Section 16 of Article XIII of the California Constitution provides for the establishment of local boards of equalization. The Legislature enacted sections 1601 through 1645.5 of the Revenue and Taxation Code to provide for the statutory requirements, and the State Board of Equalization has adopted Tax Rules 301-329 to provide further guidance and interpretation of the statutes. Additionally, many County Boards of Supervisors have adopted local rules for the appeals process.

After hearing all the evidence, an appeals board is required by law to determine the value of your property, which means that they can leave the value the same, decrease the value, or increase the value of your property. An appeals board is not bound by the value presented by you or the county assessor. The appeals board decision is final, and your only recourse would be to appeal their decision to your county's superior court.

When the market value of a property on the January 1 lien date falls below the factored base year value (assessed value), the assessor is obligated to review the property and enroll the lesser of the factored base year value or market value. The factored base year value of real property is the market value as established in 1975 or as established when the property last changed ownership or when the property was newly constructed.

A property that has been reassessed under Proposition 8 is then reviewed annually to determine its lien date value. The assessed value of a property with a Proposition 8 value in place may increase each lien date (January 1) by more than the standard two percent maximum allowed for properties assessed under Proposition 13; however, unless there is a change in ownership or new construction, a property's assessed value can never increase above its factored Proposition 13 base year value after adjusting for the annual increase.

Example:
A property previously assessed at $500,000 received a Proposition 8 reduction in value to $450,000 as of the lien date. By the next lien date, the property's market value had increased five percent, or $22,500, and, thus, the assessor enrolled a value of $472,500 for that year. Because the current market value is less than its current factored base year value of $510,000 ($500,000 + 2% annual increase), increasing the assessed value by five percent is legal since the two percent limitation of Proposition 13 applies only to increases in the base year value. Here, since the current market value continues to be less than the factored base year value, an increase beyond the two percent limitation is appropriate. As the year progresses, property values rebound dramatically and the market value of the property is now $525,000. Because the current factored base year value for this year is $520,200 ($510,000 + 2%), which is lower than the current market value, the adjusted factored base year value would be reinstated and enrolled, and the annual increase will again be limited to two percent.

Yes. All real property qualifies, including orchards, commercial or industrial buildings, refineries, etc.

Yes, under Proposition 13, base year values may not be increased more than two percent per year. However, this two percent limitation applies only to increases in the base year value. Under section 51 of the Revenue and Taxation Code, Proposition 8 values are not considered base year values, but are declines in value; thus a property assessed under Proposition 8 is not restricted to the maximum two percent increase. Once the market value increases and is equal to or greater than the factored base year value (adjusted annually for inflation), then the factored base year value is restored and the annual increase will again be limited to two percent.

When real estate values increase due to market conditions, the assessor must assess properties to either their original base year values, adjusted for inflation up to two percent, or to their current market values, whichever is lower. This may result in increases to Proposition 8 values in excess of two percent from one lien date to the next. For example, in a situation where a property's value increased 10 percent since the prior lien date, but the value is still below the Proposition 13 adjusted base year value, the new increased Proposition 8 value will be enrolled.

A property sold with features that are similar to your property is a comparable sale. Comparable sales information helps you analyze the value of your home. For example, a property similar in location, zoning, size, number of bedrooms and bathrooms, age, quality and condition to yours that sold in the "open" market is a comparable sale. However, not all of these factors must be the same as your property to be a comparable sale – "similar" does not mean "identical." An "open" market means the transaction must have been offered for sale under typical market conditions; thus, a sale to a relative or a sale under distress may or may not have been sold under open market conditions. If using such sales, further investigation is required to determine if any unusual or favorable conditions were involved.

Providing newspaper articles or other reports indicating that values have declined are not sufficient justification for a reduction in value on your property. You should provide a minimum of two comparable sales if your county assessor requires it.

Any relevant evidence may be admitted if it is the customary method in which a property is appraised.

Proposition 8 reassessments last at least one year; the value reductions are not permanent. The assessed value may either decrease or increase depending on the market value of your property on January 1 of each subsequent year. Your assessed value, however, will never result in an increased value that is more than the trended base year value. Once the market value of a Proposition 8 property exceeds its Proposition 13 factored base year value, the Proposition 13 value will be reinstated as the upper limit of assessed valuation.

