What could likely cause a property's taxable value to increase beyond the limit imposed by Proposal A?

Adding a physical improvement to the property is indeed a significant factor that can cause a property's taxable value to increase beyond the limit imposed by Proposal A. Under Proposal A, the taxable value of a property generally cannot increase by more than the rate of inflation or 5%, whichever is less, unless there is a change in ownership or new construction. When a physical improvement, such as an addition or major renovation, is made to a property, it increases the overall value of the property itself. This is typically assessed and can result in an adjustment to the property's taxable value that exceeds the standard limits set by Proposal A.

Proposal A allows for this increase because the improvement indicates a significant enhancement to the property's utility and livability, which justifies a reassessment beyond the typical inflation cap. This recognizes that the investment put into the improvement increases the property’s market value and, subsequently, its assessment for taxation purposes.