The assessed value is based on recent sales of similar comps. If you bought your house for $50k in 1979, of course you want it to be based on the original pric

The assessed value is based on recent sales of similar comps. If you bought your house for $50k in 1979, of course you want it to be based on the original price. In CA, the assessed value can only go up by 2% a year. But if I buy your house today for $1.2m, then I am going to be paying $1,000/month in property taxes. And if you want to move across town, or even downsize a little to that $800k condo, well, then you are going to lose that low low property tax rate. Which is one of the reason there is a housing shortage. People don't want to upgrade or downgrade or otherwise sell. They just figure out ways to give it to their children or rent it out and keep the low tax rate locked in.