It’s common to see large disparities; from looking at a random street (Betlin Ave, Cupertino) there is a house with an assessed value of $67k while Zillow estim

It’s common to see large disparities; from looking at a random street (Betlin Ave, Cupertino) there is a house with an assessed value of $67k while Zillow estimates its value at $1.7M. Assuming that inflation is ≥2% per year yet property values are held constant, it would take 164 years for the assessed value to “catch up” to market value. And the tax discount is not just for the elderly. Children inherit their parents’ low assessment. The tax only jumps up beyond 2% in a year when the owner renovates or sells the house. The tax rate is around 1.25% (limited by Proposition 13 to 1%, plus slightly more for infrastructure bonds). The low tax rate contributes to higher market prices. Proposition 13 is a very good system for property investors.