What if after having been given a reduction, property values continue to decline?
Once a property value has been lowered for Prop 8, the next year’s assessed value will be automatically reviewed. The lower of current market value and Factored-Base-Year Value will be enrolled. • What will happen to the assessment if values start to rise? The taxable value reduction to market value is temporary. 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 then or equal to the current market value. Unless there is a change in ownership or new construction, this increase in value cannot exceed the original assessed value plus the annual inflationary factor not to exceed 2 Percent per year.
Related Questions
- Considering the downturn in commercial property, lower rental returns and thus reduction in asset values, is 18.17% invested into commercial property too high?
- After receiving a reduction under Prop 8, what will happen if property values continue to decline?
- What if after having been given a reduction, property values continue to decline?
