Decline in Value – Frequently Asked Questions (FAQs)

My property has been enrolled under a Proposition 8 – decline in value for the past three years. This year, the assessed value increased by more than two percent. There was no change in ownership or new construction. Why did the value increase by more than two percent? Doesn't Proposition 13 limit annual increases in value to two percent?

Under Proposition 13, base year values may not be increased more than two percent per year. Properties in decline-in-value status under Proposition 8, however, are not limited to the maximum two percent increase, since such properties are not assessed according to their factored base year values. Instead, if a property remains in decline-in-value status for two or more consecutive years, the year-to-year change in value will reflect the change in market value regardless of the magnitude or direction of the change. In all cases, the factored base year value is restored once the market value increases to the point where it is equal to or greater than the factored base year value.

I think the assessed value of my home has been higher than the market value for the past two years. Can I request a Proposition 8 review for last year and this year?

No. Only the most recent January 1st assessment may be reviewed. Proposition 8 does not allow for relief for prior years and does not apply to supplemental assessments.

I filed a request form with my County Assessor to review my property's assessment for a possible decline in value. How will I be notified if my property's value is reduced?

Some Assessors will mail a notice. Others will mail a corrected tax bill. Contact your County Assessor's Office for specific procedures. If you have not received the results of the Assessor's review before your county's assessment appeal deadline, you may wish to submit a formal assessment appeal application with the county clerk of the board to protect your right to have your property's assessment reviewed.

I filed a request form with my County Assessor in May to ask that the value enrolled on my property as of January 1 be reviewed. Can I postpone paying the first installment of my property taxes that are due in November if the Assessor hasn't notified me of any changes to my property value?

No. You must pay your property taxes according to the tax bill you received or penalties and interest will incur. If a reduction in assessed value is warranted, a notice of correction and a revised tax bill or refund based on the difference in value will be processed by your County Assessor. If you have not received the results of the Assessor's review before your county's assessment appeal deadline, you may wish to submit a formal assessment appeal application with the county clerk of the board to protect your right to have your property's assessment reviewed.