Upon recieving my property tax information, my SEV assessed value and taxable value (they are equal, our home is only 4 yrs old) have gone down $111,000. I'm fairly sure my taxes will go down, but , as I understand it, Proposal A limits the future increase to the rate of inflation or 5% maximum. So going forward, even though my taxes decreased dramatically, they can only go up based on Proposal A. Correct?
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Yes, your taxes can only go up based on "Proposal A". "Proposal A" states that "Taxable Value" is now the basis for the calculation of property taxes. Increases in Taxable Value (following adjustments for additions or losses) are limited to the
percent of change in the rate of inflation or 5%, whichever is less. “Capped Value” is the value established when the prior year Taxable Value, with adjustments for additions and losses, is multiplied by the Inflation Rate Multiplier (IRM). The multiplier is capped and cannot be greater than 1.05 (1 + 5%). It represents the change in the rate of inflation during the previous year. The final product is Capped Value (CV).
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