What does Proposition 8 say?
Revenue and Taxation Code Section 51 requires the assessor to enroll the lower of either the property’s Factored-Base-Year Value (established under Proposition 13) or its market value as of the lien date. This reduction 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. When the Factored-Base-Year Value is again enrolled, the property is no longer subject to the annual review, and will receive indexing not to exceed 2% per year.
