Illinois now has nation’s second highest property taxes
2:09 AM 01/04/2014
Illinois is the home of deep dish pizza, Chicago machine politicians and the nation’s second highest property taxes, reports Chicago Magazine.
Property taxes in the Midwestern state average about 2.28 percent of a home’s value. The only state with a higher property tax is New Jersey, which collects 2.32 percent of a home’s value in taxes. Hawaii has the nation’s lowest property taxes, only taxing homeowners 0.27 percent.
Local governments in Illinois have continuously placed higher dues on landowners since the early 2000s. Back in 2005, the state had the 7th highest property taxes. Two years later it ranked sixth and maintained that spot until 2011.
Brian Costin of the Illinois Policy Institute told Chicago Magazine, “New Jersey is going up at a slightly slower rate than Illinois…so in a couple more years like this, we could be number one. But it’s not a number one that you want to be.”
Chicago homeowners are also suffering from low home prices. During the recession the Windy City’s home values fell further than most urban areas and now it is recovering at a slower pace. At the same time, Chicago’s taxing bodies are doing the most they can under the law to increase property taxes every year.
Illinois residents are not necessarily paying more total dollars in property taxes. However, because home prices are still down and tax rates have increased, the government is collecting a higher share of a individual assets.
The booming real estate economy in the early 2000s gave people a false sense of security, says Costin.
“They accepted increases in property taxes because they thought, ‘I’m making out really well with the value of my home,’” he explained to Chicago Magazine.
But he says now the state’s “property taxes have gotten so high that it’s having a negative effect on our housing market.”
Illinois residents are using their feet to communicate how they feel about the spiked fees. A significant number of individuals are relocating to neighboring Indiana, where property taxes are less than half the rates in Illinois. Home prices are also lower, making the state even more attractive for home buyers.
Senior citizens and individuals without kids are especially considering the option of moving to a more ta- friendly state so that they do not have to pay steep property taxes — two-thirds of which goes to local public schools.
According to a recent report by the moving company Allied Van Lines, there appears to be a correlation between a state’s property tax rate and a state’s outbound residents. The study found that Illinois had the second highest rate of residents relocating to other states. The only state with a higher number of movers? New Jersey — the state with the nation’s highest property taxes.