How it works in Connecticut:
Our services are rendered on a retainer plus contingency fee basis and based upon a percentage of any real estate tax savings achieved from our appeals of your assessments, with an initial non-refundable retainer payable at the time of engagement for each assignment. The retainer fee is intended to cover our review of each individual property as we determine if there is a case worth bringing forward to appeal. On occasion, the circumstances are such that an appeal is not advisable or economically practical, but you will be able to make that judgment on a property by property basis after we prepared our initial assessment for your consideration. The retainer fees for commercial property can be as low as $1,000 non-refundable retainer per property. This fee established based upon a review of the size, value, asset type and complexity of the property as improved. Contingent fee programs are formulated in general terms as either:
50% of the first year tax savings
Sample Fee Calculations:
- or -
33.33% of the first AND second year tax savings
- or -
25% of the first three years' tax savings
If your total property assessment at the time of the appeal is based upon a Full Market Value estimate as of October 1, 2008 of $1,428,571, then the Assessment at that time is 70% of that figure or $1,000,000. This is the baseline for our appeal.
If we successfully reduce the Assessment by $200,000, your revised Assessment would be $800,000.
Assuming a Tax or Mil Rate of 30.0 mils:
R.E. Taxes BEFORE the appeal would be $30,000/year ($1,000,000 x 0.030)
R.E. Taxes AFTER the appeal would be $24,000/year ($800,000 x 0.030)
to you is $6,000/year.
The fee is a percentage of this tax savings:50% Option: FIFTY PERCENT (50%) of the savings
for ONE YEAR, the fee would be $3,000.
33.33% Option: THIRTY THREE & ONE THIRD PERCENT (33.33%) of the savings for 2 years, the fee would be the total of $2,000 the first year ($6000 saving x 33.33%) PLUS $2,000 the second year (This example assumes the tax rate did not increase. If the tax rate increases, then the fee would be relative to any change in the mil rate as the fee is based upon the actual R.E. Tax in the applicable year).
25% option is calculated similarly to 33.33% but calculated on the initial year of savings and the two subsequent years based upon the tax rate as established in each of the subsequent years.
The payment is calculated and due when the mil rate is set by the town in the first year and at the same time the following year. The mil rate (Tax rate) in Connecticut taxing districts (Municipal) is typically set in between April and May.
Client, remains responsible for any out of pocket expenses that may occur . Client retains discretion as to any out of pocket expenses with advance knowledge prior to incurring any such expenses. Some typical expenses in commercial property assessment appeal may be legal fees to further the appeal in court if not successful at the municipal Board of Appeals level, should one decide to avail themselves of that option; third party appraisal reporting, if likely to add value of to position better with negotiations, etc.