Proposition
8 - Temporary Decline in Value
During the week of July 21st, approximately 80,000 notices communicating 2008 assessment roll values were mailed to property owners. Over 70,000 of these value notices were mailed to recognize the results of Assessor staff reviewing residential properties. The program was conducted to identify residential properties where a change in ownership recently occurred and a Proposition 8 reduction in value was warranted for the January 1, 2008 lien date. The appraisal review program consisted of an analysis of five months worth of property sales around January 1, 2008, to determine the current market value for each residence. The current market value was then compared to the protected Prop 13 base year value, so that the lesser value could be enrolled and reflected in 2008 tax bills.
As a result of the review, over 40,000 property owners were advised that their property values as of January 1, 2008 are below the Prop 13 base, and the lesser value will be the basis for their 2008 property taxes. An additional 30,000 property owners were noticed that their properties were reviewed for a decline in value as of January 1, 2008, and at this point, the factored Proposition 13 base value is still lower than market value for the 2008 lien date.
Of the 143,000 residential properties on the assessment roll, Assessor staff have reviewed and identified over 40,000 that require recognition of a Prop 8 decline for the January 1, 2008 lien date. If you feel that your property was missed in this analysis, you may request an individual review for your property by completing a “Decline in Value” form and returning it to the Assessor Department. If you have additional questions related to Prop 8, there is a variety of information below for your review, or you may contact the Assessor Department at 530-889-4300.
Decline in Value Form
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.
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 1st. 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 between October 1, 2007 and March 31, 2008.
- 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
Proposition 8 and Related Property Tax Laws (BOE Link)