Proposition 8 / Value Decline

Temporary Decline in Taxable Value

When an economic downturn occurs, it may affect the local real estate market causing housing and commercial values to drop. The law provides property tax relief to property owners if the value of their property falls below its assessed value.
Generally, property is assessed at the lesser of two values:
  1. Factored base year value (most likely the purchase price adjusted annually for inflation, not to exceed 2% per year)
  2. Current market value on January 1.
When the market value is the lesser value, the “Decline in Value Assessment Program” (Proposition 8) or "51" (Revenue and Taxation 51) allows for a temporary reduction in assessed value.
If a property is enrolled in the Decline in Value Assessment Program, its assessed value is subject to annual review in subsequent years in light of current economic and market factors. For example, the assessed value may be:
  • increased to no more than the “factored base year value”
  • Held at the prior year’s assessed value
  • Reduced further

Proposition 8 Assessed Value Increases Exceeding Two Percent (Restoration)

Some Tulare County property owners whose properties were in the Decline in Value Assessment Program (Prop 8) may see an increase (restoring to factored base year value) in their assessment values by more than two percent (2%).

Note: Although Proposition 13 expressly limits annual increases in a property’s “factored base year value” to no more than two percent per year, there is no such limitation on annual increases to a property’s assessed value in the Proposition 8 program, as long as the factored base year value is not exceeded.

 Proposition 8 passed in November 1978, amending Proposition 13 to recognize declines in market value for property tax purposes.  Once a Prop 8 reduced value has been enrolled, that property’s value must be reviewed each year and its assessed value will go up or down in tandem with its market value as of the January 1 of each year.
Frequently Asked Questions
  • Do I have to pay my property tax bill since I filed for a review or an assessment appeal or if I just disagree with my value?
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  • Do I have to request a review under Prop 8 annually?
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  • How are Prop 8 and Prop 13 related?
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  • How long does it take the Assessor’s Office to process my review?
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  • How may I find out the status of my review?
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  • How will my lender be notified of the Prop 8 value so that my property tax impound account can be adjusted?
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  • I bought my property earlier this year for less than the assessed value showing on my main roll tax bill. Why isn’t my purchase price used as my assessed value?
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  • If I filed a review with the Assessor, will I be contacted once my review is complete?
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  • If I’m due a refund as a result of a lowered value, how long will it take?
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  • My assessed value went down but my taxes went up. Why?
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  • My neighbor lives in the same model as mine yet her assessed value is less. Why?
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  • My Prop 8 value increased more than 2%. Why?
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  • My Prop 8 value remained the same as last year. Why?
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  • What happens if I file both a review and an appeal for the same assessment?
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  • What is the difference between a Prop 8 review and an assessment appeal?
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  • What should I do if I disagree with the value placed on my property?
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  • Why are decline-in-value reductions in assessed value often referred to as “Prop 8” values?
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  • Why isn’t the reduction under Prop 8 permanent?
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  • Why wasn’t my property value reduced?
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