Traditionally, when a house sold and transfer taxes are paid, the county would adjust the records and taxes would be assessed off the purchase price.

With the influx of re-assessments, the explanation now differs. Santa Clara County is assessing taxes based off the property's value.

The property's value would be the sales price, right?

Nope. Not always. Explain to me a house that sells for $200,000 cash when four other offers (loan contingent) were submitted on same property from $225K to $245K. What was the house worth?

Per the purchase contract, $200K. But if all the comps in the neighborhood sold for $235K to $250K, then the property's value would then be based on a number HIGHER than $200,000.