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Proposition 8 (Decline in Value):

Proposition 8 allows the Assessor to review both the factored base-year value and the current market value of a property as of January 1 of each year and enroll the lesser value. When the current market value replaces the higher Proposition 13 value, that lower value is commonly referred to as a "Prop 8 Value". In no circumstance can the Assessor value a property higher than its Proposition 13 factored base-year value.

Although the annual increase for Proposition 13 values is limited to no more than 2%, the same restriction does not apply to values adjusted under Proposition 8. Actual market value must be enrolled as a Proposition 8 value and any subsequent increase or decrease in market value is enrolled regardless of its percentage. However, when the current market value of a Proposition 8 property exceeds its factored Proposition 13 base-year value, the Assessor simply reinstates the factored Proposition 13 value.

Property owners who feel that their assessed value exceeds current market value should contact our office and request a Proposition 8 review. The last day to request a Proposition 8 review of the assessment on the current tax bill is March 15. Requests made after March 15 will apply to the upcoming tax year. Owners may also elect to file a formal assessment appeal during the open filing period.

Proposition 13:

Proposition 13, passed in 1978, established the base year value concept for property tax assessments. Under Proposition 13, the 1975-1976 fiscal year serves as the original base year used in determining the assessment for real property. Thereafter, annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or two percent, whichever is less. A new base year value, however, is established whenever a property, or portion thereof, has had a change in ownership or has been newly constructed.

Under Proposition 13, the property tax rate is fixed at one percent of assessed value plus amounts required to repay any assessment bonds approved by the voters.

Proposition 58:

The parent-child transfers under Proposition 58 include all types of transfers of title from parents to children or from children to parents.

Further, this Proposition includes all types of real property owned by the transferor, including all the value of his/her principal place of residence and on the first one million dollars ($1 million) of the enrolled value of all other types of property. A mother and father can combine their exclusion for a limit of $2 million dollars.

Current law requires that a claim form be filed within three (3) years after the date of the transfer of real property or prior to the transfer of the real property to a third party, whichever is earlier. However, even if a claim is not made within this filing period, a claim is considered timely if it is filed within anytime prior to or within six (6) months after the mailing date of a Notice of Supplemental Assessment or Notice of Proposed Escape Assessment, whichever is later. For example if a taxpayer received a Notice of Supplemental Assessment for a parent-child transfer dated January 1, 1994, and then received a Notice of Proposed Escape Assessment dated April 1, 1994, the taxpayer would have six (6) months from April 1, 1994 to file a claim with the Assessor.

Proposition 193:

In March 1996, California voters approved Proposition 193, which expanded the parent-child property tax relief under Proposition 58 to include transfers of real property by grandparent(s) to their grandchild(ren). The provisions of this constitutional measure apply only to transfers, including a change in ownership arising on the date of a decedent's death, which occur on or after March 27, 1996.

In order to qualify for this relief, all of the parents of that grandchild (who qualify as the children of the grandparents) must be deceased as of the date of transfer.

Similar to Proposition 58, current law requires that the claim form be filed within three (3) years after the date of the transfer of real property or prior to the transfer of the real property to a third party, whichever is earlier. However, even if a claim is not made within this filing period, a claim is considered timely if it is filed within anytime prior to or within six (6) months after the mailing date of a Notice of Supplemental Assessment or Notice of Proposed Escape Assessment, whichever is later. For example if a taxpayer received a Notice of Supplemental Assessment or Notice of Proposed Escape Assessment, whichever is later.