The assessed value is supposedly equal to the fair market value minus the applied equalization rate. Now since you bought the home for $'s and it was an arm's length transaction, meaning no one was under duress to buy or sell and it was not a foreclosure or sale to a relative, it is considered fair market value.
The best evidence of this would be the current appraisal from the bank you received when applying for the loan. If you paid cash then I suggest you get an appraisal. Bring that appraisal with you to the assessor's office and you should be able to convince her that together with the appraisal value and the actual purchase price you paid the fair market value and that is what you should be taxed on.
This is a very short explanation and full details can be explained by a person who does these types of grievances for a living. I can provide you with a contact if you decide to continue. Although I am a broker owner of a realty company I myself have done this successfully four times. You can contact me at 845-255-0019.

We currently rent in New Paltz, and are moving into a single family home. Just never realized that taxes were so high as renters... since we are buying a house at a price that is WAY lower than that which it was assessed (265K vs 320K), we will definitely grieve our taxes. might you have any idea as to how much we can grieve it down?

Hi Hendrick,
New Paltz is beautiful. Did you try to grieve your taxes? Have you tried looking in other areas in Ulster?

K.Ryan
Associate Broker with Houlihan Lawrence Real Estate
kryan@houlihanlawrence.com