23 Billion Dollars
That number, the estimated amount of money that is overpaid by residential homeowners each year. This amount is ignored by the government and sadly, most people simply don’t understand how the assessment world is wrought with error so this number will likely go unchecked.
By simple factoring, the average state takes $462,000,000 from its taxpayers. We know that some states are much higher because of tax rates, population, and home values but this is just an example average.
If we use a state like Illinois, we know there are approximately 3,850,000 owner-occupied homes and with just 50% of the homes overassessed by 20%, the numbers are staggering. An average owner-occupied home valued at $170,000 with a property tax rate of 8% would have a tax bill of about $4,053.00. By reducing that assessment by 20%, that home-owner would save $810.00. Using those average savings and multiplying those savings by 1,925,000 owner-occupied homes that are likely over-assessed, would amount to $1,559,250,00 in potential savings statewide.
Could you be saving some money in the near future?