Proposition 8 Information
(Decline in Market Value)
Proposition 8, passed in November 1978, amended Proposition
13 to reflect declines in value. As a result, Revenue and Taxation Code
Section 51 requires the Assessor to annually enroll either a property's
factored Proposition 13 base year value or its Market Value as of January
1 (lien date), taking into account any factors causing a decline in value,
whichever is less.
Proposition 8 reductions are temporary reductions which recognize the fact
that the current market value of a property has fallen below it's current
factored Proposition 13 base year value.
When and if the market value of the previously reduced assessment
(Proposition 8) increases above its Proposition 13 factored base year
value, the Assessor will once again enroll it's Proposition 13 factored
base year value. Proposition 8 values can change from year to year as the
market fluctuates up and down.
Any properties that have received Proposition 8 reductions in the prior
year are automatically reviewed in the following year to ascertain whether
that year's lien date value should be maintained, lowered, or increased.
Unless there is a change in ownership or new construction, your assessment
can never increase above the factored Proposition 13 base year value.
You have the right
to file an appeal with the Clerk, Assessment Appeals Board's office. The
filing period is from July 2 through November 30, inclusive. This form may
be downloaded from the
Board's website, or you may contact them at (831) 755-5066.
Please contact the Assessor's Office should you have any questions. Our
office hours are from 8:00 a.m. to 5 p.m. and we may be reached at
Questions and Answers
Regarding Proposition 8 Assessment Review Process
Q. Is the Assessor required to restore my factored base
year value even if itís more than a 2% increase?
A. Yes. Just as there is no limit to the amount of reduction, there
is no limit to the amount being restored up to the factored Proposition 13
base year ceiling amount.
Q. If I have been granted a reduction for the current year will I have
to request another review next year?
A. No. Once you have been granted a reduction pursuant to
Proposition 8 your next year's value will automatically be reviewed. A
Notification of Assessed Value card will be sent to you in July, which
will indicate our findings.
Q. What should I do if I disagree with the Proposition 8 value placed
on my property?
A. If after review of the Notification of Assessed Value card you
disagree with the value you have until November 30th of that year in
which to file an Application for Changed Assessment with the Clerk, Board
Q. Why isn't the reduction under Proposition 8 permanent?
A. Proposition 8 (now California State Revenue and Taxation Code
Section 51) requires the Assessor to compare each property's factored base
year value with the current market value, and enroll the lessor of the two
Q. What will happen to my assessment if values start to rise?
A. Here is an example of that situation (assume a 2% inflation
factor for all years concerned).
-Property is purchased in 1999 for $400,000. For 2003 the factored base
year value is $432,973. ($400,000 x 1.0824, the factor of 1.0824 was
arrived at by compounding 2% over four years).
-However a Proposition 8 reduction is made at $415,000 as this is the
January 1, 2003 market value and the lower of the two figures.
-In 2004 the market improves and the January 1, 2004 market value of the
property in this example is $450,000. The factored base year value for
2004 would be $441,632 (2% higher than the previous year's factored base
-Under Proposition 8
guidelines for the 2004 fiscal year we would be required to assess the
property at $441,632 which is lower than the $450,000 market value. In
this example your property would be raised from $415,000 to $441,632 and
you would no longer be under Proposition 8 guidelines.
Q. What if my January 1, 2004 market value is $425,000 rather than
A. Using the same example, we would raise your value to $425,000,
which is lower than the factored base year value of $441,632. Again, the
rule for any given year is to enroll either the factored base year value
or the market value, whichever is lower.
In this example, your property would still be under Proposition 8 review
as the market value of $425,000 is less than the factored base year value.
Terms You Should Know About the
Proposition 8 Assessment Review Process
Base Year- Under Proposition 13 the assessment year
1975-76 serves as the original base year value. Thereafter, any assessment
year in which real property, or a portion thereof, is purchased, is newly
constructed or changes ownership shall become the base year used in
determining the assessment for such real property, or portion thereof.
Factored Base Year Value- If you owned your property before March
1, 1975, the "full cash value will be the value as it appeared on the
1975-76 assessment roll increased a maximum of 2 percent per year in
accordance with Proposition 13. If you acquired or constructed the
property since March 1, 1975, "assessed" value is the value at the time
you took title or completed construction, plus a maximum of 2 percent each
Fair Market Value- as defined in Revenue and Taxation Code Section
110, "The amount of cash or its equivalent that property would bring if
exposed for sale in the open market under conditions in which neither
buyer nor seller could take advantage of the exigencies of the other, and
both the buyer and seller have knowledge of all of the uses and purposes
to which the property is adapted and for which it is capable of being
used, and of the enforceable restrictions upon those uses and purposes."
Lien Date- January 1, beginning in 1997; March 1 prior to 1997.
Important Point Regarding Proposition 8:
The Assessor can only consider the market value as of the
lien date (January 1st).
Our office will determine the market value of your property
by analyzing sales of comparable properties in the area and other
When supplying information the comparable sales must be no
later than 90 days after the lien date.
Thus a sale cannot be beyond March 31st of the lien date in
question but there is no limit as to how far backwards in time a
comparable sale may be.
Proposition 8 relief (Revenue and Taxation Code Section 51)
is specific to the January 1 fair market value and does not allow for
relief pertaining to other dates. As a result supplemental assessments are
not addressed when Proposition 8 relief is sought