California’s 1978 landmark legislation significantly altered the state’s property assessment and taxation landscape. It established acquisition value as the basis for property taxes, effectively limiting increases to 2% annually until a change in ownership or new construction occurred. This measure also introduced important limitations on local government revenue generation.
This change offered stability and predictability for homeowners, protecting them from dramatic tax increases driven by fluctuating market values. It provided long-term tax relief, making homeownership more affordable and predictable, particularly for those on fixed incomes. This legislation became a cornerstone of California’s property tax system and significantly impacted the state’s budget and local government funding. Its long-term effects continue to shape discussions on property taxes and revenue generation in California.
