Final answer:
According to Proposition 13, the maximum value for property tax purposes in two years for a property initially valued at $500,000, without capital improvements, would be $520,200, reflecting the annual 2% cap on taxable value increases.
Step-by-step explanation:
If a property was valued at $500,000 for property tax purposes and we are considering the regulations of Proposition 13, we need to calculate the maximum value for property taxes in two years, assuming the owner did not make capital improvements. Proposition 13 caps the increase in taxable value to a maximum of 2% per year, unless the property is sold or new construction is completed.
For the first year, the maximum increase in the value of the property would be:
Year 1: $500,000 x 1.02 = $510,000
For the second year, we use the year 1 value as the base:
Year 2: $510,000 x 1.02 = $520,200
Therefore, the maximum value for property tax purposes in two years, under Proposition 13, would be $520,200.