Why a Property Tax Attorney is Required
A property tax attorney is an expert in property law who can be an essential ally to property owners, whether they’re dealing with non-payment of taxes, property foreclosure or even in-depth appeals. These professionals also have experience in the normal day-to-day operations of property ownership, and can prove to be an extremely valuable asset to clients who need expert legal advice. Any property owner who has ever been hit with a new tax bill is more than aware of the stress that comes with property ownership and the obligation to pay taxes on that property. When total property tax bills go up, so may the need for additional hours of work just to make those tax bills. What happens when you don’t have additional hours? What happens when the new tax bill is more than you can afford? No matter the reason, you could simply be unable to pay your property tax bill. Foreclosure is one of the most worrisome moments any property owner could face. Losing your home can be devastating for many , and property tax lawyers are incorporated into this picture. There are attorneys who focus solely on the issues of loss of real estate taxation. These lawyers can help prevent the foreclosure of your home from becoming a reality. It takes the stress off of the homeowner and places it onto an expert who can handle the situation legally. Tax liabilities can be reduced for a number of reasons. Property tax attorneys are vital in these cases because they can recommend strategies that help reduce taxes, appeal assessments and reach agreements with government officials. It’s not unusual to find a number of methods that work to save property by reducing tax liabilities. Most property owners will hire a property tax lawyer for three main reasons, including: A property tax lawyer is invaluable to clients and could help resolve a myriad of problems ranging from appeals to severe tax problems. They understand what appeals can do to protect their client’s interests, they have knowledge of the tax code and they can reduce liability and change the outcome of the case.
How to Locate a Property Tax Attorney in Your Region
There are a number of ways to find a local attorney to represent you in property tax disputes. One of the most popular methods is through an online search. You can search by your zip code, city, or county to find attorneys who specialize in property tax appeals in your area. From there, you can view the attorney’s website, qualifications, and practice areas.
Another way to find an attorney is to seek referrals from friends, family, or other professionals who you may know. A personal referral is often the most reliable form of information as you trust that person to be honest about their experience. If you know someone who has hired a property tax attorney for an appeal in your area, talk to them.
Cost is also high on most people’s lists when making a decision on retaining an attorney to handle their property tax case. A flat fee for the appeal process is normally the best way to go for this type of case. Some attorneys will charge an hourly rate for their services. Either way, there are usually no up front costs or retainers. The attorney will get paid if and when your property assessment is lowered.
Key Inquiries for Your Property Tax Attorney
As is the case with most hiring processes, asking the right questions will help you find the best attorney to meet your needs and budget. When you consult with a property tax attorney for the first time, consider asking about the following:
Have you handled many cases like mine before?
While a property tax attorney need not have handled your specific type of case in order to be able to handle your case, he or she should have some experience with similar cases and should be comfortable explaining how property taxes are resolved in your area.
How much do you charge?
Many attorneys work on a flat fee basis, which can be paid in full at the beginning of the process. Others charge by the hour. If the latter applies, ask what the hourly fee is and get an estimate of how long the attorney thinks it will take to handle your case. Make sure you understand how payment is made and when.
What kind of outcome do you expect in my case?
Be wary of any attorney who makes a guarantee regarding your case, but an experienced property tax attorney should be able to provide you with at least a general idea of what you can expect. Gaining an understanding of what can be expected will help you choose the right attorney for your case.
How familiar are you with my county’s property tax regulations?
An attorney who has experience in your county is a plus, since he or she will be familiar with local rules and regulations as well as the most common types of fees, fines, and penalties you may face.
Assessing Credentials and Testimonials
Before making an appointment, it is essential to verify the attorney’s credentials. Even though all lawyers must be licensed to practice in their jurisdiction, you should confirm that your potential attorney is in good standing with the state bar (or equivalent). You can search on your state bar’s website. This will indicate any disciplinary action, including potential or pending suspensions or even a loss of license to practice. If you find disciplinary information on your prospective property tax attorney, you may want to consider contacting the bar or look elsewhere for legal representation.
It’s also a good idea to look for any specific membership in groups like the American Bar Association, the American Institute of Certified Public Accountants or any local real estate associations. Membership in these organizations demonstrates a commitment to their practice area and is something you should expect from an attorney.
Client reviews are a terrific way to identify a strong candidate. If you know someone who is a lawyer, ask them if they can refer you to a good property tax lawyer. Local attorneys tend to be familiar with the leading practitioners in the area. You may want to check if the local bar association or another organization has a referral service or ask the bar association if it has a list of local property tax attorneys. It is also worth checking Yelp to read authentic reviews.
If you have more questions, don’t hesitate to follow up with your most promising lead. A great lawyer will be eager to assist you.
