No Property Tax Reassessment Due to Covid

Div. Three of the California Fourth District Court of Appeal held that the owner of an Orange County mall was properly denied reassessment of its property taxes due to sharp declines in valuation of the real estate following the COVID-19 pandemic under a California law providing for such relief in the event of a “major misfortune or calamity” that causes “damage or destruction.” [The Retail Property Trust v. Orange County Assessment (County of Orange), 2026 S.O.S. 1025.]

Under California Revenue and Tax Code Section Sec. 170(a)(1)  “damage includes a diminution in…value…as a result of restricted access to the property where that restricted access was caused by the major misfortune or calamity.”

The judge ruled “Neither governmental orders restricting access to property due to the COVID-19 virus nor the virus itself equate to physical harm to property—either direct or indirect—and plaintiff failed to establish eligibility for reassessment under section 170(a)(1)”