Property Owners Guide to Proposition 8

Values
$1,100,000
$1,050,000
$1,000,000
$950,000
$900,000
$850,000
$800,000
$750,000
$700,000
$650,000
$600,000
RED DASHED LINE = Market Value
Green Values = PROP 8 VALUES
BLUE LINE = PROP 13 VALUES
$800,000
$800,000
$875,000
$816,000 $832,320
$700,000
$848,966
$725,000
$865,946
$775,000
$883,265
$850,000
$1,000,000
$900,930
1 2 3 4 5 6 7
Years
Year 1 - $800,000 market value
enrolled as the Prop.13 base value due
to a change of ownership.
Year 2 - Even though the market
value of the house increased to
$875,000 in the second year, the
assessed value is $816,000 ($800,000
plus the 2% increase allowed under Prop
13).
Years 3 - 6 – The property experiences
a decline in value. Prop 8 values of
$700,000, $725,000, $775,000, and
$850,000 are respectively enrolled.
Year 7 – The factored Prop. 13
value of $900,930 is reinstated as the
assessed value. Though the market
value is at $1,000,000, the Assessor
may only enroll the original base value
($800,000) plus 2% for every year after
the base year was established.
6
June 2020