What is capped value on property taxes?

Capped value on property taxes is a type of tax limitation that prevents property taxes from increasing above a certain percentage from year to year, regardless of changes in the property's market value. This cap is typically put in place by local governments to protect homeowners from large tax increases due to rising property values.

There are often different types of caps that can be put in place, such as a homestead exemption or a freeze on the assessed value of the property. These caps can vary in terms of the percentage increase allowed each year and how long they last.

Capped value on property taxes can provide stability and predictability for homeowners in terms of their tax bills, but it can also limit the ability of local governments to generate revenue to fund public services and infrastructure. Additionally, capped value on property taxes can lead to disparities in tax burdens among property owners, as those who have owned their property for longer may pay significantly lower taxes compared to those who have recently purchased property.

Overall, capped value on property taxes is a complex issue that involves balancing the interests of homeowners with the financial needs of local governments.