Updates from the Office of LA County Assessor Jeff Prang
The devastating wildfires this past January damaged or destroyed nearly 20,000 properties across Los Angeles County. In addition to the personal hardships experienced by affected residents, the loss of taxable property was enormous and will have long-lasting effects on the revenues that fund our schools, cities, and essential local services.
Of the more than 23,000 properties flagged for review, approximately 18,000 have already had their assessed values reduced, along with the associated property taxes. That represents approximately $10 billion in assessed value reductions to date. In terms of property tax revenue, this means more than $100 million less for vital local public services that we all rely on.
At first glance, that kind of shortfall seems impossible to overcome. But here’s where the story takes a hopeful turn.
For the past decade, the Assessor’s Office has invested in a complete technological overhaul, digitizing 2.4 million property files and building a new cloud-based assessment system. That platform, known internally as the Assessor’s Modernization Project (or AMP), went live in August 2024 without the usual glitches or delays that often come with government technology projects. In fact, this year was the first time the new system was used to complete the annual “Assessment Roll” – and with great success. (The Assessment Roll is the annual inventory of all taxable property)
And it couldn’t have come at a better time.
Due to the flexibility of the AMP platform, the Assessor’s Office was able to quickly develop and launch a program designed to largely automate the processes needed to deliver tax relief through assessment reductions. That program saved staff more than 45,000 work hours that would have been needed to review and process the disaster relief delivered thus far. With the time saved, staff was able to work through long-standing backlogs and enroll an estimated $13 billion in assessed value that otherwise would have been delayed. Those gains effectively offset the revenue losses caused by the wildfires, bringing us back to almost exactly where we projected revenues would be before the fires, allowing us to maintain a positive Assessment Roll for the 15th consecutive year.
These modernization efforts have also sped up processing times for property tax relief claims for homeowners impacted by the Palisades and Eaton fires.
Typically, processing this level of relief would require 100 appraisers working nearly a full year. But thanks to the modernization of the technology platform, tools were developed that allowed the Office to complete most of this work in just 90 days. That efficiency meant faster property tax refunds to fire victims when they needed them the most.
With new online services, property owners now have the option of filing their Misfortune & Calamity property tax relief claims online. They can also check on the status of their claims using the property search tool.
The timing is nothing short of miraculous. While the wildfires drew new attention to the vulnerability of our communities, AMP technology has proven the value of planning, investment, and innovation. Together, they highlight an important truth: when government modernizes and prepares for the future, it can turn potential crisis into recovery.
Current property tax law provides several programs to help disaster-impacted property owners secure relief before, during, and after the rebuilding process. But given the unprecedented scope of damage from the January wildfires, the Los Angeles County Assessor’s Office sponsored new legislation to make these programs more accessible, flexible and effective.
Here is a snapshot of the three sponsored bills that have been signed into law:
- Senate Bill 663 (authored by Senators Ben Allen, Jerry McInerney, and Sasha Perez) – Extends the deadline to file a Misfortune & Calamity claim from 12 to 24 months, lengthens the time to rebuild and keep a property’s pre-fire tax base from 5 to 8 years, and allows property tax exemptions to continue for eligible properties.
- Assembly Bill 245 (authored by Assemblymember Mike Gipson) – Also extends the rebuilding window from 5 to 8 years and allows the Assessor’s Office to factor in wildfire-related damage or Decline in Value – such as destruction, depreciation, or removal – when determining 2025 property assessments for properties impacted by the 2025 Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley fires as of the 2025 lien date.
- Senate Bill 293 (authored by Senator Sasha Perez) – Extends the deadline to resolve ownership documentation issues – as a result of the fire – from 6 months to 3 years after receiving a reassessment notice from the Assessor. This is important as it was discovered that numerous homeowners in the disaster area had inherited property from parents but never recorded a change in ownership by filing an updated deed. SB 293 allows the Assessor to update records without penalties.
The Assessor also sponsored Assembly Bill 1253, authored by Assemblymember Nick Schultz (D-Burbank), which proposed to allow an assessor to treat a replacement structure as “substantially equivalent” to a damaged or destroyed one for assessment purposes if its size qualified it for expedited permit review under State or local orders related to the Palisades or Eaton fires. Unfortunately, the bill was held in the Assembly’s Appropriation Committee and did not proceed through the legislative process.
Losing a loved one is never easy, and the responsibilities that follow can sometimes feel overwhelming. One important step, if the person owned real estate, is to notify the Los Angeles County Assessor’s Office. State law requires that a Change in Ownership Statement – Death of Real Property Owner be filed within 150 days of the date of death. This reporting requirement applies even if title to a property was held by a trust. 
Why is this important? In California, the death of a property owner is considered a change in ownership, with some exceptions. That means the property may be reassessed as of the date of death, the assessed value could change, and the property taxes could increase. These changes can occur even if a property is held in trust and title has not been changed following the owner’s death.
Filing the Change in Ownership Statement in a timely manner helps avoid potential problems down the road. For example, the property’s mailing address will remain the same until the Assessor’s Office is notified, which can cause delays or missed notices. If the form isn’t filed on time, there may be penalties. In addition, if a reassessment is required, the property will be appraised at its market value as of the date of death, and corrected tax bills could be issued for each year thereafter. In cases where a property owner’s death is not reported and discovered years later, up to eight years of back tax bills can be issued and often become due all at once.
To make this process easier, the Assessor’s Office has created a special packet, “Assessor’s Informational Packet – Death of a Property Owner”, which explains the steps you need to take and includes all the necessary forms. For more information, please visit: assessor.lacounty.gov/homeowners/death-of-an-owner
Again, it is important to note that the filing of a Change in Ownership Statement Death of Real Property Owner form with the Assessor’s Office only serves to notify our office that a change in ownership of the property has occurred – it does not prevent a reassessment of the property based on that change. To request that a transfer be excluded from reassessment, additional reassessment exclusion claim forms may be required. Please stay tuned for our next newsletter where we will explore the Proposition 19 Parent-Child and Grandparent-Grandchild Transfer Reassessment Exclusion. For more information, please visit: https://assessor.lacounty.gov/homeowners/proposition-19
