have two fee structures here at Property Tax Reduction Services.
But before we explain the fee structures, we'd like to emphasize
again that if we don't reduce the appraised
value of your property, you pay us nothing!
If your property has a capped value (sometimes called a
value limitation), the fee will be 1.4%
of the reduction in the appraised value. (If
you're unsure if your property has a capped value, we suggest
you contact the Appraisal
District to find out. Their phone number is
(210) 224-8511, or you can use the link provided and look
up your property on their web site.)
your property does not have a capped
value, the fee structure is 50%
of any tax savings for that year. Most properties
fall in this fee structure, so let's take a look at how
that works first.
Structure for 50% of Savings
say that at the start of the property tax season, the Appraisal
District values your property at $100,000. We protest this
value in your behalf, and get the appraisal down to $93,000.
That means that because of the work we performed for you,
your tax base will be $7,000
less than if we had not gotten you a reduction. We will
then take the $7,000 and multiply it by whatever tax rate
is applicable for your property. Keep in mind that the tax
rate will vary depending on the exact location of your property.
The tax rates from city to city and school district to school
district can vary a great deal. For illustrative purposes,
we'll use a tax rate of 3%. So, $7,000 times 3% equals a
tax savings of $210. Our fee is half the savings, so you'd
be getting an invoice from us of $105.
|Amount of reduction
|Our fee-half of savings
note that we never mentioned anything about last years appraised
value or the amount of the actual taxes you paid last year.
The savings is based on what you would have
paid if we had not gotten you a reduction,
NOT on what you paid last year.
Fee Structure for 1.4% of the Reduction
fee structure is quite simple to compute. Using the same reduction
we used in our previous example, we simply multiply the $7,000
reduction times 1.4%, and our fee comes out to be $98.
|Amount of reduction
the 1.4% fee structure may seem like the better deal, you
must keep in mind that because of the exemptions or capped
value on your property, your reduction may be too small
to save you any money in the current tax year.