Maximum Assessed Value (MAV) was established by Ballot Measure 50 for the 1997-1998 tax year. MAV is the greater of 103% of the prior year’s assessed value (AV), or 100 percent of the prior year’s MAV, whichever is greater.
MAV’s for properties that existed prior to 1995 were set based on the 1995-1996 Real Market Value (RMV), less 10%. MAVs for “new” properties (constructed or created after 1995) are set by multiplying the property’s Real Market Value (RMV) at the time of construction or creation by the Changed Property Ratio (CPR) for that year.
MAV is the only part of your tax bill where a 3% increase limit applies. However, your MAV can increase above 3 percent of the prior year’s assessed value if certain things defined as exceptions are made to your property. Maximum assessed value does not appear on your tax statement.