finance
Proposition 13 (California)
A 1978 California constitutional amendment (Article XIII A) that replaced market-value reassessment with acquisition-value taxation. The general property tax is capped at 1% of full cash value, plus voter-approved bonded debt. Property is assessed at its 1975-76 value or its value at a later change in ownership or new construction (the base-year value), which may rise with inflation by no more than 2% per year. Only new construction, not the existing structure, is reassessed when improvements are added.
- Exam tip
- 'One percent, two percent, and seventy-five to start.' Proposition 8 allows a temporary lower assessment when market value falls below the factored base-year value.
- Example
- A home bought in 2022 for $1,000,000 grows at the 2% cap to $1,061,208 by 2025, so the 1% general tax is $10,612.08 before bonds and special assessments.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23