What is taxable value?

The taxable value was created upon the passage of Proposal A, by the electorate in 1994. The taxable value is the lower of the State Equalized Value or the capped value. This is the value used times the millage rate that produces the amount of taxes levied against the property.  However, the year following a transfer of ownership, a property is uncapped and the taxable value becomes the same as the assessed value.  Following the uncapping, the property’s taxable value will follow the capped value formula.