Decline-in-Value (Proposition 8) Review

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

Decline in Value Frequently Asked Questions

Complete a decline-in-value review application during the filing period July 2 through December 31.  Include any supporting information such as appraisals, comparables sales, or listing data to help the Assessor evaluate your property.

No.  Our professional appraisal staff can review your assessment and discuss your property’s value with you.

The filing period runs July 2nd through December 31st each year.

Proposition 8 reductions are temporary.  The Assessor reviews your property each year and updates the assessed value based on the current market.  The value may increase or decrease from year to year but will never exceed the factored base year (Proposition 13) value.

No.  Once your property is in decline-in-value status, the Assessor reviews it annually until the value returns to the base year level.  Annual decline-in-value notices are posted online July 1.  If you believe the new values are still too high, you may submit another Decline-in-Value Review Request for further consideration.

No. Only the most recent January 1st assessment may be reviewed. Proposition 8 does not allow for relief for prior years and does not apply to supplemental assessments.

No. You must pay your property taxes on time to avoid penalties and interest.  If a reduction is approved, a corrected tax bill or refund will be issued.

If the review is not completed before the deadline, you may file an Assessment Appeal application with the Clerk of the Board’s Office to protect your rights to a formal review.

No.  The Assessor’s Office reviews Decline in Value requests are FREE.  The process is straightforward and there is no advantage to hiring a private company to file for you.