Proposition 13
Questions and Answers
Under State law (Proposition 13, June, 1978), real property is reappraised only when a change-in-ownership occurs, or upon
completion of new construction. Except for these two instances, property assessments cannot be increased by more than 2%
annually, based on the California Consumer Price Index. The property tax rate is 1%, plus any bonds, fees or special charges. For
additional information, please contact the Assessor’s Office at (858) 505-6262.
Q How was real property assessed before Proposition 13 was enacted in this state?
A Prior to the passage of Proposition 13, real property was appraised annually at its current market value, and there was no
limitation on the tax rate that counties could apply.
Q How is new construction reported to the Assessor’s Office?
A All the cities and the County must notify the Assessor’s Office when ever building permits are issued. The Assessor’s Office
also receives information about new construction from other sources.
Q Will all building permits cause a reappraisal?
A No. If the building permit is for repair, replacement or maintenance, the value of the property will not be increased for tax
purposes. However, if a bath, kitchen, or entire house is completely remodeled, the value will be added to the current
assessment.
Q When I build a room addition, is my entire property reassessed?
A No. Only the value added of the new construction will increase the current assessment. For example, if you build a family
room, only the value added of the new construction will be added to your current assessment. The existing home will not
be reassessed for tax purposes.
Q What is a change in ownership for property tax purposes?
A A change in ownership occurs whenever any interest in real property is sold or transferred. The County Recorder then reports
these sales and transfers to the Assessor’s Office.
Q Will most changes in ownership cause a reappraisal?
A Yes. The only exceptions are transfers between husband and wife, and transfers between a parent and child. All other
transfers, even among family members such as siblings, are reassessed.
Q If I refinance my house, will the property be reappraised?
A No. Refinancing or the creation of a trust deed will not cause a reappraisal as long as there has been no change of title.
Q Will a reappraisal be required when property is placed in a trust?
A No. In this method of holding title, there is only a reassessment if there has been a change of beneficial interest or control.
Revocable trusts such as living trusts are not reassessed.
Q If a corporation changes ownership, is a reappraisal required?
A Yes. Under this method of ownership, a reassessment occurs when there is a change in the controlling interest of a
corporation. A controlling interest is defined as an interest greater than 50%.
Q Can the assessed value of my property be decreased?
A Yes. The assessed value of property can be decreased when ever damage occurs such as fire, or when structures are
removed. State law (Proposition 8, Temporary Reduction of Assessed Value For Property Tax Purposes, passed in 1979)
also allows property values to be reduced if there is a decline in market values below the current assessed value.
McMillin Realty
2315 Otay Lakes Rd suite #306
Chula Vista , CA 91915
GREGORY J. SMITH
SAN DIEGO COUNTY ASSESSOR
1600 PACIFIC HIGHWAY, ROOM 103
SAN DIEGO, CALIFORNIA 92101-2480
TELEPHONE (858) 505-6262
TEMPORARY REDUCTION OF ASSESSED VALUE FOR PROPERTY TAX PURPOSES
(Section 51(a), Revenue and Taxation Code - Proposition 8)
Proposition 8 (which was passed by the voters in June, 1979) allows a temporary reduction in
property tax assessments. Basically this proposition states that if the market value on January
1 of any current year falls below the assessed value (as shown on your property tax bill), the
Assessor’s Office must temporarily lower the assessment to reflect market conditions.
In practical terms, and with the history of real estate appreciation, most assessed values in San
Diego County are well below market value. Normally, only recently purchased properties that
have subsequently declined in value may be eligible for this temporary reduction in value under
Proposition 8.
Property owners who believe that the market value of their property is less than their current
assessment should contact the Assessor’s Office for a review. If supported by a decline in recent
sale prices, the assessed valuation will be lowered to reflect current market conditions.
The Assessor’s Office will then review the subject property on an annual basis each
January 1st. When the market has "turned around" and the value has increased, the assessment
of the property will also be increased (plus the annual 2% inflation factor mandated by
Proposition 13). Under no circumstances, however, can this increase in value exceed the
original assessed value (plus the 2% inflationary factor compounded).
In conclusion, Proposition 8 allows the Assessor’s Office to provide necessary relief to owners
whose property values have declined, while still retaining the ability to review and increase those
values when market conditions improve. For additional information, please call the Assessor’s
Office at (858) 505-6262.
GREGORY J. SMITH
SAN DIEGO COUNTY ASSESSOR
1600 PACIFIC HIGHWAY, ROOM 103
SAN DIEGO CALIFORNIA 92101-2480
TELEPHONE (858) 505-6262
APPLICATION FOR REVIEW OF ASSESSMENT
Under State law, (Proposition 8), if the current market value of your property falls below the assessed or taxable value
as shown on your tax bill, the Assessor’s Office is required to temporarily lower the assessment. This type of
property tax relief generally applies to more recently purchased properties. If you feel you qualify for this reduction,
please file this form with the Assessor’s Office between Jan. 1st and June 1st . Please indicate your opinion of value
by providing supporting documentation, such as sales of comparable properties or a recent appraisal.
Our staff will review your application, and notify you of the results in July. If you disagree with the value at that time,
you must file an assessment appeal with the Clerk of the Assessment Appeals Board between July 2nd and November
30th. The necessary application can be obtained by calling the Clerk’s Office at (619) 531-5777.
Owner: _____________________________________ Parcel Number: ___________________________________
Mailing Address: _____________________________ Address of Property: ______________________________
_____________________________ _______________________________
Value on Current Assessment Roll: ___________________
Owner’s Opinion of Market Value: ___________________
Comparables to Support Owner’s Opinion of Value:
PARCEL NUMBER ADDRESS SALE DATE SALE PRICE SIZE
REMARKS: _____________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
Signature _______________________________________ Date ____________ Telephone __________________
Owner/Agent (Daytime)
Agent Mailing Address: ________________________________________________
________________________________________________
VALREV1 (11/04)