Yes. Proposition 13 is famous for triggering sweeping tax changes across the country.
In CA, Prop 13 effectively caps how much the assessed value of your home can increase each year to 2%.
So over time, the tax burden of long term property is much less than the current property value.
When the house changes hands (generally) the house is reassessed to the market.
There was also new laws passed a few years ago where a family can bring their current tax basis forward to a new home.
There’s also the phenomenon of businesses buying other businesses, but leaving them formally intact so that their assets don’t “change hands” thus maintaining the inherited tax basis.
In CA, Prop 13 effectively caps how much the assessed value of your home can increase each year to 2%.
So over time, the tax burden of long term property is much less than the current property value.
When the house changes hands (generally) the house is reassessed to the market.
There was also new laws passed a few years ago where a family can bring their current tax basis forward to a new home.
There’s also the phenomenon of businesses buying other businesses, but leaving them formally intact so that their assets don’t “change hands” thus maintaining the inherited tax basis.