The “Assessment Gap” serves as a permanent exemption from taxation and represents the difference between the 2012 market value and the 2012 capped value.
This mechanism protects homeowners from unexpected assessment spikes.
Any increase greater than 10% will be phased in over time, making assessment growth much more stable and predictable.
New construction and/or major improvements are excluded from this protection.
If the real property is transferred in the current year, it is assessed at its real and true value for the following year.