make sure you find a realtor to represent you.....the auction house should pay the commission

The county tax assessor would assess the property not on what you necessarily paid for the property, but rather on a comparison of like properties in like neighborhoods in that locale. So the present market value of like properties would determine your taxes unless you could provide a reasonable argument as to why that would be unfair. Just because you pay a dollar on a property doesn't mean it's value is a dollar. It means you got a bargain! If, however, you felt that you were being taxed unfairly in comparison to other property owners of like property, you could challenge the assessment at the tax collector's office.

Here's some info on auctions. As for the tax question, contact your locality. They will tell you how the tax is assessed. If you truly get a "steal", be prepared to pay taxes on the property as you would have if you had purchased for fair market value.

The title company forwards closing amounts to county tax records. However you would need to follow up with them request have your property taxes reduced. I recommend for any buyer seeking to purchase auction inspect prior to auction date. GOOD LUCK