California · Chapter 34 of 59
Property Tax and Proposition Rules
Proposition 13, 8, 19, and 58. Supplemental taxes, documentary transfer tax, and federal tax aspects of real estate.
30-minute read · Built for the DRE Salesperson Exam
Proposition 13 (1978)
Proposition 13 is one of the most important California laws for real estate. Key rules: (1) Property tax rate limited to 1% of assessed value (plus voter-approved bond measures, typically making the effective rate slightly higher). (2) Assessed value can increase a maximum of 2% per year. (3) Base year value is the value at acquisition (or 1975-76 value for property owned before 1978). (4) When property changes ownership, it is REASSESSED to market value. (5) Exceptions for new construction, certain transfers, and additions.
CA Const. Article XIII A
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