Adopted in June 1978 by the California voters, Proposition 13 substantially changed the taxation of real property. As a result of this Constitutional amendment:
- The maximum amount of property tax cannot exceed 1% of the property's assessed value, plus any bonds or fees approved by the voters.
- Real property can only be reappraised upon a change of ownership or new construction. Business and personal property, including boats, airplanes, and certain restricted properties are subject to annual appraisal.
- The value determined at change of ownership or new construction is increased each year by an inflation index not to exceed 2% per year. This inflation-adjusted value is called the "factored base year value."
- Properties purchase before March 1st, 1975 will have a base year value of the 1975 assessed value.
- For more information go to http://cms.sbcounty.gov/assessor/GeneralInformation/Proposition13Information.aspx
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