Declining Housing Market

In a booming or declining market, a property's SEV will rise or fall with the market, while a property's Taxable Value (TV) will remain at a steady, gradual increase.  This is because the TV is not tied to the market, but rather to the lesser of 5 percent or CPI under the protection of Proposal A.  The gap between SEV and TV has grown over the years.  The SEV is about 14 percent higher than the TV.  Even though the SEV will fall with the market, the CV will still be considerably lower, thus the TV will still be increased by the CPI under the protection of Proposal A.