Property tax consultants help homeowners minimize their property tax and challenge excessive assessments. They review appraised property values and compare them to similar properties in the area to determine if they are consistent with market values. Training comes from direct experience in property valuation, sales, and taxation, and compensation is typically a percentage of the annual tax break earned for the customer. Only Texas requires a license to become a property tax consultant, and most consultants have affiliations with attorneys for court proceedings.
A property tax consultant works with homeowners to help them keep their property tax to a minimum and challenge assessments they feel are excessive. Although property taxes are generally levied on all types of property in the US, most property tax consultants focus on the taxes owed on real estate. To become a property tax consultant, one must have a thorough grounding, whether it be in real estate, property valuation, property tax valuation or some combination of these fields.
Property tax advisors will review the appraised value of a property and work with different sources to validate or dispute it. They will compare valuations with properties of similar properties in the vicinity and similar neighborhoods in the taxing jurisdiction and determine whether the tax valuations are consistent with actual market values. Your goal in this investigation is to build a sufficient case to challenge the valuation and force a reduction in estate taxes. The investigation itself will be relatively short, lasting no more than a week or two; the appeals process itself can take months, but does not involve a lot of consultant time. In this process, the consultant may appear before an appeals panel with or on behalf of the client.
Property tax consultants learn their trade from a variety of sources. While there are currently no degree programs offered in the subject, most colleges and universities, including community colleges, offer courses in taxation, real estate and property valuation that would provide a good academic foundation to become a property tax consultant. Much of the training to become a property tax consultant, however, comes primarily from direct experience in the field of property valuation, sales, and taxation, as a real estate agent, broker, CPA, or attorney.
As with any consulting job, compensation can be erratic. Some property tax consultants will charge by the hour or the property, but most will charge a percentage & emdash; up to 50% & emdash; of the annual tax break they can earn for the customer. It may seem like a high price for a relatively short period of work, especially in the case of commercial properties that pay tens of thousands of dollars annually in taxes, but the owner will experience the same savings annually until the next appraisal, which could be many years in the future. .
The relationship between a property tax advisor and landlords is transitory & emdash; unlike more routine tax matters such as income tax, property tax assessments are not done annually and there is not the same type of relationship that one might establish over time with a trusted tax preparer or attorney. So there is very little repeat business for the property tax advisor – most of the businesses are new, although a successful advisor will see a fair amount of referral business. Furthermore, although someone with the appropriate training and skills could theoretically enter any jurisdiction and become an estate tax advisor, it is likely that the more familiar you are with a particular jurisdiction or region, the greater your chance of success.
Only Texas requires a license to become a property tax consultant; in this state, 40 hours of classroom instruction are required unless applicants have related, documented experience. Because property tax appeals usually involve court proceedings at some point, most property tax advisers have affiliations with attorneys who will represent the client should the appeal need to be pursued in court. Some states also hold that self-employed property tax consultants practice law without a license; in these states, property tax consultants generally operate under the supervision of an attorney.
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