Most protest companies say that you only pay if they save you money on your taxes, but I really don't get how that works.
Lets say your 2021 appraised value was 400k and this year it got bumped to 525k (a 31% YoY increase which was fairly typical this year). Unless a company is going to lower your appraised rate to below $440,000 they aren't going to save you any tax dollars (this year) because of the 10% YoY cap.
Am I missing something??
I'm assuming they have to get paid on the reduced amount, not necessarily on what they save you on your 2022 taxes.
Lets say your 2021 appraised value was 400k and this year it got bumped to 525k (a 31% YoY increase which was fairly typical this year). Unless a company is going to lower your appraised rate to below $440,000 they aren't going to save you any tax dollars (this year) because of the 10% YoY cap.
Am I missing something??
I'm assuming they have to get paid on the reduced amount, not necessarily on what they save you on your 2022 taxes.
- Let's say the company has a successful protest and reduces your '22 value from $525k to $475,000. Even though they don't save you any tax money in '22 I'm guessing they still get paid on the $50k reduced amount? 50,000*.025*.25 = $437.50 (assuming a 25% fee amount from the 3rd party company)