Taxation
Proposition 13
A concise definition for the California Real Estate Exam study guide.
Definition
Limits California property tax rate to 1% of assessed value. Annual assessment increases capped at 2% unless there is a change of ownership or new construction. Passed in 1978.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 14: Taxation, Licensing & DRE Regulation →