Property Tax Relief – Decline in Value

If your property’s market value falls below its assessed value, it may qualify for a temporary reduction under Proposition 8.

Real property will only benefit from a lower assessment when its market value falls below the current fully factored base year value (assessed value). A property that has been reassessed under Proposition 8 is reviewed annually by the Assessor to determine its lien date (January 1) value. The assessed value, of a property with a temporarily reduced (Proposition 8) value in place, may increase each lien date (January 1) by more than the standard two percent maximum allowed for properties assessed under Proposition 13; however, unless there is a change in ownership or new construction, a property’s assessed value can never increase above its factored base year value after adjusting for the annual increase not to exceed two percent annually under Proposition 13. The assessed value remains at a reduced assessed value until the property’s market value exceeds its factored base year value on lien date (January 1). At that point, the factored base year value is reinstated.

Each year, the Assessor reviews your property’s value as of January 1 (called the lien date). If the market value is still lower than your factored base year value, your reduced assessment continues.

Your assessed value can go up more than the usual 2% limit if your property is under a temporary decline. But it can never go above your original base year value, adjusted for inflation by no more than 2% per year, unless you sell or build new construction.

If your property’s market value rises above the factored base year value, the original value is reinstated. Until then, your assessment stays at the lower value.

Under Proposition 13, factored base year values may not be increased more than two percent per year. However, this two percent limitation applies only to increases in the base year value. Under California Revenue and Taxation Code Section 51, temporarily reduced values are not considered base year values, but are declines in value; thus a property assessed under Proposition 8 is not restricted to the maximum two percent increase. When real estate values increase due to market conditions, the assessor must assess properties to either their original base year values, adjusted for inflation up to two percent per year, or to their current market values, whichever is lower. This may result in increases to temporarily reduced assessed values in excess of two percent from one lien date (January 1) to the next.

At the end of June, if your property is in a temporary decline status, the Assessor will send you an Assessment Value Notice. This tells you what your assessed value will be for the next tax year.

If you disagree with the new value, you may file an appeal with the Assessment Appeals Board. The deadline to file is November 30.

Yes, when in temporary decline. When your property is in temporary decline status, the 2% limit doesn’t apply to those reduced values. The Assessor must review current market conditions each year and adjust accordingly.

You’ll never be taxed on more than the lower of the two values: the adjusted base year value or the current market value.

Yes. If you already paid your property tax and the Assessor reduces your assessed value, you’ll get a refund from the Marin County Department of Finance.

Refunds usually arrive within 1 to 2 months after you get the reduction letter. If it takes longer, contact us at:

• Phone: 415-473-7215 (CA Relay 711).
• Email: Assessor's staff.

Include your name, mailing address, parcel number, and the amount of the reduction.