Maybe, and I am saying maybe.......the home is appraised at XX amount of dollars. The taxes are based on a different, lower assessed value. Maybe the current owner was able to get the previous owner to come way down on the price (that might have been closer to the appraised value) and after closing went to the courthouse and contested the amount that taxes were based on. the reason being would be that the current owner paid a lower price and so by proving that, the court would grant the taxable amount to be based on the actual purchase price. Here's an example: A house is for sale and it has been appraised at $50,000. Asking price is right at 50k. A potential buyer comes along and offers $35,000. The owner accepts the offer. The buyer goes and purchases the property for 35k. After closing, he takes his papers proving how much he paid to the courthouse and asks to contest the taxes and have them based on the price he actually paid instead of the assessed value.