How to Choose a Property Tax Protest Company in Texas

The best property tax protest company for you is a licensed firm that charges only when it saves you money, calculates its fee on the savings you actually receive, builds a real evidence case for every property, and has someone experienced handle your hearing. Here is how to check each of those before you sign anything.

1. Make sure they are licensed

Texas requires anyone who represents property owners for pay to be registered as a property tax consultant with the Texas Department of Licensing and Regulation (TDLR), with limited exceptions such as licensed attorneys and CPAs. Registration means the consultant passed the state exam, completes continuing education, and answers to a state regulator if something goes wrong.

Ask for the license number of the person who will work your account, then look it up on the TDLR website. A company may be registered while the people doing the work are not, so check the individual too.

2. Understand exactly how the fee is calculated

Most Texas firms work on contingency: no savings, no fee. The percentage varies, commonly somewhere between 25% and 50% of the tax savings. The percentage is only half of the picture. Ask these questions:

• Savings on what value? The fee should be based on the tax you actually save, not on a reduction in a market value that never reaches your bill.
• How are homestead-capped homes billed? If your taxable value is limited by the 10% homestead cap, a market value reduction may save you less than it looks. A fair firm bills on the reduction in the value you are taxed on.
• Are there other fees? Some firms add a flat enrollment fee, a minimum fee, or a charge for hearings. Get every fee in writing.
• When is the invoice due? Most firms bill after the tax rates are set in the fall, once the savings can be calculated.

3. Ask who handles your hearing

Many protests settle at the informal review with the appraisal district. The ones that do not settle go to the Appraisal Review Board, and that hearing is where experience matters most. High-volume firms often send whoever is available, or accept the district's first offer to keep the volume moving.

Ask whether a licensed consultant reviews your account before the hearing, whether they will reject a weak informal offer, and how often they take cases to the board instead of settling.

4. Look at how they build the case

A strong protest uses more than one argument. Texas law lets an owner protest a value that is above market value, and separately a value that is unequal compared with similar properties (Texas Tax Code 41.43). The firms that win consistently do both:

• Recent sales of comparable properties, adjusted for size, age, condition and location.
• An equity comparison against similar properties the district valued lower.
• Condition and location issues the district missed, such as needed repairs, a busy road, or a commercial neighbor.
• For commercial property, income and expense data and the right capitalization rate.

Ask what evidence they prepared for a property like yours last year.

5. Read the contract

Most firms use two documents: the state Appointment of Agent form, which lets them act for you with the appraisal district, and their own representation agreement, which sets the fee. Before you sign, check:

• How long the agreement lasts and how to cancel it.
• Whether it renews automatically each year. Ongoing enrollment is useful, as long as cancelling is simple.
• What happens if you sell the property.
• Whether you can still talk to the district yourself.

6. Large firm, boutique firm, or do it yourself

7. Check reviews and track record

Read Google reviews for specifics: did the firm explain the result, answer questions, and send the invoice the client expected? Ask how many years the firm has been in business, how many counties it covers, and what kind of results it gets for properties like yours.

Questions to ask before you sign

1. What is your TDLR license number, and who will work my account?
2. What percentage do you charge, and is it based on the tax I actually save?
3. How do you bill for a homestead-capped home?
4. Are there any fees besides the contingency fee?
5. Who represents me at the Appraisal Review Board?
6. What evidence would you use for a property like mine?
7. How do I cancel?