Proposition 8 is a California constitutional amendment passed in 1978 that protects homeowners when property values decline. While Prop 13 limits annual assessment increases to 2%, Prop 8 works the opposite way β it lets the Assessor temporarily reduce your assessed value when your home's current market value drops below your Prop 13 factored base year value.
Here's how it works: Your property is assessed at the lower of either your Prop 13 base year value (adjusted up to 2% per year) or your current market value. When the housing market crashes or your neighborhood sees declining values, Prop 8 automatically kicks in to lower your assessment β and your tax bill.
The key word is "temporary." Once the market recovers and your home's value climbs back above your Prop 13 value, your assessment returns to that Prop 13 baseline. You don't lose your Prop 13 protection, and you don't get a new base year β you just get relief during the downturn.
Proposition 8 can save you hundreds or thousands of dollars during market downturns, but here's the catch: the Assessor is supposed to apply it automatically, but they don't always catch every property. If your neighborhood values have dropped but your assessment hasn't, you might be overpaying.
This matters most during recessions or local market declines. In 2008-2012, many California homeowners qualified for Prop 8 reductions but never got them because they didn't file an appeal. If you think your home's market value is lower than your assessed value, you can file an Assessment Appeal to request a Prop 8 reduction. The deadline varies by county but typically falls between July and November.
Say you bought your California home in 2005 for $500,000 (your Prop 13 base year value). By 2023, with 2% annual increases, your Prop 13 value is around $742,000.
But the housing market tanks in your area, and your home's actual market value drops to $650,000. Under Proposition 8, your assessed value temporarily drops to $650,000 β the lower number. Your property taxes are calculated on $650,000 instead of $742,000, saving you about $920 per year (at a 1% tax rate).
When the market recovers and your home is worth $750,000 again, your assessment returns to your Prop 13 value of $742,000 (plus the ongoing 2% increases). You don't start over β you pick up right where you left off.
No. Prop 8 is temporary relief β your Prop 13 base year value stays intact. Once your market value rises above your Prop 13 value again, you simply return to that baseline. You don't start over or trigger a reassessment.
You qualify if your home's current market value is lower than your Prop 13 factored base year value. Check your Assessment Notice β if recent comparable sales in your area are significantly lower than your assessed value, you likely qualify. You'll need to file an appeal with your county Assessment Appeals Board.
No. Prop 13 limits assessment increases to 2% per year and sets your base value when you buy. Prop 8 allows temporary decreases when market values drop. They work together β Prop 13 protects you from big increases, and Prop 8 protects you during downturns.