So I checked on my parcel information at the county web site to see if my exemption had been applied since I didn't get any response in the mail. I could see that a $5600 exemption had been applied but my property value had been increased. So the net result is a higher taxable value than last year. I wasn't expecting that.

I contacted the county office and the very nice lady explained that under Prop 13 they are allowed to raise property values by 2% each year which explained my increase. I guess no one has really cared for a few years since the property values were going up way more than that. She also explained that I could request (by asking on the phone) Prop 8 which means they will do a market valuation of the property. Whichever is less (Prop 13 or Prop 8) value is what will be used. However I'm too late as this years roll is already closed. So I'm down for 2008 and I should find out July'ish next year. Here's hoping there is a plummet in market value when they do the valuation and a sharp rise afterwards.

Proposition 8 Decline in Value Reassessment Program

Original post California Home Owners Property Tax Exemption