Understanding the Fees of an Attorney
Occasionally, clients will call us with a somewhat unusual request. "Will you work for free until you win my case, and then take a percentage of whatever the savings are?" Clients ask this question a lot more often than we actually agree to do this type of work. In fact, our property tax attorneys do not work on a contingency fee basis. Our clients pay us up front for the property tax appeal, so we’re not depending on "finding" some big refund to support our legal fees. Instead, we get paid a prevailing hourly rate for our work on the appeal, which is later off set by whatever savings we’re able to find for the client. All of this is detailed in our retainer agreement to ensure everybody is on the same page when an attorney client relationship is formed.
While the Ontario bar rules state that a lawyer must inform their client of their billing rates and the system for payment, those billing practices are not always being applied by some law firms. A property tax law firm that represents owners typically bills in six-minute increments , while a property tax law firm that represents municipalities will often bill on a much more generous quarter-hour increment or even hourly. The difference in billing practices can lead to a staggering difference in how much you’re paying your property tax lawyer.
To give a better idea of what the cost might be for hiring a property tax lawyer, consider some of the most commonly used services:
Most property tax firms in the area offer flat rate legal fees for most of the services listed above. This range is fairly standard, but it can vary based on the experience of the individual lawyer performing the work. In addition to hourly rates, some firms charge a percentage fee on any refund amount secured through their efforts. The fee is most often a set percentage in the range of 15% to 20%. In some rare cases, a property tax lawyer may charge a flat fee plus a smaller percentage fee. The percentage fee is added to any hourly fee charged on work done to prepare the assessment review board application and maker representations at the hearing.
Legal Techniques to Control Property Taxes
Property tax attorneys commonly employ a variety of legal strategies and approaches to handle property tax issues, including appeals, exemptions, relief programs, and more. Each situation is unique, and not every issue can be resolved with all relevant methods of legal strategy such as:
FACILITATING APPEALS
One widely used approach is to facilitate appeals of property taxes. This may involve contesting the property tax assessment by filing a property tax appeal. Many states provide processes to contest property tax assessments for real estate and personal property. For real estate, property owners often have the right to appeal an increase in the appraised value of their property, which generally entails presenting evidence to a review board or appeals board regarding the fair market value of the property. Sometimes an appeal can also be filed when the property owner believes the assessed taxes are not fair based on the tax rate or lacks jurisdiction over the property. For personal property, an appeal might begin by appealing to the local assessor in response to a notice of personal property assessment.
EXEMPTIONS
Besides appealing property tax assessments, property tax attorneys often help clients identify all tax exemptions for which they may qualify. Tax exemptions come in various forms. Common examples are homestead exemptions, veteran’s exemptions, exemptions for properties used for charitable purposes, religious exemptions, and residential property exemption programs. Laws regarding property tax exemptions, eligibility requirements, and application processes vary by state and locality. Many exemptions apply to property owners and occupants of residential properties. Other exemptions apply only to non-profit entities that own certain types of properties, such as hospitals, schools, universities, and places of worship. It may be possible for an attorney to help a client prepare a wide range of exemption application materials, pay property taxes through a payment plan, or even obtain property tax relief.
RELIEF PROGRAMS
Another area in which property tax attorneys frequently assist their clients is property tax relief programs. City, county, and state governments may offer a variety of programs to provide property tax relief in different circumstances. Localities often have property tax deferral programs that allow qualified resident property owners to defer all or part of their property taxes to a later date (including to their estate after their death), property tax refund programs to repay part of the property taxes paid in previous years (in some situations), and property tax abatement programs (that is, programs that allow property owners to avoid paying property taxes altogether). States and the federal government may provide relief programs that prevent discrimination in property tax assessments and collections.
Other legal strategies might involve obtaining consolidated tax rolls for streamlined property tax payments or obtaining a tax cap that strictly limits increases in property taxes.
Successful Property Tax Resolution Examples
While specific case studies cannot be used in this venue, there are many examples that show how successful it can be to engage an attorney who specializes in this area of the law. In the case of a small business owner we interviewed, she and her husband owned a vacation rental property on the Caribbean island of Aruba. The owner had owned the property for almost three years when an increase in property taxes was assessed by the local taxing authority at 75 percent over the previous year’s taxes. She contacted a local real estate attorney, who advised her to hire a property tax attorney to file an appeal of the taxes. The attorney filed the appeal and with supporting documentation as requested by the court. After a period of negotiations with the local tax authority , the property owner received a reduction of 25 percent in the amount owed.
A similar situation occurred in the case of a couple that owned an apartment building. The couple had owned the property for more than four years, when they received notice of a tax increase of more than $2,000. The couple hired another property tax attorney to file a complaint with the tax appeal board. An entire city block had been razed and cleared of buildings and sold for $1.5 million just across the street from the couple’s apartment building. Their attorney added photographs of the vacant lot and the sold sign along with evidence of comparable property sales in nearby neighborhoods to the appeal filed with the tax appeal board. The couple’s appeal was heard in open court and the couple was represented by the attorney during the hearing. The couple received a reduction of $1,500 in taxes.
The phrase "what you don’t know, can’t hurt you" does not apply to property taxes.