Deceptive Marketing Tactics in Property Tax Services
In a recent development that has raised eyebrows across North Texas, a property tax company, Ownwell, has been employing questionable marketing strategies to entice homeowners. The Austin-based company offers to file homestead designation paperwork at no cost. However, the catch lies in their service agreement, which states that they will collect a 25% fee on any savings derived from homestead exemptions.
The implications of this are significant, especially since the state property tax law now allows for an increased homestead exemption on primary residences, up from $40,000 to $100,000. While this could mean considerable savings for homeowners, it is important to note that filing for a homestead exemption is a service that can often be done for free and, in many counties, may be automatically applied to primary residences.
Watchdog Alert: The Watchdog has issued a warning to taxpayers in Texas, emphasizing that homeowners should not be misled by solicitations requiring a fee to file for homestead exemptions. The Kaufman County Appraisal District has taken to its website to alert residents of this scam, reminding them that filing for a homestead exemption is free of charge.
It’s essential for homeowners to verify whether they have the exemption by checking their property tax notices or visiting their appraisal district’s website. The process is straightforward and typically does not warrant the involvement of a third party that charges a fee.
Despite the controversy surrounding its practices, Ownwell’s approach is not illegal but has been criticized for not aligning with good business practices. Competing property tax companies have expressed their dissatisfaction with Ownwell’s tactics to The Watchdog. Moreover, Ownwell’s claim of an A+ rating from the Better Business Bureau has been revoked due to non-adherence to BBB standards, raising further concerns about the company’s credibility.
Industry professionals like Glenn Goodrich, owner of PropertyTax.io, and Will Wiggins of North Texas Property Tax Services have voiced their opinions on the matter. They suggest that charging for exemption services is only justifiable if an exemption is wrongfully denied and requires a protest. Goodrich points out that most exemptions are accepted without protest, and Wiggins has never encountered an Ownwell agent in hearing rooms.
Homeowners are advised to ensure they have their homestead exemptions in place and to be wary of companies like Ownwell that promise savings and charge fees for services that are typically offered for free. As the 2024 property tax season approaches, it is crucial for taxpayers to stay informed and avoid falling prey to deceptive marketing practices.
For those seeking guidance on handling appraisal protests, resources are available through various consumer advocacy groups and industry experts who offer free assistance and advice.
