Pasadena Moves to Waive 1.92% Construction Tax for Eaton Fire Rebuilds; Homeowners Who Sell Before Final Inspection Must Pay
Pasadena is a city in Los Angeles County, California. Pasadena is moving to wipe out a construction tax that has been weighing on residents rebuilding after the Eaton Fire.
A new ordinance headed to the Pasadena City Council would activate construction-tax relief the city had previously approved for certain Eaton Fire repairs, Pasadena Now reported. The measure covers qualifying work on eligible single-family homes and condominium units and would implement one part of the broader relief package the council approved on Aug. 17.
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 charge would lower permit-related costs for homeowners undertaking major rebuilding — a meaningful saving on a full home reconstruction.
The proposal stems from the Eaton Fire, which started on Jan. 7, 2025, and damaged or destroyed 185 structures in Pasadena, most of them residential. The document says the affected properties were largely single-family homes and accessory structures.
There is one important condition attached: a homeowner would still have to pay the tax if the property is transferred to someone outside the family before the final building inspection is completed. In other words, the relief is reserved for people who genuinely rebuild and stay, not for flippers.
In a fact sheet, the City Attorney/City Prosecutor Department said the fee and tax waivers are intended to help homeowners directly impacted by the fire repair their homes and keep their families in the community. The broader Aug. 17 package also included certain fee waivers and reduced deposits for qualifying repairs.
If adopted, the ordinance would be administered by the Planning and Community Development Department, which would oversee how eligible homeowners use the exemption during the rebuilding process. Only residential repair projects meeting the council's previously set eligibility standards would qualify; the fact sheet does not detail those standards.
For many Chinese-American families in Pasadena, rebuilding after the Eaton Fire has been slowed by insurance disputes, permit delays, and rising construction costs. The tax waiver, if approved, would remove at least one line item from the bill. Homeowners who think they may qualify should check the city's published eligibility criteria and consult the Planning and Community Development Department before applying.
Source: Pasadena Now, via thecooldown.com; City of Pasadena City Attorney fact sheet.
Published by GSM · USA (original Chinese edition)
Photo: 帕萨迪纳市政厅外景，RBerteig 摄，CC BY 2.0（Wikimedia Commons）
