California L/O and Prop 13 taxes

Here is a warning from John T Reed, a rater of the various real estate experts out there, about L/Os in California:

They (lease options) trigger reassessment for property-tax purposes in California, thereby wiping out the protection California homeowners normally get from Proposition 13.

Is this true? Or is Mr Reed simply blowing smoke?

I personally haven’t heard of this and I have done a few in SD. I now some investors that do only LO and haven’t heard of it either, but would like to know if it is true. Anyone??

Reed is one end of the horse. I’ll let you decide which end that be. :cool