Please note that your factored base year value continues to increase by an annual inflation factor of no more than two percent each year even during the time your property is assessed under Proposition 8.

If you disagree with the county assessor's findings, you may file a formal appeal with the County Assessment Appeals Board or the County Board of Equalization. These Boards are independent bodies established to resolve differences in property value opinions between the county assessor and property owners. You must file your appeal on an Application for Changed Assessment between July 2 and either September 15 or November 30 of the fiscal year that you are disputing.

  a) What value will be used to determine the assessed value for the first year after purchase?
  b) What value will be used to determine the assessed value for subsequent years?

a) As section 50 governs the value to be placed on the roll for the first lien date following a change in ownership, each of your fractional interest will be treated separately to determine whether the base year value or current market value is the lower amount:

Base year value #1:	$70,000 x 1.02 factor	= $ 71,400
+ fair market value on your interest (Base year value #2)		= $ 90,000
Total base year value first year after purchase		= $161,400

Since this value is lower than the current market value (assuming that the current market value has in fact declined to $180,000), the factored base year value of $161,400 will be enrolled as the first year's assessment.

b) Section 51 governs the taxable value for all subsequent assessment years. The market value of your property will be based upon the value of the entire appraisal unit as it is bought and sold in the market. For the next fiscal year, the factored base year value would be $173,400 ($170,000 x 1.02 = $173,400). Assuming the market value has not changed, the current market value of the entire property is $180,000, thus, the factored base year value should be enrolled since it is the lower value.

A Proposition 8 reduction in assessed value is only 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 at which time the factored base year value will be reinstated.

Unless there is a change in ownership or new construction, this increase in value cannot exceed the original assessed value (base year value) plus the annual inflationary factor not to exceed two percent per year.

Any owner of real California property whose assessed value is greater then the properties current market value can save money by lowering their property taxes. Chances are if you bought property within the past few years the purchase price was used as the assessed value and if market values have dropped in your area, you can save with Prop 8.

No. Single family, 2nd home, non-owner occupied, land, commercial, industrial, investment, agricultural, mixed use, condo, town home, patio home, etc. All owners of real property in California that pay property tax can save with Prop 8.

No. You are not getting a new mortgage. Prop 8 has nothing to do with your mortgage and even property owners that own their properties free and clear can save money by lowering their property taxes.

Maybe. Appraisals for mortgage and refinance are sometimes abbreviated reports that do not always contain the best admissible data needed or accepted by the county.

No, the assessed value and appraised value are not directly related. Take advantage of the declining real estate market today and let Prop8.ORG help you save while you still can.

No. Filing for a reduction does not affect other real estate tax exemptions. Existing benefits will continue, and your eligibility for new benefits is not compromised.

No. It does not matter if you have good or bad credit, your income and assets are not considered. All property owners whose assessed values are higher then their fair market values can save with prop 8.

Yes, property owners with impound accounts can still save money by lowering your property taxes. Once the assessor agrees to reduce your property taxes, simply submit the county paperwork showing your new lower property tax amount to whomever you pay your mortgage payment to. Your mortgage service provider will then adjust your monthly payment accordingly resulting in lower monthly payments.

The assessor is required to review the temporary Prop 8 value each lien date following the initial reduction. The Prop 8 value can be further reduced or increased depending on the propertys market value as of the lien date. 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 Prop 8 the next years value will automatically be reviewed. A Notification of Assessed Value will be sent in July, which will indicate the findings.

Once a property value has been lowered under Prop 8, the next years assessed value will be automatically reviewed by the county. The lower of current market value and Factored-Base-Year Value will be enrolled. Your property taxes could continue to go down without ever having to file another appeal.

The 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, the increase in value cannot exceed the original assessed value plus the annual inflationary factor not to exceed 2 Percent per year. You will never have to pay more in property taxes than legally required by law.

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.

That is ok! We can still get you a reduction.

Yes. You or anyone you appoint as your agent can file a tax appeal on your behalf.

Yes. All real property qualifies.

