and after the completion of restoration.

(Ord. 2526. (06/13/2023))

Any tax paid in excess of the total tax due shall be refunded to the taxpayer pursuant to Cal. Rev. & Tax Code §§ 5096—5107 as an erroneously collected tax or by order of the Board of Supervisors without the necessity of a claim being filed pursuant to Cal. Rev. & Tax Code.

(Ord. 2526. (06/13/2023))

The assessed value of the property in its damaged condition, as determined pursuant to this Chapter, compounded annually by the inflation factor specified in Subdivision (a) of Section 51 of the California Revenue and Taxation Code, shall be the taxable value of the property until it is restored, repaired, reconstructed or other provisions of the law require the establishment of a new base year value.

If partial reconstruction, restoration, or repair has occurred on any subsequent lien date, the taxable value shall be increased by an amount determined by multiplying the difference between its factored base year value immediately before the calamity and its assessed value in its damaged condition by the percentage of the repair, reconstruction, or restoration completed on that lien date.

(Ord. 2526. (06/13/2023))

If no such application has been made and the Assessor determines that within the preceding six (6) months a property has suffered damage caused by misfortune or calamity, which may qualify the property owner for relief under an ordinance adopted under this Section, the Assessor shall provide the last known owner of the property with an application for reassessment. The property owner shall file the completed application within thirty (30) days of notification by the Assessor but in no case more than six (6) months after the occurrence of said damage. Upon receipt of a properly completed, timely filed application, the property shall be reassessed in the same manner as required in Section 5.05.030 above.

(Ord. 2526. (06/13/2023))

In lieu of Section 5.05.080 above, if no such application is made and the Assessor determines that within the preceding six (6) months a property has suffered damage caused by misfortune or calamity, which may qualify the property owner for relief under an ordinance adopted under this Section, the Assessor may, with the approval of the Board of Supervisors, reassess the property as provided in Section 5.05.030 and notify the last known owner of the property of the reassessment.

(Ord. 2526. (06/13/2023))

When the property is fully repaired, restored or reconstructed, the Assessor shall make an additional assessment or assessments in accordance with this Section upon completion of the repair, restoration or reconstruction.

A. If the completion of the repair, restoration, or reconstruction occurs on or after March 1, but on or before May 31, then there shall be two (2) additional assessments. The first additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll. The second additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value to be enrolled on the roll being prepared.

B. If the completion of the repair, restoration, or reconstruction occurs on or after June 1, but before the succeeding March 1, then the additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll.

C. On the lien date following completion of the repair, restoration, or reconstruction, the Assessor shall enroll the new taxable value of the property as of that lien date.

D. For purposes of this subdivision, "new taxable value" shall mean the lesser of the property's: (1) Full cash value; or (2) factored base year value or its factored base year value as adjusted pursuant to subdivision (c) of Cal. Rev. & Tax Code § 70.

(Ord. 2526. (06/13/2023))

The Assessor may apply Cal. Rev. & Tax Code §§ 75—75.80 in implementing this Chapter, to the extent that chapter is consistent with this Chapter.

(Ord. 2526. (06/13/2023))