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<br />31 <br />Proposition 87 <br /> <br />On November 8, 1988, the voters of the State approved Proposition 87, which amended <br />Article XVI, Section 16 of the State Constitution to provide that property tax revenue attributable <br />to the imposition of taxes on property within a redevelopment project area for the purpose of <br />paying debt service on certain bonded indebtedness issued by a taxing entity (not the Former <br />Agency or the Successor Agency) and approved by the voters of the taxing entity after <br />January 1, 1989 will be allocated solely to the payment of such indebtedness and not to <br />redevelopment agencies. <br /> <br />Appeals of Assessed Values <br /> <br />Pursuant to California law, a property owner may apply for a reduction of the property <br />tax assessment for such owner’s property by filing a written application, in a form prescribed by <br />the State Board of Equalization, with the appropriate county board of equalization or <br />assessment appeals board. <br /> <br />In the County, a property owner desiring to reduce the assessed value of such owner’s <br />property in any one year must submit an application to the County Assessment Appeals Board <br />(the “Appeals Board”). Applications for any tax year must be submitted by September 15 of <br />such tax year. Following a review of each application by the staff of the County Assessor’s <br />Office, the staff makes a recommendation to the Appeals Board on each application which has <br />not been rejected for incompleteness or untimeliness or withdrawn. The Appeals Board holds a <br />hearing and either reduces the assessment or confirms the assessment. The Appeals Board <br />generally is required to determine the outcome of appeals within two years of each appeal’s <br />filing date. Any reduction in the assessment ultimately granted applies only to the year for <br />which application is made and during which the written application is filed. The assessed value <br />increases to its pre-reduction level for fiscal years following the year for which the reduction <br />application is filed. However, if the taxpayer establishes through proof of comparable values <br />that the property continues to be overvalued (known as “ongoing hardship”), the Assessor has <br />the power to grant a reduction not only for the year for which application was originally made, <br />but also for the then current year as well. Appeals for reduction in the “base year” value of an <br />assessment, which generally must be made within three years of the date of change in <br />ownership or completion of new construction that determined the base year, if successful, <br />reduce the assessment for the year in which the appeal is taken and prospectively thereafter. <br />Moreover, in the case of any reduction in any one year of assessed value granted for “ongoing <br />hardship” in the then current year, and also in any cases involving stipulated appeals for prior <br />years relating to base year and personal property assessments, the property tax revenues from <br />which Tax Revenues are derived attributable to such properties will be reduced in the then <br />current year. In practice, such a reduced assessment may remain in effect beyond the year in <br />which it is granted. <br /> <br />See “THE PROJECT AREAS” for information regarding historical and pending appeals <br />of assessed valuations by property owners in the Project Areas. <br /> <br />Proposition 8 <br /> <br />Proposition 8, approved in 1978 (California Revenue and Taxation Code Section 51(b)), <br />provides for the assessment of real property at the lesser of its originally determined (base year) <br />full cash value compounded annually by the inflation factor, or its full cash value as of the lien <br />date, taking into account reductions in value due to damage, destruction, obsolescence or other