One such change is the "assessment cap". The language in Proposal A stated that, starting in 1995, the taxable assessment can be increased only by the amount of the consumer price index (C. P. I.) or 5% (whichever is less). However, other laws still require that the State Equalized Value (S.E.V) is to be 50% of the current market value. Since 1982, the S.E.V. and assessed value have been virtually the same. The capped value and the S.E.V. could be totally different.
- State Equalized Value (S.E.V.) equals half of the Appraised Market Value.
- Capped Value equals last year's taxable value increased by the Consumer Price Index (with a maximum of 5%) plus construction changes.
- Taxable Value equals the lesser of the State Equalized and Capped Values. The Taxable Value will be used for the calculation of property taxes.
For detailed examples, please visit the Understanding the Assessment Cap (PDF).