What taxpayer protections are provided by Proposition 13?
A. Under the tax-cut measure, the property tax rate is set at a uniform 1% throughout the state, and property tax increases are limited to no more than 2% a year as long as the property is not sold. Once sold, the property is reassessed at 1% of the new market value (usually the sales price) with the same 2% cap on annual tax increases. As a result, new buyers are always aware of what their taxes will be and know the maximum amount property taxes can increase each year for as long as they own the property. Proposition 13 also requires that all state tax increases be approved by a two-thirds vote of the Legislature, and that new or increased local taxes be approved by a vote of the people.
