City Council to Review Ordinance That Would Exempt Qualifying Eaton Fire Repairs From Construction Tax

Pasadena homeowners repairing qualifying Eaton Fire-damaged residences would be exempt from the city’s construction tax under a proposed ordinance scheduled for City Council consideration.

The exemption would implement part of a relief package the council approved Aug. 17, which included waiving specified fees, reducing deposits and waiving construction taxes for qualifying repairs to single-family properties and condominium units.

The proposed ordinance would require owners to pay the construction tax if they sell their property to a non-family member before the final building inspection.

“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 a fact sheet from the City Attorney/City Prosecutor Department.

The city’s construction tax is 1.92% of the value of structures included in a building, swimming pool or similar permit. Waiving the tax would reduce city revenue, although the fact sheet does not estimate the total financial impact.

The Eaton Fire began Jan. 7, 2025, and damaged or destroyed 185 structures in Pasadena, most of them single-family homes and accessory structures, according to the document.

The exemption would apply to residential repairs meeting qualification criteria previously established by the council. Those criteria are not detailed in the fact sheet.

The Planning and Community Development Department would implement the ordinance.