The city of Pasadena, California, could lower rebuilding expenses for some residents whose homes were damaged in the Eaton Fire.
Here's what to know
As Pasadena Now reported, a new ordinance headed to the Pasadena City Council would activate the construction-tax relief the city previously approved for certain Eaton Fire repairs. It covers qualifying work on eligible single-family homes and condominium units and would implement one part of the broader Aug. 17 relief package.
Pasadena charges a construction tax equal to 1.92% of the value assigned to structures included in a building, swimming pool, or similar permit. Removing that expense would lower repair bills for homeowners undertaking major rebuilding.
The proposal stems from the Eaton Fire, which started Jan. 7, 2025. In Pasadena, the fire damaged or destroyed 185 structures.
A homeowner would still have to pay the tax if they transfer the property to someone outside the family before the final building inspection is finished.
More background
Most of the affected Pasadena structures were residential. The document says the 185 damaged or destroyed properties were largely single-family homes and accessory structures.
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In a fact sheet, the City Attorney/City Prosecutor Department states, "The fee and tax waivers are intended to assist homeowners who were directly impacted by the fire in repairing their home and keeping their families in the community," according to Pasadena Now.
Pasadena would collect less revenue if it waives the 1.92% tax, but the fact sheet does not say how large that loss would be.
Only residential repair projects that meet the council's previously set eligibility standards would qualify for the exemption. The fact sheet does not spell out those standards.
What's being done?
Council members already approved a broader relief package on Aug. 17, and the proposed tax break is part of it. The package included certain fee waivers, reduced deposits, and construction-tax relief for qualifying repairs to Eaton Fire-damaged single-family properties and condominium units.
If adopted, the ordinance would formally carry out the tax-relief portion of that package. It would reduce permit-related rebuilding costs for qualifying homeowners, but require repayment of the tax if the property is sold to a non-family member before the final inspection.
The Planning and Community Development Department would administer the ordinance and oversee how eligible homeowners use the exemption for repair work during the rebuilding process.
Where can I learn more?
Pasadena's proposal is one piece of the recovery picture, as wildfire survivors across California and beyond wrestle with insurance costs, taxes, and housing pressure, examined in this related coverage.
• Eaton Fire survivors in California are pressing Sacramento for insurance fixes and $200,000 housing advances.
• In Talent, Oregon, residents built back greener after wildfire while replacing lost homes.
• Colorado lawmakers approved discounts tied to wildfire mitigation to lower homeowners' insurance costs.
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