Proposition 13, passed in California in 1978, caps the growth of property’s assessed value at no more than 2 percent each year unless the market value of a property falls lower. When this happens, Proposition 8, also passed in 1978, allows the property to be temporarily reassessed at the lower value. However, if the market value rises, the assessed value and resulting property taxes may increase more than 2 percent in a year up to the annually adjusted Prop. 13 cap.
This chart is for illustrative purposes only. The 2% indexing was not compounded in the examples.
For a more thorough explanation, download and read this Prop 8 example (PDF) of two hypothetical homes in Sierra County. You can also read our Prop 8 FAQ as well.
If you would like to request a Proposition 8 review, submit a completed Decline In Value Request (PDF) no later than October 30th.