Newbie Question about Buy and Hold Analysis (Tax Levy)

[Nick SyWassink]

Hello,  I am wanting to work through some buy and hold analysis' for our local market.  

The county that I am in has a Tax levy of 40 (per $1000).  

the examples for using this calculator, that I've watched have you looking at past tax payments.  Wouldn't the tax valuation equal the amount that I purchased the property? 

An example is a property that was last assessed for  96K, the previous buyer bought the property for 168k and has it listed for 260k(i am thinking wholesale).  

The past tax payments were calculated using 96K at a Tax Levy of 40.  If I apply the tax levy rate of 40 to 260, It kills any potential Cash flow.  

Any thoughts for this newbie?