This is a common misperception. Actually, Measure 50 only limits Maximum Assessed Value (MAV) increases to 3% per year for unchanged property. It does not limit either Assessed Value (AV) or tax rates.
Taxes may increase more than 3% due to:
- Changes in the tax rate for your Levy Code Area, such as when a new bond measure is passed.
- If the AV of your property was based on the RMV during the prior tax year, and the RMV increases more than 3%. AV is the lower of your RMV or MAV.
- Loss of “compression” savings if the tax calculation based on your AV and tax rate no longer exceeds the Measure 5 limits.
- If your property experienced one or more “exception” events during the year prior to the valuation date (the valuation date is the January 1 preceding when you received your tax statement). Exceptions, as provided by Measure 50, include partition or subdivision, change of use following a rezoning, new construction or additions, remodeling or rehabilitation that changes the character of the property, discovery of omitted property, and disqualification from exemption or special assessment.