It is true that if a spouse writes a new warranty deed and adds his or her spouse to it that the WD can be written for a lesser amount that the property value and so in turn taxes are reduced... and if so what type of negative results could that have on the property value?

It is true that if a spouse writes a new warranty deed and adds his or her spouse to it that the WD can be written for a lesser amount that the property value and so in turn taxes are reduced...and if so what type of negative results could that have on the property value?
NO - taxes are assessed via municipality not by the amount on the deed. Amount on the deed relates to the conveyance or transfer tax paid on the recording of the deed - nothing else.

Well I am reading that in 2001 husband on ly on WD then 2004 husband the grantor to himself AND now his wife BUT the WD says $25k and it was 79k in 2001 so if taxes are based on municipality why would WD read 25k if not for tax advantage?

You would have to ask the husband. Generally a value is not entered on a deed. But Cville is right that property taxes are based on a formula used by the taxing district not anything on the deed. Even when put up for sale, capital gains are based on purchase vs sale prices.

It could have been done that way to reduce transfer taxes, not property taxes. In NJ the county gets paid a tax each time a deed is recorded, called the Realty Transfer Fee, that is a percentage of the price listed in the deed. Your state may have something similar.

What LisaB said... the TRANSFER/CONVEYANCE tax is paid ONE TIME when deed is recorded on the sale/transfer of the property title... property taxes are annual taxes based on the assessed value - you are mixing apples and oranges.

Usually when there is just a name change on a deed it is noted that the transfer is a GIFT so there is no conveyance tax AT ALL.