County of Humboldt - Assessor's Office

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Property Value Reviews for Decline in Market Value

If you have evidence that your property is being taxed on a value that is higher than its current market value, you can fill out the 2014-2015 Informal Request for Decline in Market Value (Prop 8 Review) form. Signed forms can be mailed or faxed to (707) 445-7410.

Proposition 8

Proposition 8, passed in November 1978, amended Proposition 13 to recognize declines in value for property tax purposes. Prop 8 decline in market value assessments, are TEMPORARY reductions that recognize the fact that the market value of a property as of the January 1 lien date has fallen below its Prop 13 factored value. The Revenue & Taxation Code authorizes the Assessor to annually enroll either the property’s Proposition 13 factored base year value, or its market value as of January 1st, whichever is less.

Once a Prop 8 reduced value has been enrolled, that property’s value must be reviewed each year as of the January 1st lien date, to determine whether its market value continues to be less than its Prop 13 factored value. Prop 8 values can change from year to year as the market fluctuates. When the market value of the property increases above its Prop 13 factored value, the Assessor will once again enroll its Prop 13 factored value. In no case may a value higher than a property’s Prop 13 factored value be enrolled.

Properties enrolled under Prop 8 provisions are not subject to the 2% annual increase limitation that applies to those enrolled under Prop 13 provisions.

Steps

A property owner provides Assessor with facts or evidence that they feel justify a reduction in value and requests a review of the property’s value or the Assessor may initiate the review if the reduction is discovered independently.

Appraisal staff reviews the property owner’s comparable sales and other market data, estimates the property’s market value as of January 1st and then compares this market value to the property’s current Prop 13 factored base year value.

If the January 1 market value is below factored Prop 13 value, then:

  • Assessed value is lowered to market value for next fiscal year.
  • Owner is notified of reduced value.
  • New tax bill is based on lower value for next fiscal year.
  • The following year, Assessor repeats process and enrolls the January 1 market value at that time or Prop 13 factored value, whichever is lower.

If January 1 market value is higher than factored Prop 13 value, then:

  • No change in assessed value is made, and
  • Owner is notified that value will not be reduced.
  • If owner still feels value should be reduced, then owner may file an assessment appeal with the Assessment Appeals Board, from July 2nd - Nov 30th each year.
  • Appeals Board hears evidence from owner and Assessor; the Board then determines proper assessed value.
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