[quote=DataAgent]California tax law says “properties are reassessed to current market value only upon a change in ownership…”

Purchase price is usually equal to current market value. However, if the state feels you got a “smokin’ deal” they can adjust the value accordingly.

http://www.boe.ca.gov/proptaxes/pdf/pub29.pdf%5B/quote%5D
Thats exactly right.
If you disagree, you will have to take it up directly with them.
Don’t be shy.

If it is the case that you bought at market, this means that you will likely be able to successfully contest it.

Good luck.