Proposition 8

Print
Press Enter to show all options, press Tab go to next option

Sometimes the market value of a property falls below its Proposition 13 value. Proposition 8 addresses these declines by allowing the Assessor to reduce the assessed value of your property by enrolling the temporary decline in fair market value. Once reduced, your property's value is reviewed each year to compare its current market value to its Proposition 13 value, then using the lower of the two. Proposition 8 values can change from year to year as the market fluctuates.

While your Proposition 13 value may increase a maximum of 2 percent per year, there is no limitation on the Proposition 8 value. Your new assessed value may have risen more than 2 percent over last year's value. However, your assessment can never exceed your factored base year value under Proposition 13. Once the market value is higher than the Proposition 13 value, the Assessor will restore the Proposition 13 value as the assessed value.

 

Assessed Value Affected by Proposition 8

Graph of property value affected by Proposition 8

 

 

Assessed Value Not Affected by Proposition 8

Graph of property value not affected by Proposition 8

 

Unlike the first example, the market value in this example never drops below the Proposition 13 assessed value. No adjustment is necessary.