My assessment increased more than 2.5%. Doesn’t Proposition 2 ½ limit the amount my assessment can increase?
Proposition 2 ½ limits the amount of taxes a community can raise from property tax. The assessment is an estimate of market value. Since the real estate market changes are based upon the buyers’ and sellers’ needs, there is no limit to the amount an assessment can increase or decrease. Assessment changes are always based on the real estate market. For example, if a property sells for $500,000 in calendar year 2009, there is no limit or minimum price it would sell for in calendar year 2010 or beyond. It could sell for $600,000, $700,000, $1,000,000 or $400,000. The sale price would be based on the real estate market at that time. The assessments do not predict market value. The assessments reflect (or report) market value.
