Explanations

Proposition 13, passed in 1978, established the property tax rate in California. One of its key components set the base property tax rate at 1% of the property’s value. This property’s value is also referred to as the “full cash value” or “assessed value”. While properties can have additional special assessments that increase the overall tax rate, the base minimum rate, as a direct result of Proposition 13, is 1%. The 2% mentioned in some options refers to the maximum annual increase in a property’s assessed value, not the tax rate itself.

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