In 1978, California voters passed Proposition 8, a constitutional amendment that allows for a temporary reduction in a property’s assessed value when the property experiences a decline in market value.

A decline-in-value occurs when the market value of your property on January 1 (the lien date) is less than its factored base year value (Prop 13 value).

If your property qualifies, the Assessor will temporarily reduce the assessed value to reflect the lower market value.

Important to Know

  • A Prop 8 reduction is temporary.
  • Market values change from year to year.  Your property will receive a reduced assessment only if the market value drops below its factored base year value (Prop 13 value)  as of January 1st. 
  • Once your property receives a reduction, the Assessor will review each year to determine if the market value has increased, decreased, or remained the same.  Annual reviews of market value will continue until the base year value (Prop 13 value) is restored.
  • From year to year, the assessed value of properties in a decline-in-value status may increase by more than 2% in one year, but will never exceed its factored base year value (Prop 13 value).
  • Assessed values for the upcoming tax year are available online beginning July 1st.

How to File a Decline-in-Value Review Application

Claim forms are available during the decline-in-value filing period of July 2 through December 31 each year. Please select the form that best matches your property type.

  • Residential
  • Multi-Family
  • Commercial
  • Commercial Lodging (hotel/motel)

Completed applications may be:

Returned to our office in person, by mail, or by email to assessor@santacruzcountyca.gov