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, the 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 change. However, when the current market value of a Proposition 8 property exceeds its factored Proposition 13 base-year value, the Assessor simply re-instates 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 October 30. Requests made after October 30 will apply to the upcoming tax year. Owners may also elect to file a formal assessment appeal during the open filing period.
Prop 8 (Decline in value review process)
Proposition 8, passed in November 1978, amended Proposition 13 to reflect declines in value. As a result, Revenue & Taxation Code Section 51 requires the Assessor to annually enroll either a property’s Proposition 13 base year value factored for inflation, or its Market Value as of January 1(taking into account any factors causing a decline in value), whichever is less.
Prop 8 reductions in value are TEMPORARY reductions which recognize the fact that the current market value of a property has fallen below its current (Prop 13) assessed value. Once a Prop 8 value has been enrolled, a property’s value must be reviewed each following January 1, to determine whether its then current market value is less than its Prop 13 factored value. When and if the market value of the Prop 8 property increases above its Prop 13 factored value, the Assessor will once again enroll its Prop 13 factored value. Prop 8 values can change from year to year as the market fluctuates up and down, but in no case may a value higher than a property’s Prop 13 factored value be enrolled.
For any given Roll Year, Prop 8 assessments may be adjusted by the Assessor no later than one year after the roll is published (normally July 1). Prop 8 assessments may also be appealed to the Assessment Appeals Board during the normal appeal periods (July 2 through November 30). Prop 8 assessment requests for reductions regarding the current roll which are denied after the normal assessment appeal period has expired cannot be appealed to the County Board of Equalization. Prop 8 assessments adjusted by the Assessor (not the County Board of Equalization) may be appealed no later than 60 days after the postmark date of the corrected tax bill or refund check.
Property owners who feel that their assessed value exceeds current market value should contact our office and request an Informal Review of their property. The Informal Review is only for the up-coming tax year, not the current year. The filing dates are December 1 through March 31. Please be aware that an Informal Review is not a Formal Appeal. To protect your rights to a Formal Appeal you must file that Appeal with the Clerk of the Board between July 2 and November 30 at (442) 265-1020. Filing this application for reduced assessment does not relieve the applicant from the obligation to pay the property taxes on or before the applicable due date shown on the tax bill.
If you want to download the Informal Review form, Click Here. If you want to review the Prop 8 process and view some examples of assessments involving properties declining in value select Prop8 Review document.
If you need more information you can contact the Assessor's office by calling (442) 265-1300 or visit our office at 940 W. Main St., Suite 115, El Centro, CA 92243. Our office hours are 8:00 A.M. to 5:00 P.M. Monday through Friday.