Qualifying Examples

I purchased my home in the early 1990s.
The total assessed value on my 2007-08 property tax bill is $175,018.
The market value of my property on January 1, 2008, 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.

I purchased my home in July 2005 for $400,000.
The total assessed value on my 2007-08 property tax bill is $408,000
Sales of similar model homes in January through March 2008 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, 2008, is lower than the assessed value.

I purchased my home in September 2007 for $500,000.
The total assessed value on my 2007-08 property tax bill is $500,000
Sales of similar model homes in October through December 2007 were $500,000
Sales in April and May of 2008 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 2008-09 tax year, as the assessed value is not lower than the market value on January 1, 2008.

However, you may qualify for Proposition 8 relief next tax year 2009-10, if the market value on January 1, 2009, is lower than the assessed value as the recent sales may indicate.

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):

Base Value Trended

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