||Proposition 13 limits increases in assessed value to no more than 2 percent per year until the property has a change in ownership or any new construction is completed at which time the property must be reassessed. The assessed value is the full cash or market value at the time of the purchase plus the incremental market value of each subsequent new construction. This proposition was approved on June 6, 1978 and took effect as of July 1, 1978.
Although your assessed value may only increase no more than 2 percent per year, the amount of your taxes may increase by a higher percentage for a number of reasons. The tax rate in your area can change as new bonds are added or decrease as bonds are paid off. Direct assessments/special charges can also cause an increase or decrease as they are added or removed. These special charges are added to the tax bill by local districts and cities. A sewer assessment is a typical special charge that is added to the tax bill.