Proposition 13 (California)

Proposition 13, passed in 1978, limits California property tax to 1% of assessed value and caps annual increases in that assessed value at 2% — until the property changes hands, when it’s reassessed to market value.

This means long-held homes can be assessed far below market value, while a new buyer’s assessment resets to the purchase price. Appeals in California often hinge on whether market value has fallen below the Prop 13 factored base year value.