A property sold with features that are similar to your property is a comparable sale. Comparable sales information helps you analyze the value of your home. For example, a property similar in location, zoning, size, number of bedrooms and bathrooms, age, quality and condition to yours that sold in the open market is a comparable sale.

Proposition 8 reassessments are not permanent, but last at least one year. The assessed value may decrease or increase depending on the market value of your property on January 1 of each subsequent year. Your assessed value will never increase more than the trended base value. It is important to remember, however, that base year values suspended by Proposition 8 reassessment values continue to increase by an annual inflation factor of no more than 2% per year.

Sales of comparable properties may be anytime prior to the date of your value, but those closest in time are the best indicators of value. However, an appeals board may not consider comparable sales that have occurred more than 90 days after the date your value was set by the county assessor.

No. Both the county assessor's evidence and your evidence may include oral testimony by an assessor's staff member, you, your agent or attorney, or by an expert witness or other witness. Submission of a formal appraisal or any other written material (for example, a Realtor's opinion of value or an engineering study) is allowed; however, the person who prepared the report must be present at the hearing to respond to any questions the appeal board members or county assessor may have about the information. Depositions are not admissible and will not be considered by the appeals board.

Any relevant evidence may be admitted if it is a customary method in which a property is appraised. You may use the income approach or the replacement cost approach if they are considered the most appropriate method of valuation for your property.

The only evidence that an appeals board can consider is the evidence that you and the assessor present at your hearing. The board may not consider any information, documents, or correspondence, either verbally or written, that you previously submitted to the assessor, or that the assessor previously presented to you, prior to filing for an appeal, or any information attached to your application unless you also present that evidence at your appeals hearing. The outcome of your hearing will be determined only by the evidence presented at the hearing.

You should be prepared to present evidence to prove that the value you are requesting is correct. The burden of proof lies with the assessor's office to establish that their opinion of value is correct under the following situations:

• Appeals of an owner-occupied single-family dwelling
• Non-enrollment of purchase prices (provided a change in ownership statement was timely filed by you)
• Requests by the assessor to enroll a higher assessed value than what is currently on the roll
• Escape assessments, when it is not due to you failure to file a change of ownership or business property statement or permits for new construction
• Penalty assessments

In all other situations, the applicant has the burden of proving that the property has not been correctly assessed and must be the first to present the evidence at the hearing.

It will vary from county to county and on their workload. Most appeals are scheduled within four to eighteen months. However, the law allows up to two years for an Application for Changed Assessment to be resolved. Notice of the hearing date will be mailed to you at least 45 days prior to the date of your hearing.

Your application will be denied for nonappearance and your appeal will be considered closed if you or your representative missed your hearing date. No further action will be taken on your appeal and a notice of denial will be mailed to you. However, if you believe you had a good reason for not appearing at your hearing, you may request a reinstatement hearing before the appeals board. You must file a written request with the appeals board within 60 days from the date of mailing of the notification of the denial for nonappearance. Such requests are granted only if extraordinary circumstances caused you to miss the hearing.

If this unusual circumstance occurs, your opinion of value may temporarily become the taxable value of your property by default until the appeals board hears and decides your case. If, after the hearing, increased or escaped taxes are warranted, they will not apply during the time in which the board failed to act. There are some exceptions to this rule, so you should contact your clerk of the board for more details.

Yes, unless you, the county assessor, and county legal officer have signed a stipulation agreeing to the new value.

A stipulation is a written agreement signed by the county assessor, county legal officer, and you or your agent when the value of your property is agreed upon after the Application for Changed Assessment has been filed, but prior to the hearing. The stipulation sets forth the full value and assessed value of the property and sets forth the facts upon which the reduction in value is premised. Please contact your county assessor for more details on stipulations.

The county appeals board will either advise you of their decision at the conclusion of the hearing, or you will be notified of their decision by mail at a later date. Depending upon the county and their workload and the complexity of your appeal, your notification may take up to several months.

No. The decision of the appeals board is final. A challenge of the board's decision must be filed in superior court of your county within six months of the decision on your application.

You may submit your request to the clerk of the board at the time of the filing of the application, or it may be submitted to the county assessor and the clerk of the board at any time 30 days before the scheduled hearing date. Some counties have a specific form to request an exchange of information, while others only require the request be written. Check with the clerk of the board for your county's procedures.

