Under Prop. 13, real property in California is reassessed only when it is sold or transferred. Between sales, the assessed value can be raised by no more than 2 percent a year plus the value of improvements.
In the wake of Prop. 13, California voters approved two propositions that exclude from reassessment transfers of certain real property between parents and children and – in limited circumstances – from grandparents to grandchildren. (Transfers between spouses were already exempt from reassessment.)