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Proposition 8: Decline-In-Value Reassessment.
You are required to submit a professionally signed CMA that has been signed before March 30th but cannot be more than 90 days old.
Team Chacon is your professional Comprisable Market Analysis specialists.
Common Questions about Proposition 8
WHAT IS A "PROPOSITION 8" PROPERTY?
The law requires the Assessor to annually enroll either a property's Proposition 13 value (factored for inflation no more than 2% annually), or its current value as of January 1 (lien date) of each year, whichever is less. When the current market value replaces the higher Proposition 13 value on the roll that lower value is commonly referred to as a "Prop 8 Value."
IS THE "PROP 8 VALUE" PERMANENT?
NO; The law requires the Assessor to annually reassess all Proposition 8 properties and adjust them to reflect either their current market value on January 1st or their Proposition 13 factored base year value, whichever is less.
HOW BIG CAN THE ADJUSTMENT BE?
Once the property is assessed under Proposition 8, its value may go up or down or stay the same each year in tandem with market value. In those areas where market values have increased, we anticipate Proposition 8 values will also increase to approximate curren market levels. It is important to understand that in no case may the Assessor value a property higher than its Proposition 13 factored base year value.
HOW CAN THE INCREASES EXCEED THE 2% MAXIMUM SPECIFIED IN PROPOSITION 13?
Although the annual increase for Proposition 13 values is limited to no more than 2% annually, the same restriction does not apply to values adjusted under Proposition 8. Actual market value must be enrolled 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 Proposition 13 value (factored for inflation), the Assessor reinstates the Proposition 13 value.
WHEN WILL THE VALUE ADJUSTMENT TAKE EFFECT?
Valuation changes for the 2008 tax year will be effective for the 2008-2009 Tax Year (July 1, 2008 thru June 30, 2009) and will appear on the annual property tax bills received this fall.
WHAT CAN OWNERS DO?
Property owners who feel their new assessed values are incorrect should discuss the matte with the Assessor's staff or by contacting the nearest Assessor's District office noted on the back of the "Notification of Assessed Value" form. You may also contact your County Assessor's office website by clicking their logo on this page. Owners may also elect to file a formal assessment appeal with the Assessment Appeals Board, between July 2 and November 30. Instructions for filing an appeal are located on the back of the "Notification of Assessed Value."
