When the real estate market is going down like it is now and has gone below your assessed value, you are allowed a break in your property taxes. Prop 8 is an exemption to California Property Tax Law which determines all property taxes today for property owners in California. Prop 13 was enacted in 1978 to limit the property taxes paid by property owners. Prop 8 Decline in Value is an exemption to Prop 13 which says that your property tax value should not be higher than the current market value.
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