Decline in Value – Resources

The following resources provide information on guidance on decline-in-value Proposition 8.

California Constitution

Section Title
Article XIII A, §2 Tax Limitation

Revenue and Taxation Code

Section Title
50 - 53 Base Year Values
601-623 Assessment Roll
1601-1616 Equalization by County Board of Equalization Generally
4831-4842 Corrections Generally

Property Tax Rules

The BOE is mandated to prescribe rules and regulations to govern local boards of equalization when equalizing and County Assessors when assessing in compliance with the rulemaking procedures adopted by the California Office of Administrative Law. Pursuant to that mandate, the BOE has adopted various Property Tax Rules, which are contained in Title 18 of the California Code of Regulations.

Rule Title
461 Real Property Value Changes
474 Petroleum Refining Properties (in effect October 1, 2015)

Assessors' Handbook (AH)

The AH is a series of manuals developed by the staff of the BOE in an open process. The objective of the AH is to give County Assessors, their staff, and other interested parties an understanding of the principles of property assessment and real and personal property appraisal for property tax purposes. Additionally, the AH presents the BOE staff's interpretation of rules, laws, and court decisions on property assessment.

In attempting to relate the advice or guidance provided in the AH, care must be taken to ensure that the advice has not been superseded by subsequent legislative or administrative action, court decisions, or reconsideration of staff's position. Following advice provided in the AH is not reasonable reliance upon written advice for the purpose of obtaining relief from a failure to pay tax, interest, and/or penalty. In any instance where there is an inconsistency between a statute or regulation and an AH section, statutory or regulatory law is controlling.

The following AH sections provide information on declines in value under Proposition 8.

Rule Title
Manual Assessment Appeals Manual
401 Change in Ownership
410 Assessment of Newly Constructed Property
501 Basic Appraisal
502 Advanced Appraisal
504 Assessment of Personal Property and Fixtures
510 Assessment of Taxable Possessory Interests
511 Assessment of Manufactured Homes and Parks
521 Assessment of Agricultural and Open-Space Properties
560 Assessment of Mining Properties

Letters To Assessors (LTAs)

LTAs provide an ongoing advisory service for County Assessors and other interested parties. The letters present BOE staff's interpretation of rules, laws, and court decisions on property tax assessment.

The following LTAs pertain to assessment or procedural issues involving declines in value in California.

Letters To Assessors (LTAs)
Letter to Assessor Title
79/39 Real Property Value Changes
79/59 Effect of Proposition 8 Upon Machinery and Equipment Valuation
79/143 Effect of Assembly Bill 1488 Upon Fixtures and Machinery and Equipment Classified as Improvements
80/129 Judgment: State Board of Equalization v. San Diego County Assessment Appeals Board
81/19 Recent Judicial Decisions
82/25 The Consumer Price Index and Property Having Stagnant or Declining Value
86/04 Applying Proposition 8 to Fractional Interests in Real Property
86/36 Declines in Value on First Lien Date (Proposition 8)
92/24 Declines in Value
92/63 Declines in Value Assessment Uniformity
93/71 Declines in Value: Notification of Amount of Assessment
95/54 Assessment Appeals and Roll Corrections
96/52 Informal Assessment Review
2004/060 Annual Increases in Value
2009/024 Decline in Value: Excluded New Construction
2009/038 Errors in Assessed Values Established Under Proposition 8
2011/051 Decline in Value Roll Corrections: Floating Homes and Manufactured Homes
2012/053 Guidelines for Active Solar Energy Systems New Construction Exclusion
2014/023 Guidance Regarding Taxable Possessory Interests Property Taxable Rule 21(d), Term of Possession for Valuation Purposes
2024/031 Active Solar Energy System New Construction Exclusion: Clarification of Sunset Date Extension

Annotated legal opinions are California State Board of Equalization counsel summaries of select legal rulings and synopses of past advice. The following legal opinions pertain to questions involving declines in value.

Title Annotated Legal Opinion
850.0016 Value – Decline in Value (Appraisal Unit)
850.0017 Value – Decline in Value (Appraisal Unit)
850.0019 Value – Decline in Value (Recognizable Income Impairments)
850.0020 Value – Decline in Value (Usable Value Approaches)
850.0030 Value – Lesser of Market Value or Factored Value
850.0031 Value – Lesser of Market Value or Factored Value

California Consumer Price Index

Current and prior year inflation factors are available on the LTA webpage. Select the appropriate year and search for the California Consumer Price Index LTA or use the Topical Index to search by topic.