The cost of a property tax lawyer will vary depending on the type of property and the issues involved. The average hourly fee of a property tax lawyer for simple residential transactions typically ranges from $150 to $500 per hour, or more.
For cases involving simple residential transactions, how much a lawyer will cost may range from $500 to $1,500. This is for cases involving things such as title work, contract reviews, and real estate closings.
If a case involves title disputes or issues or complicated negotiations, the cost may increase to $1,500 to $3,000 or more. As a general rule, the more complicated a case, the higher the cost of a lawyer will be.
In some cases, an attorney may charge a retainer fee, which can range from $1,000 to $5,000 or more. In very complex cases, this amount can be up to $10,000 or more.
If the case involves commercial property, the case will likely cost more to resolve because they are often more complex. Some attorneys will handle these cases charging by the hour and others may charge a flat fee for certain standard services.
What Does a Property Tax Attorney Do?
A property tax attorney is a type of lawyer who is familiar with property tax laws, including business property tax. They can help an individual if they have a property tax dispute. Property taxes are contributions that an individual owes to their local or state government when they own real estate or real property in the jurisdiction.
Each state has its own rate that it charges for property taxes. Property tax laws govern issues involving real estate and property taxes at the local and state levels, which includes ad valorem taxation.
In general, the percentages of taxes that are owed on the property are determined in accordance with the overall value of that property. This means that the lower the assessed value of a property, the lower the percentage of taxes will be that the property owner has to pay to their local or state government.
There are several factors that can influence the amount of property taxes, including:
- Property values in the neighborhood
- The rank of the local school district
- The annual city or state budget for the area
Property taxes are one of the more common issues that arise in connection with real estate matters. Property tax attorneys will also have knowledge of applicable property tax exemptions.
They can also help clients with real estate that is owned by the government, religious organizations, nonprofits, and educational institutions. Property tax lawyers will be aware of the legal limits for tax imposition.
Property tax lawyers can help when an individual has not paid their property taxes. They can also assist clients with tax deeds and tax liens.
A property tax lawyer can help clients with common disputes involving property taxes, such as:
- The full amount of property taxes that are owed
- The percentage of unpaid property taxes that is owed on a property
- The appraisal value of a piece of real estate or land
- Which party is required to pay property taxes during the sale or transfer of real property
- If the outstanding property taxes on a piece of property are interfering with the ownership and usage rights of that property
A property tax attorney can also help clients with property tax disputes in criminal cases involving liability, such as tax fraud or misrepresentation. Property tax disputes can also have an effect on a business that an individual owns.
For example, an individual may be forced to liquidate a business so they can afford to pay their personal property taxes. If an individual has any questions about what a property tax lawyer can help them with, they can schedule a legal consultation and get some legal advice and information on their situation.
What Factors Determine the Cost of a Property Tax Lawyer?
There are numerous factors that can determine the cost of a property tax lawyer, including:
- The experience level of the lawyer, as lawyers with more experience will often charge higher rates
- The cost of living in the area
- The complexity of the issue or transaction, as more complex issues typically cost more
- The fee arrangement the lawyer uses to charge for their services
How Do Property Tax Lawyers Charge for Their Services?
The most common fee arrangement is the hourly amount noted above. For some services, such as reviewing a home ownership contract, a closing, or a title search issue, a property lawyer may charge a flat fee.
If an attorney uses a retainer fee, the client will pay a set amount, similar to a deposit. The lawyer will bill against that amount as they work and, once it is used, their hourly rate will apply.
What Services Do Property Tax Lawyers Offer?
Property tax lawyers can help their clients gain an understanding of the relevant regulations and laws that will apply to their specific issue or location. A lawyer can explain how a property assessment is conducted, how the tax rates are determined in their area, and what deductions or exemptions may apply to their situation.
Property assessments usually involve an evaluation of several aspects of a property, such as:
- Its size
- Its location
- Structures located on the property
- Improvements made to the property
- Additional features that affect property value, including large gardens or pools
These assessments also take into consideration the real estate market in the area. This typically includes overall market trends and recent sales of similar properties.
Property assessments are usually done on a regular schedule, such as once a year or every few years. There are numerous issues that can affect a property’s assessed value over time, including:
- Changes in the market
- Improvements made to the property
- Changes in local zoning policies or tax laws
The results of these assessments directly impact an individual’s property tax bill. An attorney can help an individual resolve any discrepancies or disputes they have about their property assessments.
An attorney can help an individual file a property assessment dispute lawsuit if they cannot get the desired outcome working with their local tax assessor’s office. Examples of common grounds used for challenging property assessments in court include:
- Errors in the assessment process
- Inequity of how the property was assessed compared to similar properties
- The assessor’s office failed to consider all relevant information about the property
Are There Cost-Effective Alternatives To Hiring a Property Tax Lawyer?
There may be some cost-effective alternatives an individual can explore to hiring a property tax lawyer. An individual may try to resolve their issue themselves with their local tax assessor’s office.
However, many individuals do not possess the knowledge of applicable laws and procedures to properly challenge property tax issues on their own. This can result in wasted time and money for the property owner.
If an individual is considering hiring a lawyer to help them, there are steps they can take to keep their costs low, including:
- Meeting with multiple lawyers and asking about their fees
- Including the number of hours the case is expected to take into a retainer agreement
- Find attorneys who waive their consultation fee for the initial consultation
There may be free or low-cost options available in an individual’s area. Often, however, these will only provide limited services and may be on a voluntary basis.
One easy way for an individual to take advantage of a cost effective alternative is to use LegalMatch’s free attorney matching service to find lawyers in the area who offer free initial consultations.
Can You Negotiate Fees With a Property Tax Lawyer?
It may be possible to negotiate fees with a property tax lawyer. An individual can mention their budget during their initial consultation and find out whether the lawyer will be able to provide services in that budget amount.
What Questions Should You Ask a Property Tax Lawyer Before Hiring?
There are many different questions that a potential client can ask a property tax lawyer before they hire them. Such questions may include:
- How long have you been handling property tax cases?
- Who will do the work on the case, the lawyer or an assistant?
- How do you charge clients?
- How will I be updated about my case?
- What are the options for resolving my issue?
Should I Hire a Property Tax Lawyer?
If you have any type of property tax issue, question, or dispute, it is essential to consult with a property lawyer. Tax issues are often very complex and can involve multiple issues, procedures, or statutes.
Your property tax attorney can answer your questions about your property tax dispute, give you guidance on the different available options, and represent you throughout the process. In addition, your attorney can research the legal issues that are relevant to your issue.
A lawyer can be very helpful for explaining the local and state property laws in your area and how they may affect the outcome of your property dispute. If you think your local or state government has conducted an unfair property assessment on your property and that is affecting your property taxes, your lawyer can help you file an appeal with the property taxing authority or property board.
If you have to attend court proceedings or negotiations, your lawyer will represent you during all of those appearances. Even if you are only seeking advice on your situation and are interested in trying to handle it yourself, your lawyer can provide you with guidance on the process. They can provide an analysis of your chances at success without legal representation.
LegalMatch can help you find a property tax lawyer near you at no charge in as little as 15 minutes when you submit your issue on the website. You will get messages from licensed and pre-screened member property tax lawyers, which will include their educational and professional background, the fee arrangements they use, and reviews from previous clients.