Q: How does Proposition 8 work?
A: Proposition 8 allows the Assessor to temporarily lower assessments when the market value on January 1 is lower than the factored base year value (Prop 13 value) for that year. Each case is reviewed individually upon request of the property owner or may be automatically reviewed if the Assessor determines there is a need. Prop 8 assessments are temporary reductions that recognize the fact that the market value of a property as of the January 1 lien date has fallen below its current Prop 13 factored value. Once a Prop 8 assessment has been enrolled, the property’s value is reviewed each year to determine whether its market value is less than its Prop 13 value. Prop 8 values can change from year to year as the market fluctuates. When the market value of the Prop 8 property increases above its Prop 13 factored value, the Assessor will once again enroll its Prop 13 factored value. In no case may a value higher than a property’s Prop 13 value be enrolled.
The following home was purchased for $95,000 in 2003.
Each year after purchase, the Prop 13 value was increased by an increment of 2%
(95,000 x 1.02 = $96,900).
Between 2003 and 2007, the market value of the home increased significantly, but
the property was taxed on the lower Prop 13 value.
Between 2008 and 2010, the home decreased in value below the Prop 13 value and was taxed on the lower market value.
In 2011 the market value rose above the Prop 13 value, and the taxes were returned to the lower Prop 13 value. Each year property taxes are based on the lower of the Prop 13 or the market value.
Q: Now that I have received a value reduction, what happens next?
A: Your taxable value will be reviewed every year until the market value of your home rises above its Prop 13 value. Please note that the value on which your taxes are based will change from year to year and could possibly rise at the same rate at which they fell. Unless you disagree with a value, there is no need to file for a review each year.
Q: What if I disagree with the taxable value on the notice?
A: If you believe the taxable value on your notice card is incorrect, you should call the Assessor at (559) 636-5100 and speak to an appraiser. If you still disagree, you should file an Assessment Appeal with The Clerk of the Board of Supervisors. The Assessment Appeal filing period is July 2 through December 2, 2013.