Calculation

Calculation for property tax disaster relief involves recalculating the total net taxes using the pre-disaster value and the post-disaster (reassessed) value. The process of calculating the property tax relief for a parcel is:

1. Calculate the full net tax on the parcel using the market value established on January 2 of the year of the damage.
   • This value should be used even when calculating an abatement for taxes payable in the current year.
2. Calculate the net tax on the parcel using the reassessed market value for qualified buildings.
   • If a building qualified for either type of relief, use the reassessed value to do the calculation.
   • If the building did not qualify for relief, use the January 2 value.
3. Subtract the net tax of step 2 from the net tax of step 1.

If the property is located in a declared disaster area, the difference between the two net taxes is the relief amount.

If the property is not located in a declared disaster area, any property tax relief is prorated based on the number of full months that the structure is unusable. This adds a fourth step:

4. Multiply the difference in the net taxes (step 3) by the number of full months that the property was not usable, divided by 12.

Find Disaster Credit and Abatement examples here.