In California, under a state law referred to as Proposition 13—the name of the 1978 ballot proposition that gave rise to it— property taxes are set at 1 percent of the home’s assessed value, and they can never increase by more than 2 percent each year, no matter how much the home’s value grows. They don’t change again until the house is sold outside of the family. Proposition 13 did not just lower taxes, it also shrank available funding for public programs, including public schools.
To see the calculations used to determine Jared’s property tax numbers used in the book, see The White Bonus: Jared’s Proposition 13 Estimates.
To try these calculations out for your own home in California, see The White Bonus: Proposition 13 Snapshot Estimator.
