Revenue and Taxation Code Section 51 requires the assessor to enroll either a property’s Factored-Base-Year Value (established under Proposition 13) or its market value as of the lien date. 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 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.
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No, there is no charge to have your value reviewed for a decline in value.
Yes, all real property qualifies.
The assessor is required to review and increase the value to market or the Factored-Base-Year Value as of each lien date following the initial reduction. Just as there is no limit on the amount of reduction, there is no limit to the amount being restored to the Factored-Base-Year Value.
Yes, just as there is no limit to the amount of reduction when arriving at market value, there is no limit to the amount being restored when market value increases, up to the factored Proposition 13 base year amount.
No, once you have been granted a reduction pursuant to Proposition 8 your next year's value will automatically be reviewed. A Notification of Assessed Value will be sent to you in July, which will indicate our findings.
If after review of the Notification of Assessed Value you disagree with the value, you have until September 15 (or the next business day if the 15th falls on a weekend or holiday) of that year in which to file an Assessment Appeal Application (PDF) with the Assessment Appeals Board.
Proposition 8 (now California State Revenue and Taxation Code Section 51) requires the Assessor to compare each property's Factored-Base-Year value with the current market value, and enroll the lesser of the two each year.
Once a property value has been lowered for Proposition 8, your next year’s assessed value will be automatically reviewed. The lower of current market value and Factored-Base-Year Value will be enrolled.
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 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.
No, the total property value must be considered. Only total assessed value can be compared. The lower of total property current market value and total property assessed value is enrolled.