How is the capped value determined under Proposal A?

Under Proposal A, the capped value is determined primarily by taking the previous year's taxable value and adjusting it to account for losses and inflation. Specifically, this means that you start with the prior year's taxable value, subtract any losses that may have occurred (such as those from property value reductions due to damage or other factors), and then multiply the result by a factor of 1.009, which effectively allows for a small annual increase in property value due to inflation.

Proposal A was designed to limit how much property taxes could increase each year, ensuring that property owners wouldn't face drastic increases in their tax bills, thus providing stability in property tax assessments. The method described not only safeguards property owners from excessive increases but also provides a clear formula for assessing value based on historical data rather than speculative or market-driven fluctuations.

The other options do not accurately capture the established method for calculating the capped value under Proposal A, as they either rely on different metrics that are not used or misunderstand how adjustments for inflation and losses are implemented in the context of property taxes.