Misfortune and Calamity Claims Permanent? Time Will Tell

This update highlights recent developments affecting commercial property taxation in California. It reflects analysis prepared by an APTC member firm based on conditions at the time of publication.

When land and/or improvements are damaged or destroyed by a calamity, such as fire or flood, an assessee may file an Application for Reassessment: Property Damaged or Destroyed by Misfortune or Calamity (commonly referred to as an “M&C claim”). The form to file is ADS-820, and it must be filed within 12 months from the date the property was damaged or destroyed.

Historically, M&Cs have been viewed as temporary—a temporary reduction of value while the owner repairs the property (land and/or improvements). However, recent discussions with assessor representatives have supported the notion that a property’s M&C status may be permanent under “special circumstances” and with the right documentation and evidence.

For example, landslide damage could be so severe that the land is not remediable, or the cost to repair is so significant that the land is effectively irreparable. For victims of the January 2025 Southern California wildfires, it may be worth reviewing documentation and evidence to determine whether a situation could qualify for a permanent M&C designation.

Bree Burdick and Cris O’Neall
Greenberg Traurig, LLP
Member Firm, American Property Tax Counsel

For guidance on how these developments may apply to your property or portfolio, please contact the APTC representative listed above.