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1. What does Decline in Value (Proposition 8, R&T Code Section 51) say?
Revenue and Taxation Code Section 51 requires the assessor to enroll either a property's factored (trended) base year value (established under Proposition 13) or its market value as of the lien date 12:01am January 1st.
This reduction is temporary and the assessor is required to review the market value of the property each lien date after until such time as the factored base year value is less than the market value. When the factored base year value is again enrolled, the property is no longer subject to the annual review, and will continue to be factored (trended) by 2% or less per year.
2. Do properties other than single-family residences qualify?
Yes, all real property types may qualify.
3. How can the assessed value of my property be increased after you reduced it? The assessor is required to review and increase the assessment to either market value or the factored (trended) 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 of increase to market value or to the factored base year value.
4. Is the Assessor required to restore my factored base year value even if it's more than a 2% increase?Yes, The Assessor must enroll current market value or factored base year value, whatever the amount.
5. If I have been granted a reduction for the current year will I have to request another review the following year?No, once you have been granted a "decline in value" reduction under Revenue and Taxation code Section 51 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 determination.
6. What should I do if I disagree with the value placed on my property? If after review of the notification of assessed value you disagree with the assessment, you have until November 30th of that year in which to file an Application for Changed Assessment with the Assessment Appeals Board. (County Board of Equalization)
7. Why isn't the "decline in value" reduction permanent?The statutes and courts have declared "decline in value" reductions under Revenue and Taxation code Section 51 are temporary.
8. What if after having been given a reduction, my value continues to decline? Once a property value has been lowered for Revenue and Taxation code Section 51, your next year's assessed value will be reviewed again. The lower of current market value or factored (trended) base year value will be enrolled.
9. What will happen to my assessment if values start to rise?
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 the current market value.
Unless there is a change in ownership or new construction, during the decline period, the assessment will eventually return to the factored (trended) base year value.
10. My land value looks alright, but my structure value looks high. Can I just have my structure value lowered?No, the total property value is reviewed. Only total factored base year value is compared to total market value.
The lower of total property current market value or total property factored base year value is enrolled.