> it is capped at a 2% increase per year and of course is reassessed at 1% of the total property value when the property changes hands.
Actually, the rate can be higher. The rate in Santa Clara county is over 1.5%.
Note that folks who bought more than a couple of years ago will see a property tax increase this year because their assessed value is still lower than their market value. Folks who bought recently are getting a huge cut.
The net result is that property tax revenues are fairly stable.
In the past, huge run-ups in property values did not result in lower rates - the local govts got huge revenue increases. When property values crashed, they raised the rates to maintain steady revenues.
Actually, the rate can be higher. The rate in Santa Clara county is over 1.5%.
Note that folks who bought more than a couple of years ago will see a property tax increase this year because their assessed value is still lower than their market value. Folks who bought recently are getting a huge cut.
The net result is that property tax revenues are fairly stable.
In the past, huge run-ups in property values did not result in lower rates - the local govts got huge revenue increases. When property values crashed, they raised the rates to maintain steady revenues.