The owner of a home not reassessed since the 50s now worth millions today may be paying a few hundred a year in real estate tax. Corporations have found a variety of loopholes for themselves here, the simplest involve shell corporations[2] and have allowed large and extremely valuable properties to change hands without reassessment robbing the state in billions in revenue.
Even reversal of the policy just for commercial property would produce a massive windfall of much needed capital for the state, to the tune of roughly 8.2-10.2 billion dollars per year[3].
It's honestly one of the worst longstanding pieces of legislation I've ever encountered and one of the big reasons for the massive distortion in the CA housing market.
[1] https://en.wikipedia.org/wiki/California_Proposition_13_(197...
[2] https://financialtransparency.org/how-shell-corporations-und...
[3] https://static1.squarespace.com/static/550356b8e4b02e0b159ae...
California's a big economy. But it's not (at least superficially) outsized relative to other parts of the United States that contain similar populations [0]