California Proposition 13 and Proposition 8 (1978)

CALIFORNIA PROPOSITION 13

Under Proposition 13, real property is only reappraised when a change- in-ownership occurs, or when new construction or home improvements take place. Generally, these are the only two instances that allow for property assessments to be increased above original assessed value. (Except for these two instances only a 2% of payment increase is allowed annually with inflation.)

CALIFORNIA PROPOSITION 8

Under Proposition 8, the county assessor is required to annually enroll either a property's Proposition 13 value (Factoring in inflation no more than 2% annually), or its current market value if it's less. When a lower market value replaces the Proposition 13 value, this is referred to as the "Prop 8 Value."

The law requires the county assessor to annually reassess all proposition 8 properties and adjust them to the current market value or "Prop 8 Value" upon filing of Appeal for review of assessment.

CALIFORNIA TAX & REVENUE CODE, SECTION 51

Details regarding Proposition 8 can be found In Section 51 of California Revenue and Taxation website. See this link for the full text.