Real Estate Math
Under California's Proposition 13, the assessed value of a property may increase by a maximum of how much per year (absent a change in ownership)?
A1% per year
B2% per year✓ Correct
C3% per year
DThe rate of inflation with no cap
Explanation
Under Proposition 13, the assessed value can increase by a maximum of 2% per year (or the rate of California CPI inflation, whichever is lower) until the property is resold and reassessed at the new market value.
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