Prop 13 did what in 1978?

• A. Increased property taxes
• B. Reassessed values to 1985 levels
• C. Capped property taxes, rolled back assessed values to 1975-76, and allowed only 2% annual increases
• D. Eliminated property taxes on commercial property

Answer: (C)

Prop 13 fundamentally changed California property taxes by putting a cap on how taxes can grow and by resetting the base value. It rolled the assessed value back to the 1975-76 level and then limited increases in that value to 2% per year, unless there’s a change in ownership or new construction. This combination meant tax bills could not rise with inflation each year, creating predictability for property owners. It applied broadly to property taxes, including commercial property, and did not simply set values to 1985 levels or eliminate taxes. The description in the option matches these core effects.