Proposition 13 is a landmark California ballot measure passed in 1978 that significantly changed property tax laws. It capped property tax rates at 1% of the assessed value and limited annual increases in assessed value to a maximum of 2%, regardless of market fluctuations. This measure aimed to provide tax relief to homeowners and prevent rapid increases in property taxes. The passage of Proposition 13 also required a two-thirds majority for any new taxes or tax increases at the local and state levels. This has had lasting effects on California's budget and funding for public services, including education and infrastructure, as it restricted local governments' ability to raise revenue.