Most 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?? 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)