Qualifying Examples

  1.    

•    I purchased my home in the early 1990s.
•    The total assessed value on my 2008-09 property tax bill is $175,018.
•    The market value of my property on January 1, 2009, was $325,000.

Your property in this example does not qualify for Proposition 8 relief, as the assessed value is lower than the market value.

This type of property tax relief generally applies to more recently purchased property.

  2.

•    I purchased my home in July 2005 for $400,000.
•    The total assessed value on my 2008-09 property tax bill is $408,000
•    Sales of similar model homes in January through March 2009 were $385,000

Your property in this example may qualify for Proposition 8 relief, as the sales of comparable properties indicate that the market value on January 1, 2009, is lower than the assessed value.

  3.       

•    I purchased my home in September 2008 for $500,000.
•    The total assessed value on my 2008-09 property tax bill is $500,000
•    Sales of similar model homes in October through December 2008 were $500,000
•    Sales in April and May of 2009 were $475,000 and current listings for sales are even lower.

Your property in this example does not qualify for Proposition 8 relief for the 2009-10 tax year, as the assessed value is not lower than the market value on January 1, 2009.

However, you may qualify for Proposition 8 relief next tax year 2010-11, if the market value on January 1, 2010, is lower than the assessed value as the recent sales may indicate.

4.

A property was purchased for $500,000. During a three-year period, the real estate market declined and recovered. The property owner filed for a decline-in-value reassessment. The following table shows the trended base value of the property, the market value of the property, and the assessed value of the property. Assuming a 2% Annual Consumer Price Index (C.P.I):

	Protected Proposition 13  Base Value	January 1, 2009 Market Value	Assessed Value
Year 1	$500,000	$500,000	$500,000
Year 2	$510,000	$480,000	$480,000
Year 3	$520,200	$510,000	$510,000
Year 4	$530,604	$550,000	$530,604