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<br />35 <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 AREA” for information regarding historical and pending appeals of <br />assessed valuations by property owners in the Project Area. <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 <br />factors causing a decline in market value. Reductions under this code section may be initiated <br />by the County Assessor or requested by the property owner. <br /> <br />After such reductions in value are implemented, the County Assessor is required to <br />review the property’s market value as of each subsequent lien date and adjust the value of real <br />property to the lesser of its base year value as adjusted by the inflation factor pursuant to Article <br />XIIIA of the California Constitution or its full cash value taking into account reductions in value <br />due to damage, destruction, depreciation, obsolescence, removal of property or other factors <br />causing a decline in value. Reductions made under Proposition 8 to residential properties are <br />normally initiated by the County Assessor but may also be requested by the property owner. <br />Reductions of value for commercial, industrial and other land use types under Proposition 8 are <br />normally initiated by the property owner as an assessment appeal. <br /> <br />After a roll reduction is granted under this code section, the property is reviewed on an <br />annual basis to determine its full cash value and the valuation is adjusted accordingly. This may <br />result in further reductions or in value increases. Such increases must be in accordance with the <br />full cash value of the property and may exceed the maximum annual inflationary growth rate <br />allowed on other properties under Article XIIIA of the State Constitution. Once the property has <br />regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary <br />factor growth rate allowed under Article XIIIA. <br /> <br />For a summary of the recent history of Proposition 8 reductions in the Project Area, see <br />“THE PROJECT AREA – Assessment Appeals.” <br /> <br />Propositions 218 and 26 <br /> <br />On November 5, 1996, California voters approved Proposition 218—Voter Approval for <br />Local Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative <br />Constitutional Amendment. Proposition 218 added Articles XIIIC and XIIID to the State <br />Constitution, imposing certain vote requirements and other limitations on the imposition of new <br />or increased taxes, assessments and property-related fees and charges. On November 2, <br />2010, California voters approved Proposition 26, the “Supermajority Vote to Pass New Taxes <br />and Fees Act.” Proposition 26 amended Article XIIIC of the California Constitution by adding an <br />expansive definition for the term “tax,” which previously was not defined under the California <br />Constitution. <br /> <br />140