Yes. It is within the law for an appeals board to decide to continue an appeal, even though the county assessor and you may have agreed to withdraw the appeal.

No. You must file a separate application for each parcel.

Yes, an appeal may be filed by an applicant who is the:

• Owner
• Owner's spouse, parents, or children
• Person directly responsible for the payment of the property taxes
• Authorizedagent, such as an attorney, professional tax agent, or real estate agent.

The applicant must sign and submit with the application a written authorization if the claim is filed by an agent other than a California licensed attorney. The authorization may be indicated in section 2 of the Application or on a form provided by the clerk of the board or on a separate authorization statement

No, based on the type of appeal you are filing, applications may only be accepted during a specific time period. You should review a copy of Publication 30, Residential Property Assessment Appeals, to get a better understanding of the appeals filing periods.

• Lien Date Appeal / Decline in Value - The filing periods for a lien date appeal (where the value of your property was on the roll on January 1) are from July 2 to September 15, or July 2 to November 30, depending upon the county in which you are located. Please check the filing deadline for the county in which your property is located or contact your clerk of the board.
• Base Year Value / Supplemental and Escape Assessments - If you are appealing the value based on a notice sent to you because your property had a change of ownership or new construction, you must file within 60 days of the mailing of the supplemental assessment notice. If no notice was sent to you, you must file within 60 days of the supplemental tax bill.
• Calamity Reassessment Appeals: If you disagree with the value stated on a reassessment notice sent to you because your property was damaged due to a natural disaster or other calamity, you must file within six months of the mailing of the notice

No. You may revise the opinion of value stated on your application at any time up to or during your appeals hearing without submitting a new application. Additionally, you may present testimony and other evidence at the hearing to support a value that is different from what was stated on the application.

Requests for written findings of facts may only be submitted to the clerk of the board prior to the hearing. However, if you later decide not to pursue your appeal to the superior court, you may cancel your request for the written findings of facts at the conclusion of the hearing and your deposit will be returned.

If your assessment is reduced after your hearing and your application has been designated to also serve as a claim for a refund, the county will automatically process a refund for you. However, if your application has not been designated to serve as a claim for refund and you are successful at the appeals hearing, you will be required to submit a separate 'claim for refund' form with the county board of supervisors.

A disadvantage of having your application also serve as a claim for refund is that it may shorten your time to make a decision regarding whether to pursue your claim in superior court when the outcome of your appeal is not in your favor. If the application is also your claim for refund, you must file your claim in superior court within six months of the date of the appeals board's decision. If your application is not being designated as claim for refund, you will have six months from the appeals board's decision to file a claim for refund with the county board of supervisors. Then, you will have six months from the time the board of supervisors denies your claim for refund to file your claim in superior court.

	When appeals board decision is in your favor	When appeals board decision is not in your favor
Application designated to also serve as a claim for refund	County automatically process refund	If taxpayer still wishes to pursue a claim, claim for refund must be filed in superior court within 6 months of the appeals board decision
Application not designated to also serve as a claim for refund	Taxpayer required to file a separate 'claim for refund' with county board of supervisors	Taxpayer has 6 months to file a claim for refund with county board of supervisors, then if board denies claim, taxpayer has 6 months after that to file claim in superior court.

Yes. A fee will be imposed by the county to cover the expense of preparing findings and conclusions. The cost varies from county to county, either on a per application/parcel basis or on an hourly basis, and also may depend upon the type of property being appealed. The estimated fee must be paid prior to the end of the hearing, and any cost for the findings that exceed the initial deposit must be paid before findings are released. At the end of the hearing, but before the board renders a decision, the requesting party may withdraw the request for findings and any fees paid will be refunded. At that time, the other party may orally or in writing renew the request and pay the cost of the findings preparation.

Generally, no, but it is at the appeals board's discretion to grant or deny a request for findings made after the hearing.

A transcript or a tape recording of a hearing is a complete written or audio recording of the entire hearing that is available at the requestor's expense. Requests for a transcript or recording may be made at any time, but not later than 60 days after the board's decision. You should contact the clerk of the board to determine the fee for requesting a transcript of your hearing.