CA Property tax question: If your home is appraised will your tax rates be based on the appraised value?

Question

Or does prop. 13 force counties to stick with the original price a buyer paid for the home? I want to take a very small home equity loan out ($5,000), but it may not be worth it if my tax bill goes up 50%.

Answer 1

The value for tax purposes is set when the property changes hands under Prop 13. Tax is based upon that, generally at about 1.25%. Increases are strictly limited as well under Prop 13. An appraisal will have no affect on the taxable value until the property changes hands again.