Factoring Tax Amount

[Justin Sheley]

I have been trying to educate myself on taxes recently because it is part of the real estate equation that I still struggle with when I am analyzing deals. I am currently buying in Rockford, IL and there are two four families that I am interested in. The current taxes are $5667 on each properties, but that was based on a tax assessment of $40,475. If I'm understanding this right that tax amount is based on a price of a little over $120,000. The buildings are currently listed as foreclosures @ $61,000. If I were to purchase them at that price the tax amount should change correct? I'm trying to understand if the tax bill is based off the purchase price when I buy the property or the assessed value of the property.