Let's say you bought a home several years ago for $100,000. The Assessor determined that the purchase price was the fair market value, so the new base year value of the property was set at $100,000.
California Revenue and Taxation Code Section 51(a)(2)
A Proposition 8 reduction is a form of assessment relief. It may be applied by the Assessor when a property's assessed value exceeds the current market value. By the end of June all Santa Clara County property owners receive notification of their assessed value.
The Assessor’s Office provides these and many other services, free of charge, and often through a simple, on-line application process. Contact the Assessor’s Office before signing a contract or sending money.
Proposition 13 established the concepts of a base year value for property tax assessments, and limitations on the tax rate and assessment increase for real property. Passed by voters in June 1978, Prop 13 is an amendment to the California Constitution