I'm looking at a home that is for sale at about 1/4th the last sale price. If I buy this home, will the county (San Joaquin) set the tax at what I paid for it or what it used to be? This is important since my monthly costs have to include some money for the property tax.
Bostonian In MO
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Under Prop 13, the property valuation typically is controlled by the selling price of the property. However that's limited to "arms length" transactions, not necessarily to distressed sales. Check with the county first to see what they will value the property at. A 75% loss of equity would seem extreme, even on the Left Coast.
Anonymous
The county assessor has probably already reduced the assessed value to reflect overall reductions in market value. These have not normally exceeded about 50% of the top of the market in 2005.
When you purchase it it will be reassessed at its current fair market value. Even with the economic bloodbath that has gone on in the central valley 1/4 of the last sale price is still very much of a stretch unless the house needs a great deal of work to be made inhabitable. My rough guess is that it will be revalued to 50-60% of its last sale price unless you can authoritatively substantiate a lower value.
Judy
The tax will be based on its assessment which will be based on value, not what you paid for it.