The risks of property tax appraisal capsI'm not a tax expert, but I have heard some anecdotal evidence from California on the risks of property tax appraisal caps (something our state legislature is currently considering). There are a lot of risks, some of which are articulated here. My understanding is that California put an insanely low appraisal cap (1-2%/year) in quite a while back (Proposition 13), which has created a very warped real estate market. Appraisals are reset whenever a property is sold or major improvements are made, and they now have properties that, for instance, can be worth $800K but appraised on the books at only $300K. Those people can never sell or make improvements without generating a huge new annual tax bill, so houses go unimproved and unsold, leading to a state of renters rather than owners. It's a mess, and one that's just about impossible to undo without a voter revolt.
A better approach is to automatically reduce the property tax rate (rather than the appraisal). Or, even better, maybe increase a property tax exemption on the first $X of value, which makes it easier for the poor to become homeowners because of a lower tax burden on lower value housing, while still spreading the benefit across everybody.