Can someone help me clarify how max property tax increase is calculated via prop 13?
Prop 13 limits it to 2% yearly.
Does this mean the tax increase can be a max of 1% of the 2% of the assessed value?
So a $1000000 home will have a max tax increase of 1000000*0.02*0.01= $200 per year?
Or is it just 2% of the assessed value, so max tax yearly increase is 1000000*0.02 = $20,000?
The second number seems crazy high, which is correct?