What is the property tax cap?

The property tax cap is a law in California that limits how much property taxes a person, organization, or business can pay on certain types of property. The idea behind the property tax cap is to make sure that people who own similar properties pay similar taxes. Under the property tax cap, all taxable real estate in California is assessed at a maximum rate of 1% of its total market value, with some exceptions. For example, business and corporate properties may have a higher assessment rate. In addition, the property tax cap also limits how much taxes can be increased annually. Property tax increases in California cannot exceed 2% each year. This cap helps to ensure that property taxes do not go up too much each year. It also helps to protect people and businesses from sudden spikes in taxes that may not be affordable. The property tax cap also helps to foster economic stability in California by ensuring that property owners do not face large, yearly tax hikes. Additionally, the cap helps California’s local governments to receive more secure, predictable sources of revenue.

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What is the property tax cap?

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