Proposition 8 - Temporary Decline in Value

      In recognition of declining real estate values, the Placer County Assessor's Office reviewed and temporarily reduced over 17,000 properties last year (2007) pursuant to Proposition 8.  Once again this year, the Assessor is in the process of reviewing real property in the county to recognize those properties where the market value as of January 1, 2008 is less than the property owner's purchase price (factored Proposition 13 base year value).  With a significant decline in value since last year about 50,000 residential properties are being reviewed. 

    The 2008 assessment roll will be completed in mid July.  During the week of July 21st, value notices will be sent to owners whose properties qualify for a temporary reduction through the Assessor's value reduction review.  If you do not receive a notice of Prop 8 value reduction by the end of July, or do not agree with the value reduction, you may file a "Decline in Value Review" form at that time.  

    A downloadable "Decline in Value Review" form will be posted on this website in mid July. 

    All assessed value reductions will show up in a reduced property tax bill when the 2008 real estate tax bills are mailed in October.  

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 is increased a maximum of 2 percent per year.

Proposition 8 – Temporary Decline in Value

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

Factored-Base-Year Value Proposition 13

         or

Market Value Proposition 8

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 PlacerCountyproperty 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.

Please review “Protect Your Rights” below.

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, 2008 are not eligible for Proposition 8 review for the 2008-09 tax year.
• The Assessor will be valuing the property as of the most recent January 1^st.  Proposition 8 does not allow for relief pertaining to other dates and supplemental assessments.
• The total assessed value will be reviewed. There is no legal provision to review individual land and improvement assessments; only the total assessed value.
• Certified Appraisers will analyze sales and other information for Comparable properties.
• Comparable sales utilized must record no more than 90 days after January 1.
• 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.

Assessment Appeals

  A “Request for 2008 Decline in Market Value Reassessment” submitted to the Assessor Department is not the same as an “Application for Changed Assessment” that is filed with the Assessment Appeals Board.                                                              

Protect your rights

  You have the right to file an appeal with the Assessment Appeals Board. The filing period is from July 2 through December 1, inclusive. Assessment appeal applications are available from that office.

  The Assessment Appeals Board is an independent body appointed by the Board of Supervisors to serve as the local Board of Equalization. The Assessment Appeals Board will determine the value of the property after hearing evidence from the applicant and a representative of the Assessor's Office.   

  Links to more information

        Questions and Answers About Proposition 8

        Qualifing Examples

        Commonly Used Terms

        Assessment Appeals Board