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This is a California specific question (because it has to do with proposition 13 and property taxes). Someone told me the other day that if I refinance my house to take some equity out the house will be reassesed for property taxes and any protection provided by California proposition 13 will go away. Consider an example:

Original purchase price = $50,000
Current value = $150,000
Amount refinanced = $125,000

Does this refinance mean that I will now pay property taxes based on a higher property value (i.e. higher than $50,000) simply because I refinanced?

Thank you,
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