What is "full cash value" in property taxation?

"Full cash value" in property taxation refers to the current market value of the property, which is specifically adjusted in accordance with the provisions set forth by Proposition 13. This California constitutional amendment limits the annual increase in assessed value of real property to a maximum of 2% per year, unless there is a change in ownership or new construction.

Under Proposition 13, when a property changes ownership, it is reassessed at its current market value, thus determining its "full cash value." This ensures that the property tax is based on the actual market conditions at the time of the change in ownership, rather than solely on the historical purchase price or any book value accounting.

Understanding "full cash value" as the current market value adjusted for Proposition 13 is crucial for accurately assessing property taxes, ensuring fairness in the taxation process, and keeping property taxation aligned with market realities.