If CPI is negative, assessed California home values could fall

The San Francisco Chronicle reports:

Don't count your chickens just yet, but if inflation remains low or negative between now and October, people in California who have never received a property tax reduction could get a small one next fiscal year, even if their homes are worth far more than their assessed value.

Under Proposition 13, property is generally reassessed only when there is a change of ownership. After that, its assessed value is adjusted annually by an inflation factor not to exceed 2 percent. New construction also adds to a property's assessed value. Property taxes are generally 1 percent of assessed value, excluding local taxes.