Top Team Realtor April Hsiung

Prop 8 - Review Due to Decline in Value Facts This proposition allows the Assessor to temporarily lower assessments when the market value on January 1 is lower than the factored base year value for that year. * Upon written application by the property owner to the Assessor's Office the property value will be reviewed as of the preceding January 1st lien date. * If the market value of the property is less than its factored base year value, market value will be enrolled for that specific assessment year. * Whenever such relief is provided, the Assessor is obligated to annually review and enroll the lesser of either market value or the factored base year value, but never higher than the factored base year value. If it is determined that the market value of the property exceeds the factored base year value of the property, the factored base year value will be restored for that assessment year. At this point the property will be no longer be annually reviewed and will be subject to regular annual 2% increases. Example:Value Reduction and Restoration Example * Initial base year value: In year 1, the subject property was purchased (transferred) to a new owner for $100,000. * Year 2: The market value of the property has grown to $115,000. The maximum amount the property could be assessed under proposition 13 is $102,000 ($100,000 + 2%). * Years 3-5: The market value of the property has gone down below the prop 13 limit. The assessment, upon request of the property owner, would be reduced to the actual market value. * Year 6: The property value of $120,000 has risen above the prop 13 limit. The assessed value is restored to the prop 13 limit of $110,408 ($102,000 + 2% for each successive year). * Year 7: The market value has continued to rise and the assessed value is restricted to a maximum increase of 2% ($110,408 + 2%). Note: Your taxable value can increase more than 2% in a single year if you have new construction (e.g., adding a room or swimming pool), had a temporary reduction due to prop 8, or had a qualifying change in ownership.