retired being tax out homes (Chicago, McHenry: sales, real estate, mortgage) - Illinois (IL) - City-Data Forum

snapper54 · 02-01-2010, 10:56 AM

The way the tax system is set up in IL is forcing the elderly to sell the home they worked an entire life time for, when they retire. Most state are set up to pay for their school by getting taxes from Income tax, then sales taxes, and then the balance from relastate taxes. In IL the majority comes from relastate taxes (more than 90%). So, when you retire living in the house you sent your life working for, and it is payed off, you end up struggling to pay the outragious relastate taxes of IL. If it was structure like most states you would pay a little more income tax and sales tax while you were working. This would enable you to afford to keep your home when you retire. I lived in another state and owned a home there. A home of equal value had taxes 1/5 of IL. Maybe there's a better idea out there, but I still think something has to be done.

Avengerfire · 02-01-2010, 11:57 AM

Everybody is having a hard time with being taxed to death. It is not something only older people are experiencing.

jlawrence01 · 02-01-2010, 08:21 PM

Quote:

Originally Posted by snapper54

I lived in another state and owned a home there. A home of equal value had taxes 1/5 of IL. Maybe there's a better idea out there, but I still think something has to be done.

A great thing about this country is that if you are not happy, you can vote the rascals out. OR you can move back to the state with the lower taxes.

Personally, the taxes I pay in the Chicago suburbs are SIGNIFICANTLY less than the taxes I paid in either the Detroit or Cleveland suburbs.

mdand3boys · 02-02-2010, 02:02 AM

Many counties in Illinois have senior citizen freezes and exemptions. Check the county you are in for the particulars.

debbie at bouontiful · 02-02-2010, 06:33 AM

IL. is pretty bad with real estate taxes. I've lived in several States(moved with husband's job) and IL had the highest property taxes. I would love to go back there for retirement. We're a few years at the most out but the property taxes is the problem. I sold a house there (Stockton, Il) and bought a equal price property here in OK and my taxes are many many and many percentages points lower. I am now use to the lower taxes and it seems unreal to me to go up as high as IL.

Now many will say you get what you pay for. Maybe right but if all your retires can't afford to live there then you have a real problem. Our income taxes here are higher but like you said we are working and it doesn't play in too much on our living expenses. Now, when we retire, our income will be a lot less and I am not sure I want to pay taxes that amount to a mortgage in retirement or can as that goes.

snapper54 · 02-02-2010, 06:52 AM

I'm not retired yet, I'm still in the tax paying pool. I'm just saying that paying for schools ,it needs to be spread across more than just real astate taxes. This is how IL pays for schools. I've seen elderly have to move from the home that it took an entire life time to aquire. It would just make it a lot easier to stay in their home. I just read and article about IL being the highest in the midwest. It's what I've seen happen that made me bring this issue up.

snapper54 · 02-02-2010, 07:41 AM

I live in south west subs. I would love to stay in IL when I retire.I have even check out southern IL. There's a little difference because the same home would be less money, but it is still to high. I think S. IL one of pretties places in the country. It would be one of my choices. If you go across the river into KY the same home is 60% less. that also makes it easier to keep your home you've lived in.

1AngryTaxPayer · 02-02-2010, 07:49 AM

Quote:

Originally Posted by Avengerfire

Everybody is having a hard time with being taxed to death. It is not something only older people are experiencing.

CA has prop 13 because of this. When someone on a fixed income gets their house "valued" by the govt at the market rate the property tax can indeed force them to sell.

The property tax can be much higher than the mortgage ever was for many elderly. Just think if they taxed your cars and other belongings that way.

middle-aged mom · 02-02-2010, 08:26 AM

We pay the teachers through property taxes. All teachers have to give some of that money to the NEA, IEA and BEA. These unions then take that money and give it to politicians to make laws to make more moneyoff the tax payer. Mandates and teacher protections are quietly steamrolled through the legislator because our elected representatives know we are not paying attention or if we are, most are not willing to do anything other than bringing it to an internet forum. The result is the union has gained an extraordinary amount of power.

There are senior exemptions and freezes that minimize the property tax burden on seniors. The consequences of 75 million baby boomers hitting 65, over the next 20 years is astounding in terms of the consequences.

jlawrence01 · 02-02-2010, 11:10 AM

Quote:

Originally Posted by middle-aged mom

There are senior exemptions and freezes that minimize the property tax burden on seniors. The consequences of 75 million baby boomers hitting 65, over the next 20 years is astounding in terms of the consequences.

The McHenry Co. Treasurer actually holds meetings telling people of the 10-12 different programs that can reduce your property taxes. I do not think that he is popular among the other politicians but he runs unopposed most of the time.