14 LOS ANGELES COUNTY OFFICE OF THE ASSESSOR In 1978, California voters passed Proposition 8 allowing for a temporary reduction in an assessed value when a property experiences a decline in value. These temporary reductions are applied when the assessed value is greater than the current market value as of January 1. Under state law, assessors must enroll the lesser of a property’s adjusted base-year value (Prop. 13 value) or its current market value. Conversely, under state law, as market conditions improve and a property’s market value increases, assessors must “restore” the assessed value to the adjusted base-year value. As a result of a strong recovery in the residential real estate market, this year’s decline-in-value review included significantly more restorations of assessed value. DECLINE-IN-VALUE ASSESSMENTS NUMBER OF PROPERTIES WITH REDUCED ASSESSMENTS 450,000 400,000 350,000 250,000 150,000 50,000 0 300,000 200,000 100,000 2006 10,000 7,000 2007 131,000 2008 130,000 2017 100,000 2018 162,000 2016 204,000 2015 259,000 2014 351,000 2009 365,000 2013 393,000 2011 406,000 2012 426,000 2010