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California real estate taxes are simply very different than Texas.

I've always thought Texas real estate taxes are very different than California's. I guess we're both right. ;-)

This would never be an issue in Texas under currently rules. In Texas, properties taxes are based on the value as of January 1 ...

Yes. This is a fallout of our Prop 13. Under Prop 13, the assessed valuation for property taxes cannot increase more than 2% per year. Because of that, and a real estate inflation rate which is more than 2%, CA properties are typically valued for property taxes at an amount less than their current FMV. But Prop 13 requires a re-assessment to the current FMV any time ownership of the property changes. That brings values back up to current values.

So while our general valuation date is also Jan 1 of each year, property is re-valued whenever the ownership changes. (Gotta get the valuation up as soon as possible to increase tax receipts!) Of course, exceptions to this re-valuation have been carved out over the years. And that is what leads to threads like this one.

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