Temporary Decline in Value - Proposition 8

The Assessor's Office recognizes the changing values of properties within Placer County. The current 2011 assessment roll reflects declines in market value for approximately 41% of the properties in the county. During spring 2012, the Assessor's Office will once again review approximately 150,000 properties to determine the market value as of January 1, 2012. The market value as of January 1, 2012 will be compared to the protected Proposition 13 base year value so that the lesser is enrolled and reflected on the 2012-2013 tax bills. Property owners will be notified in July 2012 of their property value.

If you believe that the market value on January 1, 2012 was less than the amount shown on the notice you will receive in July 2012, a Decline in Value application will be available on our website located below. The filing period for a Decline in Value review is July 1st through December 31st of each year. For additional information on Decline in Value and Proposition 8, refer to the sections below or contact the Assessor's Office at (530) 889-4300.

Residential Decline in Value Review Application - Not available until after July 1, 2012

Commercial Decline in Value Review Application - Not available until after July 1, 2012

Proposition 13 - Base Value

Proposition 13, passed in 1978, established the base year value concept for property tax assessments. Under Proposition 13, assessments for the year 1975-76 serve as the original base year values. Thereafter, a new base year value is established whenever a property is purchased, newly constructed or changes ownership. The base year value may increase a maximum of 2 percent per year.

Proposition 8 - Temporary Decline in Value

Proposition 8 was passed in 1979 and requires the Assessor to temporarily lower the assessed value of property. Under Proposition 8, the Assessor will review the market value as of January 1st, and enroll the lower value for the following tax year.

Reductions in assessed value under Proposition 8 are temporary and are reviewed annually until the factored base year value is again lower than market value and is reinstated.

Your assessed value can increase more than 2% in a single year if you have new construction (e.g. adding a room or swimming pool), had a temporary reduction due to Prop. 8, or had a qualifying change in ownership. Some property owners whose properties were in the Decline in Value Program may see an increase in their assessed value more than two percent (2%) when restoring to the factored base-year value.

Important factors to remember related to a Decline in Value review on your property:

• This type of property tax relief generally applies to more recently purchased property.
• Property acquired after January 1, 2012 is not eligible for Proposition 8 review for the 2012-13 tax year.
• The Assessor will be valuing the property as of the most recent January 1^st.   
• Certified Appraisers will analyze sales and other information for comparable properties.
• Property tax payments are due as indicated on your property tax bill. If a reduction in assessed value is warranted, a notice of correction and revised tax bill or refund will be processed by the County Tax Collector and County Auditor.