Home › Forums › Closed Forums › Buying and Selling RE › Assessed value above purchase price? › California tax law says
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