In June 1978, California voters approved Proposition 13, a property tax limitation initiative. Proposition 13 rolled back most local real property (real estate) assessments to 1975 market value levels. Proposition 13 also limited the property tax rate to 1% plus the rate necessary to fund local voter-approved bonded indebtedness; the initiative also capped future property tax increases. Under Proposition 13, similar properties may have substantially different assessed values based solely on the dates the properties were purchased. Disparities result wherever significant appreciation in property values has occurred over time. Longtime property owners, whose assessed values are generally not increased more than 2% per year, tend to have a markedly lower tax liability than more recent purchasers whose assessed values tend to approximate current market levels. Source: California State Board of Equalization Proposition 13/1975 Base Year Parcels Percent of Value $ 83.2 $ 33.2 39.9% $ 11.2 $ 38.8 $ 150.0 $ 71.2 47.5% $ 22.8 $ 56.0 $ 245.2 $ 115.7 47.2% $ 32.7 $ 96.8 $ 412.8 $ 200.3 48.5% $ 57.5 $ 155.0 $ 486.8 $ 251.1 51.6% $ 64.4 $ 171.3 $ 569.6 $ 306.6 53.8% $ 70.5 $ 192.5 $ 823.7 $ 469.8 57.0% $ 106.5 $ 247.4 $ 1,042.3 $ 583.3 56.0% $ 137.9 $ 321.1 $ 1,264.9 $ 727.8 57.6% $ 166.2 $ 370.9 $ 1,416.1 $ 818.2 57.8% $ 190.4 $ 407.5 (1) All values are exclusive of exemptions (real estate and homeowners' exemptions) and public utilities. (2) Business inventory became 100% exempt. 2017 13.4 % 28.8% 2010 13.2 % 30.8 % 2015 13.1 % 29.3 % 2000 12.4 % 33.8 % 2005 12.9 % 30.1 % 1990 13.9 % 37.6 % 1995 13.2 % 35.2 % 1980(2) 15.2 % 37.3 % 1985 13.3 % 39.5 % Total Roll Value 1975 13.5 % 46.6 % Year Value Total Roll Total Roll Value Percent Percent Total Roll of of (Values in Billions) Single-Family Residential Residential Income Commercial-Industrial DISTRIBUTION OF VALUE BY PROPERTY TYPE(1) DISTRIBUTION OF VALUE BY PROPERTY TYPE(1) (Values in Billions) 9