I Purchased my property for 465K in 12-08, L.A. county advised me they will tax me at 600k. legal?

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How can they tax me more than what I paid for the property? Is that legal? The properties in the area which I bought  are valued at  approximately $589K, But my property was in bad shape and it needed a lot of work. How do i present my case to the County assessor? Should I show the assessor photos illustrating the condition it was in when i Bought the property?
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April 02 2009 - Northeast Hillsdale
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assessment appeals board
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January 23 2010
 

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