However, some jurisdictions attempted to move the tax basis back up to the original prices, plus 2% per year once the market recovered. There was a lawsuit in Orange County in which the plaintiff claimed that prop 13 limits it to 2% increase each year after any reassessment as well. They lost.
So when things recover, the county can (and likely will) bump your taxes back up to the original basis, plus 2% per year. You can save lots of dough in the mean time, though. Happened in the OC and I also read something about it in SD, but don;t know if they focused on commercial properties only or also Joe Homeowner.
JJ- Did they bump your cost basis back up?
On a side note : This could be a proxy for market turnaround. When the U-T consistently has articles and letters in the financial section regarding lowering your property tax basis, it will be time to consider the RE market again.
