Property Value Notice
If you received a “Property Value Notice” and have any questions not answered below, please feel free to contact us by phone at (415) 499-7215 or by email using the form below. When contacting us by phone or email, please provide your Parcel Number located at the top of the notice.
Why did I receive this Property Value Notice?
You may receive a Property Value Notice due to changes in ownership, new construction, or a parcel number change. Also, agriculture, multi-unit residential and commercial properties may receive the notice. If your assessed value has been temporarily reduced under Proposition 8, or if your assessed value has been returned to its Proposition 13 Factored base year value you will receive a notice.
What does Proposition 8 say?
Proposition 8 (Revenue and Taxation Code Section 51) was passed in 1979 and directs 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 Proposition 13 factored
base year value is less than or equal to the market value.
What is a Proposition 13 Factored Base Year Value?
Proposition 13, passed in 1978, established the base-year value concept for property tax assessments. Under Proposition 13, assessments for the year 1975-76 serve as the original base year values. Thereafter, a new base-year value is established whenever a property is purchased, newly constructed or changes ownership. The factored base year value may increase by a maximum of 2 percent per year.
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 “Decline in Value” pursuant to Proposition 8. Your
next year's value will automatically be reviewed. A Property Value Notice will be sent to you in July, which will indicate our findings.
Only when the market value increases and the assessed value has been restored to
the factored base year value will our annual review stop.
Why isn't the reduction under Proposition 8 permanent?
Reductions in assessed value under Proposition 8 are temporary and are reviewed annually until the Proposition 13
factored base year value is again lower than the lien date market value and is reinstated.
What if after having been granted a reduction, my value continues to decline?
Once a property has received a decline in value under Proposition 8, your annual lien date (January 1) assessed value will be automatically reviewed. The lower of current market value or Proposition 13
factored base year value will be enrolled.
What will happen to my assessment when values start to rise?
It is important to remember that a reduction under Proposition 8 is temporary, and the assessor is required to review the market value of your property annually each lien date. As your property value increases, the assessor must restore your property’s assessment to the factored base year value or the market value, whichever is lower. Properties that were granted a Decline in Value may see an increase in assessed value of more than two percent (2%) when restoring to the
factored base year value . When the current market value of a Proposition 8 property exceeds its Proposition 13
factored base year value, the Assessor simply reinstates the
factored base year value .
The Assessor's Office reduced my value, but I believe it's even lower than that. What can I do?
Before filing the application, we recommend that you first discuss your situation with a member of our appraisal staff. Discussing the appraisal of your property with the Assessor's staff will assist you in understanding the methods and market data used in determining taxable value.
If you disagree with an assessment made by the Assessor, you have the right to appeal that assessment to the Assessment Appeals Board by filing an Application for Changed Assessment between July 2 and November 30, inclusive.
The Assessment Appeals Board is an independent body appointed by the Board of Supervisors. The filing of the application, however, does not excuse you from paying taxes as they become due. To avoid penalties, you must pay your taxes on time.
Proposition 8 Qualifying Examples
- I purchased my home in the early 1990s.
- The total assessed value on my 2009-10 property tax bill is $498,787.
- The market value of my property on January 1, 2010, was $740,000.
Your property in this example does not qualify for Proposition 8 relief, as the assessed value is lower than the market value. This type of property tax relief generally applies to more recently purchased property.
- I purchased my home in July 2005 for $750,000.
- The total assessed value on my 2010-11 value notice or property tax bill is $795,906.
- Sales of similar model homes in September 2009 through March 2010 were $695,000.
Your property in this example may qualify for Proposition 8 relief, as the sales of comparable properties indicate that the market value on January 1, 2010, may be lower than the assessed value.
Important Facts to Remember
- This type of property tax relief generally applies to more recently purchased or constructed property.
- The Assessor will be valuing the property as of the most recent January 1st (lien date). Proposition 8 does not allow for relief pertaining to other dates nor to supplemental assessments.
- The total assessed value will be reviewed. There is no legal provision to review separate land and/or improvement assessments; only the total assessed value.
- Comparable sales used to appraise your property must be recorded no more than 90 days after January 1.
- Under no circumstances does the Assessor assess your property at a value greater than its factored base year value.
- Property tax payments are due as indicated on your property tax bill. If a reduction in assessed value is granted, a notice of correction and revised tax bill or refund will be sent to you.
- A “Request for Assessment Review” submitted to the Assessor's Office is not the same as an "Application for Changed Assessment" that is filed with the Assessment Appeals Board.