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Proposition 8 Qualifying Examples

Example 1

  • I purchased my home in the early 1990s
  • The total assessed value on my 2007-08 property tax bill is $388,082.
  • The market value of my property on January 1, 2008, was $640,000.

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

Example 2

  • I purchased my home in July 2004 for $500,000.
  • The total assessed value on my 2007-08 property tax bill is $520,200
  • Sales of similar model homes in September through December 2007 were $475,000

Your property in this example may qualify for Proposition 8 relief, as the sales of comparable properties indicate that the market value on January 1, 2008, is lower than the assessed value.

Example 3

  • I purchased my home in September 2006 for $600,000
  • The total assessed value on my 2007-08 property tax bill is $600,000.
  • Sales of similar model homes in January through March 2007 were $600,000.
  • Sales in September and October of 2007 were $570,000 and current listings for sale are even lower.

Your property in this example does not qualify for Proposition 8 relief for the 2007-08 tax year, as the assessed value is not lower than the market value on January 1, 2007. However, you may qualify for Proposition 8 relief next tax year 2008-09, if the market value on January 1, 2008, is lower than the assessed value as the recent sales may indicate.