[anamax]

> it is capped at a 2% increase per year and of course is reassessed at 1% of the total property value when the property changes hands.

Actually, the rate can be higher. The rate in Santa Clara county is over 1.5%.

Note that folks who bought more than a couple of years ago will see a property tax increase this year because their assessed value is still lower than their market value. Folks who bought recently are getting a huge cut.

The net result is that property tax revenues are fairly stable.

In the past, huge run-ups in property values did not result in lower rates - the local govts got huge revenue increases. When property values crashed, they raised the rates to maintain steady revenues.