The Truth Behind Advertised Fees
California Property Tax Associates charges 50% of the first full fiscal year’s savings and/or refunds plus 50% of any prior year’s savings and/or refunds. We have heard from some prospective clients that our fee sounds high, and, we realize that on its face it does appear high. However, there needs to be a clear understanding of how fees can be charged and what those fees can be based on to make an adequate comparison between Property Tax Reduction Agencies.

The Difference Between Other States
First of all, you may own other property in other states. With those properties you may be under contract with a property tax reduction agency at a rate closer to 25%. The reason the fee is lower in other states is really rather simple: the property tax rate is substantially higher than California. In California, the property tax rate ranges from 1.0% to 1.4% with the average being 1.1%. In other states, Texas for example, the property tax rate is much higher at around 3.0%. Very basically speaking, 25% of the savings in Texas is equivalent in straight dollars to 75% of the savings in California. So for less money, CAPTA performs the same tasks required in Texas to obtain the same reduction in assessed value.

The Competition's ACTUAL Fees
Next, competitors in California may charge 40 to 45% for their services. Without getting into quality of work and CAPTA’s superiority, the way in which these competitors assess their fee is completely different than CAPTA. CAPTA works off the principle that the County Assessor’s office will set your value at the reduced value achieved the year before. (It is entirely possible the County may assess your property at its trended base year value, the purchase price/initial assessment plus yearly inflation adjustments, regardless of prior reductions). Therefore, if your property was initially assessed at $2,500,000 and CAPTA reduces it to $1,500,000 you would save roughly $11,600 in year one, which CAPTA is entitled to 50% of - $5,800. In year two, the county carries $1,500,000 forward as your assessed value and subsequently, CAPTA is able to reduce that further to $1,000,000. This second year, you would save approximately $16,500 (the difference in taxes from $2,500,000 to $1,000,000), and CAPTA would be entitled to $3,065 – NOT $8,250. However, with many of our California competitors, you will be charged a 45% fee based on the difference from the trended base year value ($2,500,000++) as such: $5,220 for year one, and $8,553 for year two for a total of $13,773 as opposed to the total fee CAPTA charges: $8,865 for both years. You can see the clear difference between CAPTA and the "other guys" below:

Fees for California property tax reduction


The Bottom Line: Why Pay More?
Once you’ve understood this, we cannot stress enough that you will not find a better Property Tax Consulting Firm to represent you than CAPTA. After all, as our mission statement says we are here to “Enforce our Clients' Rights under Proposition 13 and ensure they never pay more property tax than what they are required to pay after applying every conceivable reduction strategy allowed by law.” We are not happy unless we know you are paying only your fair share in property taxes. Accordingly, we understand this will not happen by simply accepting the bone the Assessor’s office is sometimes willing to throw to keep Agents from pursuing the lowest possible value.
Pay less for more savings with CAPTA – it just makes sense.

 

 

 

*Each County is different and may not carry forward the prior year reductions, or they may hear the case after the following year values have been set. In the example above, it is assumed the 1st year reduced value is carried forward into future years.

 
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