Proposition 13 (California property tax reform)

Proposition 13, passed in California in 1978, limits the amount of property tax increase on a property to 2% annually, based on its purchase price, and caps the total property tax rate at 1% of assessed value. It also restricts annual reassessments to prevent large tax hikes and allows homeowners to transfer property tax assessments between certain family members or upon moving within the state. This law stabilizes property taxes for long-term owners but can create disparities, as newer buyers pay higher taxes based on current market values.