What does Proposition 8 mandate regarding property value assessment?

Proposition 8, passed in California, mandates that assessors are required to enroll the lower of either the property's factored base value or the current market value when the latter is lower due to a decline in the real estate market. This proposition was designed to provide property owners with protection during economic downturns by ensuring that their property assessments reflect market realities rather than simply adhering to previously set values.

The factored base value refers to the assessed value that includes any adjustments for inflation, while the current market value reflects what the property would sell for in the current market conditions. By focusing on the lower value, Proposition 8 ensures that property taxes do not overburden owners during periods when property values have decreased, making it a critical safeguard for taxpayers during economic downturns. This approach helps stabilize property tax revenues while also supporting homeowners who may be facing financial difficulties due to declining property values.