This ARTICLE On Illinois Property Tax Hikes Was PUBLISHED On October 3rd, 2019
Illinois Property Tax Hikes is driving more taxpayers out of the Land of Lincoln to lower-taxed states.
- In a recent article on GCA Mortgage News, DuPage County home values dropped 24% since the Great Recession while property taxes rose 7%
- Many Illinoisans had high hopes when JB Pritzker got elected governor hoping he can fix the financial crisis
- Unfortunately, the majority of voters seem to have voter remorse
- JB Pritzker does not seem to have a solid fix
- He is not only raising existing taxes but is creating new taxes
- All taxes across the board have been hiked
- Pritzker recently approved doubling of the gas tax
- To make matters worse, Pritzker has approved pay raises to Illinois lawmakers
- The recently proposed Pritzker’s Progressive Tax is alarming to many
- Many fear an exodus of wealthy taxpayers fleeing the state to make the financial crisis worse in the state
In this article, we will cover and discuss Illinois property tax hikes and the potential aftermath to the state.
Politicians Cannot Ignore Illinois Property Tax Hikes Is The Main Reason Taxpayers Are Leaving The State
It is not just the Illinois Property Tax Hikes that is driving Illinoisans to flee the state.
- Under the Pritzker Administration, raising taxes and creating new taxes is the key to solving the budget deficit
- This policy is creating anger and resentment among taxpayers
- Lawmakers are raising taxes on everything but are not cutting spending
- Illinois recently passed a gas tax increase which doubled the gas tax
- Sales taxes, income taxes, and other taxes have all been raised
- Illinois property tax hikes is the straw that broke the camels back for Illinoisans
- Many groups have been created to protest the high taxes. From Recall Pritzker to Flee Illinois, these groups are growing daily
Others are planning on leaving the state to lower-taxed states like Indiana, Tennessee, Kentucky, Ohio, Michigan, Georgia, Florida, Texas, Colorado, Alabama, Mississippi.
Taxes In Chicago And Collar Counties
Chicago and its collar counties have the highest tax rates in the state.
- Cook County is the largest county in Illinois
- The single largest expense for Illinoisans are property taxes
- Property taxes is the single largest expense than any other consumer monthly expense with the exception of the mortgage payments in most households
- Lake County has the largest property tax rate within the Chicago collar counties
- For example, an average $100,000 homeowner in Round Lake Beach pays $8,500 in annual property taxes
- Many homeowners have seen their property taxes go up over 100% percent over the years
- Some areas, Illinois property tax hikes rose 200% to 500% with no caps
- Many neighborhoods in Chicago has seen double-digit tax increase in the past 24 months
Cook County Clerk Karen Yarbrough said that the North Side of Chicago have seen tax hikes of more than 11.5% which yields $5,400. The average homeowner in Chicago’s Suburbs pay an average of $8,500 in property taxes a year. Compare this to a similar and like home in Munster Indiana where the average homeowner pays $3,200 in annual property taxes.
Illinois Property Tax Hikes Burdening Household Income For Taxpayers
Illinois Property Tax Hikes and other heavy taxes imposed are putting big dents in household income for Illinoisans.
- This includes elderly homeowners with no mortgage loan balances and on fixed income
- Illinois property tax hikes on top of already high property taxes means less money for food, health care, and other spendings
- Many can no longer afford their homes
- Many Illinois already left the state while others are seriously considering leaving
Illinois property tax hikes is the number one reason why home values are stagnant and depreciating while home values in other states are skyrocketing. Many cross the border to Indiana to purchase a home. Others leave Illinois for lower-taxed states such as Tennessee and Florida. Both Tennessee and Florida have no state income taxes and low taxes.
What Can I Afford Versus How Much Do I Qualify
Skyrocketing property taxes is hindering many homebuyers in purchasing a home in Illinois.
