Decline in Value

 

If you believe that the market value of your property is less than the current assessment you should contact the Assessor’s Office for a review. A comparable sales analysis will be done on your property to determine whether you qualify for the provisions of Proposition 8.

Proposition 8, which was passed by the voters in 1979, allows for a temporary reduction in property tax assessments. The proposition states that if the market value on January 1 of any current year has fallen below the taxable value (as shown on your property tax bill), the Assessor's Office will temporarily lower the assessment to reflect current market conditions. The Assessor's Office will then review these properties annually on January 1 of each year.

When the market value has increased, the assessed value will also be increased (either incrementally or all at once depending on market conditions.) Under no circumstances, however, can this increase in value exceed the original assessed value, plus the annual inflation factor required by Proposition 13.

 

Frequently Asked Questions (FAQs)

What does Proposition 8 say?

Revenue and Taxation Code Section 51 requires the Assessor to enroll the lower of either the property's factored base year value (established under Proposition 13) or its market value as of the lien date (January 1). This reduction is temporary and the Assessor is required to review the market value of the property each lien date after the reduction until such time as the Prop 13 factored base year value is less than or equal to the market value. When the factored base year value is again enrolled, the property is no longer subject to the annual review, and will receive indexing not to exceed 2% per year.

 

Do properties other than single-family residences qualify?

Yes, all real property qualifies.  However, the land and improvements are valued as a unit and cannot be considered separately for the Prop 8 temporary reduction.

 

Once the Assessor lowers the value will it change?

The Assessor is required to review the temporary Prop 8 value each lien date following the initial reduction. The Prop 8 value can be further reduced or increased depending on the property's market value as of the lien date, January 1 of each year. Just as there is no limit on the amount of reduction, there is no limit to the amount being restored up to the Prop 13 factored base year value.

 

If I have been granted a reduction for the current year will I have to request another review next year?

No, once you have been granted a reduction pursuant to Prop 8 your next year's value will automatically be reviewed. A Value Notice will be sent to you in July, which will indicate our findings.

 

What will happen to my assessment if values start to rise?

Your taxable value reduction to market value is temporary and the Assessor is required to review the market value of the property each lien date after the reduction, until such time as the Prop 13 factored base year value is less than or equal to the market value. Unless there is a change in ownership or new construction, this increase in value cannot exceed the original assessed value plus the annual inflationary factor not to exceed 2% per year.

 

 

Important factors to remember when requesting a decline review on your property:

• This type of property tax relief generally applies to more recently purchased property.
• The Assessor will be valuing the property as of the most recent January 1.  Proposition 8 does not allow for relief pertaining to other dates and supplemental assessments.
• The total assessed value will be reviewed. There is no legal provision to review individual land and improvement assessments; only the total assessed value.
• Certified Appraisers will analyze sales and other information for comparable properties to determine market value.
• Comparable sales utilized must record no more than 90 days after January 1  of the current year.
• Property tax payments are due as indicated on your property tax bill. If a reduction in assessed value is warranted, a notice of correction and revised tax bill or refund will be processed by the County Tax Collector and County Auditor.

 

If you think your property is assessed at a value that is higher than the market value as of January 1, 2012, please submit a request in writing for a Prop 8 review or call the Assessor’s Office to request a review.

The Assessor will review the property assessment as of January 1, 2012, for the 2012-2013 tax year.

Our appraisal staff will review your request and you will be notified by mail of the results.

If you are not in agreement with the Assessor’s decision, you have the right to file an appeal with the Assessment Appeals Board. The filing period is from July 2 through November 30, inclusive. Assessment appeal applications are available from the Office of the Clerk of the Board, Yuba County.