retired being tax out homes

[waldo]

Get out of this state. It is $13 billion in debt with no plan to get out. The lavish entitlement programs and unionization of its private and public employees is coming home to roost.

[AuDiBelle]

The income tax rate may be lower than many other states, but the property taxes here are insane. This is exactly why I would like to move to a non-unionized state. Unfunded pensions are going to cripple our economy. We're already $13 billion in debt and are second only to California in our state budget woes.

[HeadedWest]

Originally Posted by middle-aged mom

Underfunded pension plans are challenging most municipalities, not too different than the private sector.

Because the pensions are so generous and retirement ages so young, the problem of public pension costs is VERY much more than in the private sector.

[debbie at bouontiful]

how will this affect a retired person. We are thinking of moving back up by Galena and will pay cash for house. Is there any DEAL whatsoever for retirees in the property tax area? I remember the high property taxes but then at time didn't get to emotional over it. Now, that I've been in a very low property tax state it is harder to go back. Our problem is we love the area and have lots of friends there.

Should I figure 2000 for every 100,000 dollar house?

[linicx]

I think IL treats its seniors better than other states. Low income seniors are offered reduced license plate fees, a little money to help defray the cost of medicine, real estate tax freeze, reduction in taxes for homeowners, veterans retired and active, long term medical issues, as well as age. Seniors are also elegible for help with food, rent, medical, utilities, long term care, and in some cases home repair. Also. if you bought a house before the housing bust, and it has devalued because of it, AND you can prove it with an appraisal from a licensed home appraiser, you can apply to county for a one-time permanent tax reduiction, and also a tax freeze at the same time. Your taxes will not raise until you sell - or your situation changes. There is a cavaeat. It is not automatic. If you do not apply you will not get it. There is a lot of paperwork involved, PLUS paperwork that has to be re-submitted every year.

[Bideshi]

Originally Posted by 1AngryTaxPayer

The property tax can be much higher than the mortgage ever was for many elderly.

And they can keep on raising the taxes until they squeeze you out of your property. It's an old game.

[debbie at bouontiful]

I wouldn't qualify for help as a senior. I just do not want to pay 6000 a year in property taxes for a 300,000 house which isn't big bucks in the the Galena area. Love the area and always thought I would move back at retirement but that is 500 just property taxes on retirment income. My retirement is decent but that is a bit much. I intend on paying cash for a house and the home I would sell is worth more but your taxes are a bit much for the stomach.

[hoffdano]

Originally Posted by linicx

Every state I lived in collected real estate taxes for schools. The trade off in the low tax states is poor heath services unless you live near a large city - and even then it is no guarantee. IL state income tax is a flat 3%. groceries are 1% and house/car insurance is cheper than Missouri. IL has good senior services and senior tax breaks for over 65. Handicapped and military get tax breaks too.
When I moved back to Illinois for medical care, I knew exactly what I was getting into and I have not been disappointed in any way. You need to know what you want and where to find it becore you buy the pig in a poke. .

Didn't income tax just get raised from 3% to 5%?

[zclipse]

Originally Posted by hoffdano

Didn't income tax just get raised from 3% to 5%?

Yes, effective Jan 2011, state income tax is at 5%!
Click here for additional information

[Slinkycat]

Originally Posted by snapper54

Here's a new point of contention! Why with the market dropping for the last 3 yrs., would the county keeps raising the assessed value of my home.

The municipal bond market collapse is what is causing property taxes to skyrocket, Those interest payments have gone up because the bonds are worth less, and cities have to pay the bankers and Buffets of Finance increasing more taxpayer loot to keep up with the interest payments. Other things like paying government workers are getting crowded out, so property taxes go up to compensate. I know that people like to point their fingers at pensioners, because that is what they can see with their own two eyes, the retired ex government worker living quietly in their homes on their pensions. They don't see the racketeering and crap that goes on in the financial markets, or even read the economic news, so they don't put the blame where it belongs. The truth is, your property taxes will keep going up no matter what. The pensioners will get blamed, because they are a convenient scapegoat, and blaming them takes the focus on the real cause, the collapsed muni market and all the fat cats soaking the cities and states. Pensions will lose by hook or crook eventually, and I will bet you my shirt that your property taxes will continue going up even then to pay the finance sharks.