- They just cannot afford an average home due to high property taxes
- They also cannot predict what the future will bring with Illinois property tax hikes since there is no caps on property taxes
- Many can easily afford the home
- However, they cannot afford if you add the high property taxes to the home purchase price
- Many real estate agents blame the lagging home sales in Illinois due to high property taxes
According to data from the Chicago Tribune, home sales in the nine-county region plunged 11.6 percent in June. This makes it the 12th straight monthly decline.
Why Are Certain States Raking In Billions In Revenue And Illinois Is On The Verge Of Bankruptcy
Illinois is in major financial trouble.
- Even after raising taxes at record high levels, the state is still broke
- Certain cities like Peoria has set up a separate property taxes just to cover the pension debt
- Almost every county in Illinois is raising property taxes
- This is creating much anger among homeowners
- Many homeowners can no longer afford a tax increase
- Others are fed up and are moving out
- The issue is that it is not just individual taxpayers that is moving out of Illinois
- Many businesses already left and countless others are thinking of living
- The Pritzker Administration cannot ignore the fact that raising taxes and implementing new taxes is not the solution in fixing Illinois
- Pritzker, a billionaire, should know better
- Business 101 states that it is not how much you make but what you spend
- Many hard working middle class wage earners who make $40,000 per year can live a comfortable stressfree life and afford a home, car, and savings if they manage their money
- However, many professional athletes who made millions are now broke because they spent more than they made
- This is the reason why Florida is raking in billions and Illinois is on the verge of bankruptcy
- Illinois property tax hikes is hindering the growth of housing in the state
Here is what the National Association of Realtors says about the economic impact by Illinois property tax hikes:
Property taxes now threaten to snuff out growth in a major sector of Illinois’ economy. Residential real estate generated $139.2 billion in economic activity in Illinois last year, or 16 percent of gross state product. When housing sales stall, ripple effects spread far beyond homeowners who see the value of a major investment—often their biggest investment—stagnate or decline. Real estate agents lose business, as do mortgage brokers and moving companies. Appliance dealers and furniture retailers move less merchandise. New home construction slows, reducing opportunities for carpenters, plumbers and electricians. It adds up to a major economic drag—the last thing growth-challenged Illinois needs.
Case Scenario On How Illinois Property Tax Hikes Plummet Home Values
We can take a case scenario of how Illinois property tax hikes plummet home values. Oak Park, a suburb of Chicago, is a community in Cook County. Average annual property taxes in Oak Park, Illinois exceeds $10,000 and had recent tax hikes in the past 24 homes. Due to high property taxes, home sales in this community dropped by more than 22% in the first half of 2019 while property values are soaring in many states. Due to high property taxes and longer than average list times, median sales prices plummeted more than 12%. Average listed homes remained on the market 40% longer than they did prior to the tax hikes. Mounting pension debts is one of the main factors for Illinois property tax hikes. Chicago has a shortfall of over $1 billion dollars in pension debt so the mayor is raising property taxes among other taxes in the City.
Reliance Of Property Taxes
Remember that it is not how much you make but what you spend. Illinois politicians are turning to raise property taxes to meet pension debt shortages, fund public schools, and other shortfalls in government departments.
Yet political leaders show no eagerness to address the root causes of a looming economic crisis—which include Illinois’ over-reliance on property taxes to fund schools and the smorgasbord of local taxing bodies sustained by the levies. Gov. J.B. Pritzker talked about property tax relief during his campaign. But since taking office he’s done nothing more than commission a task force to study the issue, as part of a deal to win support from suburban legislators for his proposed graduated income tax.
Elected officials sometimes use legislative task forces to bury issues they’d rather not deal with. But Pritzker and other Springfield bosses would be well-advised to act on any recommendations this one comes up with. Illinois can’t afford to let property taxes weigh down its economy. And politicians can’t afford to ignore growing public resentment of excessive property taxes, a powder keg that needs only a spark to explode into a full-fledged tax revolt with unpredictable consequences. Sooner or later, some opportunist will light the match. Anybody hoping to defuse the bomb had better find a way to reduce property tax bills.