I’ll pay our home’s property tax next week, just before the Jan. 31 deadline. It’s an annual tax ritual followed, albeit with differing deadlines, by millions of real estate owners across the United States every year.
Some homeowners, however, are more frustrated than usual this year with their current property tax bills. Their homes were destroyed or seriously damaged by a major natural disaster.
That’s the case for many property owners in Western North Carolina that were in Hurricane Helene’s path last year. They’re looking at a big bill for a property that’s now, at best, a shell of itself or, in many cases, totally gone.
So they’ve taken to social media to complain, commiserate with other homeowners, and get some tax guidance.
Local investigation says yes and no: As we all know, tax advice on the internet shouldn’t be taken as gospel. But WRAL News in Raleigh, North Carolina, saw the conversations and set out to find some more reliable answers.
As is the case in when it comes to tax questions, the answer as to whether owners must pay property tax on disaster-destroyed homes is yes and no, according to WRAL Politifact reporter Paul Specht.
The yes, they must pay the tax bill, is because it was issued based on the assessed value of the property as of Jan. 1, 2024. So, according to the tax officials, people with properties damaged by Helene won't see that property destruction reflected in their 2024 tax bills.
The no response applies to tax assessments done after Hurricane Helene hit. In those cases, the owners obviously will see low or no tax bills.
Unfortunately, that doesn’t do the storm victims much good right now.
Preparing for post-disaster taxes: This property tax question is likely to come up later this year as Los Angeles area residents continue their long recovery from the deadly fires that this month ravaged Southern California.
It will be asked again when tornadoes rake the United States this spring, and when hurricane season starts in June.
That’s why it’s a good idea to be prepared not only for these disasters, but also the tax implications.
The Internal Revenue Service typically provides some relief, mostly by delaying federal tax filing and often payment deadlines.
Your state or local tax jurisdictions’ responses, such as your county or parish that’s usually in charge of property tax collections, might not be a satisfying, as many North Carolina property owners have just discovered post-Helene.
Here in Texas, for example, the tax code allows homeowners, other certain residential property owners, and small businesses whose property is located in a disaster area or emergency area and has been damaged as a direct result of the disaster or emergency to pay their taxes in four installments.
At least knowing the tax law where you live and any possible remedies beforehand is better than getting another surprise while you’re trying to recover from one of the worst circumstances of your life.
You also might want to alert your local tax officials of any disaster damages that could affect your property’s value, especially if it’s not part of wider catastrophe.
You also might find these items of interest:
- Comparing property taxes across the United States
- Property tax concerns for real estate owners and the collecting local governments
- Protest, but pay, your property tax bill or risk losing your house…and more money
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