In my state, homes are assessed using true cash value (TCV) when the property is sold and then the taxable value is adjusted annually. If the property values within a neighborhood decrease (e.g. due to uninsurability) then that would be reflected in the taxable value.
Take a look at Detroit and surrounding area property values in the late 1980s and 2008-2012.
Comments
In my state, homes are assessed using true cash value (TCV) when the property is sold and then the taxable value is adjusted annually. If the property values within a neighborhood decrease (e.g. due to uninsurability) then that would be reflected in the taxable value.
Take a look at Detroit and surrounding area property values in the late 1980s and 2008-2012.