Proposition 8 was passed in November 1978 as an amendment to Proposition 13 and implemented as Revenue & Taxation Code Section 51(a)(2). It annually caps the assessed value of property as of the lien date (January 1) at the lesser of its market value or its factored base year value.
HOW IT WORKS
Proposition 8 allows a temporary reduction when the market value of property has fallen below its factored base year value as of the January 1 lien date. Once a Prop 8 reduction has been enrolled, the property’s assessment must be reviewed annually to ensure that the lesser of the market value or the factored base year value is enrolled.
The property’s base year value continues to be factored at a maximum two percent per year, setting its maximum assessed value. As the market recovers the market value of a property will increase based on market conditions which are not restricted to a two percent growth. The value enrolled will follow the market growth rate until the market value exceeds the factored base year value and the lower factored base year is enrolled.
Factored base year value: the value established as of the date of acquisition and/or completion of new construction. This value is adjusted each year by an inflation factor. The inflation factor is the lesser of 2% or the California Consumer Price Index (CCPI) rate.
For more information about factored base year value, see Understanding Proposition 13.
November 16, 2017 -- The median price for a single-family home in the nine-county Bay Area region climbed to $892,720 - up 11.1 percent year-over-year - and eclipsed the prior record of $752,000 set in June 2016, even as short supply drove down the number of homes sold. In May 2015, the Bay Area median was $700,000.
In Santa Clara County, the median was $1,242,500, up 18.6 percent over last year.
May 24, 2017 -- The median price for a previously owned single-family home in the nine-county Bay Area region climbed to $800,000 — an all-time high — and eclipsed the prior record of $752,000 set in June 2016, even as short supply drove down the number of homes sold. In May 2015, the Bay Area median was $700,000.
The price for the typical previously owned home was $1,050,500 in Santa Clara County.