Property Taxes and Population Decline in IL (Kane: apartments, townhomes)

[Hiruko]

Originally Posted by DougStark

My Apologies if this sounds harsh, but your statements are so ridiculous I'm not sure if you are serious or pulling our legs? "High property taxes are a positive bc it puts a cap on home appreciation"-- tell me you're joking!!

When property taxes are used as a wealth tax, they can be helpful in reducing speculation, keeping home prices affordable, and encouraging turnover. Many economists believe that Proposition 13 in California has contributed to the state's housing crisis because it incentivizes homeowners to remain in their homes resulting in a lack of inventory.

[zach_33]

Originally Posted by Hiruko

When property taxes are used as a wealth tax, they can be helpful in reducing speculation, keeping home prices affordable, and encouraging turnover. Many economists believe that Proposition 13 in California has contributed to the state's housing crisis because it incentivizes homeowners to remain in their homes resulting in a lack of inventory.

I wouldn't compare California"s "housing crisis" to Illinois tax strategy... that's two totally different problems.

[zach_33]

Originally Posted by DougStark

My Apologies if this sounds harsh, but your statements are so ridiculous I'm not sure if you are serious or pulling our legs? "High property taxes are a positive bc it puts a cap on home appreciation"-- tell me you're joking!!

Agreed, it is a bit strange. I think the OP's basic question is valid.

[flamadiddle]

Just got my property tax bill for this year. Went up 1%. Not a big deal, but it's already high so it is what it is...

[Hiruko]

Originally Posted by zach_33

I wouldn't compare California"s "housing crisis" to Illinois tax strategy... that's two totally different problems.

I wasn't commenting about any 'problems'. Illinois property values are depressed, in part due to high property tax rates. California property values are inflated, in part due to artificially low property taxes and an arrangement that encourages people to hold onto properties.

[ToriaT]

Here in Wheaton homes are selling well and there are still new ones going up. I have not noticed a decline in home prices. I think Chicago will always be desirable for many reasons. True we do have very high property taxes but Illinois does not tax pensions. I would not buy in exurbia, but one of the more popular suburbs.

[Grlzrl]

Originally Posted by flamadiddle

Just got my property tax bill for this year. Went up 1%. Not a big deal, but it's already high so it is what it is...

You did not just get your property tax bill. They don't go out until later in the year. What you DID get was your new assessment. Yes, that may have gone up 1%. No big deal. But even if your assessment remains flat, they can increase the rate to pretty much whatever they want and you can't do a thing about that.

[spdiesel21]

The State migration issue has compounded substantially in the last 7 years. It has to be reversed by the state soon or it will meet a critical level. The thought process is people are migrating at retirement ages to better weather in states like Arizona or Florida. The reality is data shared on US Census is providing ages 29-55 demographics are leaving to neighboring states with more lenient tax structures. The population decrease in 2011 when the state taxes expired and then subsequently were raised in 2017 to 4.95% is when the compounding effect really took off. So many ideas and plans have been implemented but ineffective because of the elephant in the room. The state pension deficit that is out of control and property taxes. Until steps are taken to amend the states constitution that protect its current structure nothing can be done to balance the budget.

But, if they take a page out of Arizona's play book when faced with the same issues they were able to amend some of the unsustainable benefits by amending their laws and were able to climb out of a fiscal nightmare of being billions of dollars in the red. Arizona was at 53% funding and $1.7 Billion dollars in debt with the long-term solvency of the pension in serious question.

Liljenquist,D (2017) stated “The reform, which enrolls new employees in a modern retirement plan with 100 percent vesting within three years of service and more retirement planning choices, will help ensure the long-term solvency of the pension system while saving the state billions of dollars.”

For the state to have any chance of decreasing migrating numbers the changes in pension reform and tax restructuring will be the only way the state can attract a future labor force of companies that can stimulate tax revenue to finally start balancing the budget and look at growth rather then continual bleeding.

Liljenquist, D (2017). Pension Reform Comes in Many Shapes and Sizes. Forbes

[Grlzrl]

Originally Posted by spdiesel21

The State migration issue has compounded substantially in the last 7 years. It has to be reversed by the state soon or it will meet a critical level. The thought process is people are migrating at retirement ages to better weather in states like Arizona or Florida. The reality is data shared on US Census is providing ages 29-55 demographics are leaving to neighboring states with more lenient tax structures. The population decrease in 2011 when the state taxes expired and then subsequently were raised in 2017 to 4.95% is when the compounding effect really took off. So many ideas and plans have been implemented but ineffective because of the elephant in the room. The state pension deficit that is out of control and property taxes. Until steps are taken to amend the states constitution that protect its current structure nothing can be done to balance the budget.

But, if they take a page out of Arizona's play book when faced with the same issues they were able to amend some of the unsustainable benefits by amending their laws and were able to climb out of a fiscal nightmare of being billions of dollars in the red. Arizona was at 53% funding and $1.7 Billion dollars in debt with the long-term solvency of the pension in serious question.

Liljenquist,D (2017) stated “The reform, which enrolls new employees in a modern retirement plan with 100 percent vesting within three years of service and more retirement planning choices, will help ensure the long-term solvency of the pension system while saving the state billions of dollars.”

For the state to have any chance of decreasing migrating numbers the changes in pension reform and tax restructuring will be the only way the state can attract a future labor force of companies that can stimulate tax revenue to finally start balancing the budget and look at growth rather then continual bleeding.

Liljenquist, D (2017). Pension Reform Comes in Many Shapes and Sizes. Forbes

I see no will to amend the current pension structure.

[wjj]

Originally Posted by Grlzrl

You did not just get your property tax bill. They don't go out until later in the year. What you DID get was your new assessment. Yes, that may have gone up 1%. No big deal. But even if your assessment remains flat, they can increase the rate to pretty much whatever they want and you can't do a thing about that.

Depends on where you live. I got my RE tax bill in Lake County last week.