The "Jarvis/Gann" initiative approved by California voters in 1978 which added Article XIII A to the State Constitution and drastically limited the use of ad valorem property taxes to fund government activities.
A tax limitation initiative approved by the voters in 1978 which provided for (1) a 1% property tax limit (tax rates to repay existing voter-approved bonded indebtedness are excluded from the limit),(2) assessment restrictions establishing 1975 level values for all property, with an allowable increase of 2% annually and reappraisal to current value upon change in ownership and new construction,(3) a two-thirds vote of the electorate for local agencies to impose "special taxes".
Limits the property tax rate to 1 percent plus voter-approved bonded indebtedness, and defines taxable value as the lower of the property's Factored Base Year Value (FBYV) or market value on lien date, January 1. Factored Base Year Value is the market value of the property when it was acquired by the current owner, plus the value of any new construction, plus an inflation factor of no more than 2% per year. Taxable value can increase more than 2% in one year if the property experiences a change in ownership, new construction or received temporary reduction(s) in taxable value in prior tax year(s).
A California referendum limiting the amount of annual property tax increases.
Proposition 13, a 1978 voter approved initiative, substantially changed the taxation of real property in the State of California. Proposition 13 limits the general tax levy to not more than 1% of a property's assessed value. Proposition 13 limits when real property can be reappraised. Proposition 13 also allows for an annual increase in the assessed value of real property based on an inflation factor (not to exceed 2% annually). See page 5.
(Article XIIIA of the California Constitution) Passed in 1978, this proposition enacted sweeping changes to the California property tax system. Under Prop. 13, property taxes cannot exceed 1% of the value of the property and assessed valuations cannot increase by more than 2% per year. Property is subject to reassessment when there is a transfer of ownership or improvements are made. See our Proposition 13 Fact Sheet for more information.