The system in California is pretty ideal. I say this as a property owner there.
Homes are assessed by the most recent sale price.
Both the city and the home owner can appeal that assessment-
So in cases where you overpay for whatever reason you can get it reduced, as well as if your home falls in value after you buy it - In cases where you sell a friend your house for a dollar, the city can appeal the 'last sale price' to get a market assessment. If you do a major addition, the home gets reassessed. Assessments are capped at something like 1-2% increase a year max, so you can budget increases accordingly, thanks to prop 13.
This compared to florida, where my home purchase/sale price has nothing to do with the appraisal. Instead they look at all 'comparable' homes and average out the assessment that way. That has the disadvantage of having half the people underpaying for their property tax and half overpaying.
"In cases where you sell a friend your house for a dollar, the city can appeal the 'last sale price' to get a market assessment"
In France, municipalities can preempt real estate transactions as long as they offer more than the buyer, so the city would get your house for two dollars.
This is mostly to discourage under-reporting of transaction prices, as property ownership change taxes are a major revenue source for cities...
Homes are assessed by the most recent sale price. Both the city and the home owner can appeal that assessment-
So in cases where you overpay for whatever reason you can get it reduced, as well as if your home falls in value after you buy it - In cases where you sell a friend your house for a dollar, the city can appeal the 'last sale price' to get a market assessment. If you do a major addition, the home gets reassessed. Assessments are capped at something like 1-2% increase a year max, so you can budget increases accordingly, thanks to prop 13.
This compared to florida, where my home purchase/sale price has nothing to do with the appraisal. Instead they look at all 'comparable' homes and average out the assessment that way. That has the disadvantage of having half the people underpaying for their property tax and half overpaying.