FAQs



  1. Who can qualify for tax savings under Prop 8?
    Any owner of real California property whose assessed value is greater then the properties current market value can save money by lowering their property taxes. Chances are if you bought property within the past few years the purchase price was used as the assessed value and if market values have dropped in your area, you can save with Prop 8.

  2. What does Prop 8 say?
    Proposition 8 (AKA Revenue and Taxation Code Section 51) requires the county assessor to enroll the lower of either the property's Factored-Base-Year Value (assessed value established under Prop 13) or its market value as of the lien date (Prop 8 value).

  3. Does Prop 8 only benefit owner-occupied properties?
    No. Single family, 2nd home, non-owner occupied, land, commercial, industrial, investment, agricultural, mixed use, condo, town home, patio home, etc. All owners of real property in California that pay property tax can save with Prop 8.

  4. Do I have to refinance to lower my property taxes with Prop 8?
    No. You are not getting a new mortgage. Prop 8 has nothing to do with your mortgage and even property owners that own their properties free and clear can save money by lowering their property taxes.

  5. Can the appraisal I got when I refinanced be used for property tax reduction?
    Maybe. Appraisals for mortgage and refinance are sometimes abbreviated reports that do not always contain the best admissible data needed or accepted by the county.

  6. Will I need to pay for an appraisal to save with Prop 8?
    No. Prop8Pros provides you with everything you need to file all of the paperwork yourself or become your agent of service and take care of everything on your behalf.

  7. Should I wait to save with Prop 8 until after I refinance?
    No, the assessed value and appraised value are not directly related. Take advantage of the declining real estate market today and let Prop8pros help you save while you still can.

  8. Will filing for a reduction affect my exemptions?
    No. Filing for a reduction does not affect other real estate tax exemptions. Existing benefits will continue, and your eligibility for new benefits is not compromised.

  9. Is my credit used to qualify for property tax savings?
    No. It does not matter if you have good or bad credit, your income and assets are not considered. All property owners whose assessed values are higher then their fair market values can save with prop 8.

  10. My property taxes are paid in my monthly house payment (Impound / Escrow account). Can I still save with Prop 8?
    Yes, property owners with impound accounts can still save money by lowering your property taxes. Once the assessor agrees to reduce your property taxes, simply submit the county paperwork showing your new lower property tax amount to whomever you pay your mortgage payment to. Your mortgage service provider will then adjust your monthly payment accordingly resulting in lower monthly payments.

  11. How can the assessed value of a property be changed after it is reduced?
    The assessor is required to review the temporary Prop 8 value each lien date following the initial reduction. The Prop 8 value can be further reduced or increased depending on the property's market value as of the lien date. Just as there is no limit on the amount of reduction, there is no limit to the amount being restored to the Factored-Base-Year Value.

  12. Is the Assessor required to restore the factored-base-year value even if it is more than a 2% increase?
    Yes, just as there is no limit to the amount of reduction when arriving at market value, there is no limit to the amount being restored when market value increases, up to the factored Proposition 13 base year amount.

  13. If granted a reduction for the current year will I have to file another review next year?
    No, once you have been granted a reduction pursuant to Prop 8 the next year's value will automatically be reviewed. A Notification of Assessed Value will be sent in July, which will indicate the findings.

  14. Why isn't the reduction under Prop 8 permanent?
    Prop 8 (now California State Revenue and Taxation Code Section 51) requires the Assessor to compare each property's Factored-Base-Year value (Prop 13 value) with the current fair market value (Prop 8 value), and enroll the lesser of the two each and every year.

  15. After receiving a reduction under Prop 8, what will happen if property values continue to decline?
    Once a property value has been lowered under Prop 8, the next year's assessed value will be automatically reviewed by the county. The lower of current market value and Factored-Base-Year Value will be enrolled. Your property taxes could continue to go down without ever having to file another appeal.

  16. After receiving a reduction under Prop 8, what will happen if property values start to rise?
    The 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 or equal to the market value. Unless there is a change in ownership or new construction, the increase in value cannot exceed the original assessed value plus the annual inflationary factor not to exceed 2 Percent per year. You will never have to pay more in property taxes than legally required by law.

  17. My land value looks all right, but my structure value looks high. Can just the structure value be lowered?
    No, the total property value must be considered. Only total assessed value can be compared. The lower of total property current market value and total property assessed value is enrolled.

  18. Am I required to use a service like Prop8Pros to qualify for a reduction in my property taxes?
    The assessor's office does not require the homeowner to use a service to find the correct comparable sales, request a review by correctly completing a Decline-in-Value Reassessment Application form (available on each assessor's website), meet appropriate deadlines and follow up on the appeal process. However, Prop8Pros has found that most homeowners find this process to be daunting at best. We are here to help you successfully submit an appeal so that you maximize your savings while minimizing your risk of denial by the assessor's office. We offer several different levels of assistance based on your unique situation and needs. Choose the best Prop8Pros service that is right for you today by reviewing our Services

Proposition 8 Qualifying Examples
  1. Example 1
    Property purchased in the 1990s
    The total current assessed value on the 2007-08 property tax bill is $388,082.
    The market value of the property on January 1, 2007, is $640,000.

    The property in this example does not qualify for Proposition 8 relief, as the assessed value is lower than the market value. Prop 8 property tax relief generally applies to more recently purchased properties.

  2. Example 2
    Property purchased in September 2006 for $600,000
    The total assessed value on the 2007-08 property tax bill is $600,000.
    Sales of similar properties in January through March 2007 are $600,000.
    Sales in September and October of 2006 were $550,000 and current listings for sale are even lower.

    The property in this example does not qualify for Proposition 8 relief for the 2007-08 tax year because the assessed value is not lower than the market value on January 1, 2007.

  3. Example 3
    Property purchased in July 2005 for $500,000
    The total assessed value on the 2007-08 property tax bill is $510,000
    Sales of similar properties in January through March 2007 are $425,000
    Sales in September and October of 2006 were $570,000 and current listings for sale are even lower.

    The property in this example may qualify for Proposition 8 relief, as the sales of comparable properties indicate that the market value on January 1, 2007, is lower than the assessed value.
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