Orange County homeowners know that there are plenty of areas that are rural and look nothing at all like the common image of California that’s portrayed on television of warm sandy beaches. In recent years, we have seen an influx of fires threatening homes along these rural areas, so this protection is more important than ever.
In these areas, California homeowners will be required to pay a fire protection fee of $450 per year, along with a $150 fire protection fee for each additional structure like out buildings, garages or sheds that may reside on a property.
Are Fire Protection Fees Tax Deductible?
Although fire protection fees may be tax deductible, for owners of businesses, those same property taxes are not tax deductible for owners of residential homes or properties in rural areas around Orange County or California as a whole.
It doesn’t matter if a homeowner in California owns what they consider to be vacant land, as long as that land has a structure on it, the homeowner must pay the fire protection fee because, the state considers that structure as an additional fire risk.
IRS Thoughts On Fire Protection Fees
Fire protection fees are not tax deductible in California because, they are only imposed on a specific home or property to provide the homeowner or property owner with a service that will benefit the community.
The IRS also considers fire protection fees not tax deductible especially if the service was provided for a property owner who owns a home or land in an area where the state provides fire protection services, especially if the home or property doesn’t immediately fall within the states jurisdiction.
The $150 fire protection fee is imposed on homes and properties regardless of their value, size or shape and although some California homeowners might not be excited about paying this tax, it’s becoming more commonplace throughout the state as almost every city in California is turning to new taxes like fire protection taxes to cover budget shortfalls.
To learn more about the latest taxes in California that homeowners face or to view the latest Orange County homes for sale, contact Fred Sed & Associates today at (949) 272-0125.