Proposition 8 - Temporary Decline in Value
The Assessor Department recognizes the changing values of properties within Placer County. The current 2008 assessment roll reflects declines in market value for approximately 30% of the residential properties in the county. During Spring 2009, we will once again review approximately 150,000 properties to determine the value as of January 1, 2009. The market value as of January 1, 2009 will be compared to the protected Proposition 13 base year value so that the lesser will be enrolled and reflected on the 2009-2010 tax bills. Property owners whose value was reviewed will be notified in July 2009 of their property value.
The Decline in Value application will be available July 2009. For additional information on Decline in Value and Proposition 8, refer to the links below or contact the Assessor Department at (530) 889-4300.
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 requires the Assessor to temporarily lower the assessed value of property. Under Proposition 8 the Assessor will 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 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, 2009 are not eligible for Proposition 8 review for the 2009-10 tax year.
- The Assessor will be valuing the property as of the most recent January 1st.
- 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 between October 1, 2008 and March 31, 2009.
- 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
The filing period for annual assessment roll values is July 2nd through September 15th inclusive.
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.
For more information, see the links below.
Links to more information
Questions and Answers About Proposition 8
Qualifying Examples
Commonly Used Terms
Assessment Appeals Board
Proposition 8 and Related Property Tax Laws (BOE Link)