California Constitution Article XIII A - Tax Limitation [Sections 1 - 7]
California Constitution – Article XIII A: Tax Limitation
[Sections 1 – 7]
Also known as Proposition 13 (1978), Article XIII A imposes restrictions on property taxation in California. Here's a section-by-section breakdown:
Section 1 – Property Tax Limitation
(a) The maximum amount of ad valorem tax on real property shall not exceed 1% of the full cash value.
(b) "Full cash value" is defined as:
The assessed value in 1975–76, or
The value at the time of purchase, new construction, or change in ownership, plus inflation adjustments not exceeding 2% per year.
(c) Real property may be reappraised when:
Purchased,
Newly constructed, or
Ownership changes.
Section 2 – Voter Approval for Tax Increases
State taxes must be approved by a two-thirds vote of the Legislature.
Local governments need a two-thirds voter approval to impose any special taxes.
Section 3 – Invalidating Excess Tax Rates
Any ad valorem taxes above the 1% limit are invalid, unless authorized by:
Voter approval for bonded indebtedness (e.g., schools, cities, or counties), requiring a two-thirds vote.
Section 4 – Limit on Local Agencies
Local governments are prohibited from reassessing property to raise revenue without proper cause (purchase, construction, etc.).
Section 5 – Exceptions
Taxes to pay for indebtedness incurred before July 1, 1978 are exempt from the 1% cap.
Section 6 – State Mandates
If the State mandates any new program or higher level of service on local governments, the State must provide funding.
Section 7 – Effective Date
Article XIII A took effect on July 1, 1978.
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