Proposition 13
Also known as: Prop 13
A 1978 California ballot initiative that limits property tax increases by capping the tax rate at 1% of the assessed value at the time of purchase and restricting annual assessment increases to no more than 2% per year until the property is sold. Proposition 13 significantly affects HOA communities because it means neighboring owners may pay vastly different property taxes based on when they purchased. It does not apply to HOA assessments, which are separate from property taxes.