I thought that in California, your assessment was fixed by the year you bought your house (Prop 13) + 2% per year. So if you bought a house in 1978, it would be assessed at 1978 levels, plus 2% per year. But the identical house next door that sold in 2006 would be assessed at 2006 prices.
Most people live in a house only about five years. Most of the people purchasing houses in 1978 have probably moved on. Very few Californians stay in a community twenty years. Look it up yourself. How many people who bought houses since 2000 have had to deal with increased property taxes ___________ ? Real estate values have gone down about 40% ++++ since 2005. Tax assessments do not go down automatically. Appeals must be filed when properties are over-valued by the county.