Under Proposal A, a property is "uncapped" in the year following a transfer of ownership and the taxable value becomes equal to the assessed value. This can sometimes create a significant change in taxes for a new property owner in the first year of ownership. After the first year, the taxable value is again "capped" and the subject only to increase by the inflation rate or 5%, whichever is less, unless there is an addition to the property or omitted property.