For Illinoisans, it can seem as though the only thing growing
faster than property taxes is the mound of discouraging analyses underscoring
the weight of their tax burden.
In a ranking of the property tax burden in all 50 states and the District of
Columbia, finance website WalletHub placed the Land of Lincoln at 50 out of 51,
behind only New Jersey.
However, many Illinoisans don’t need to be persuaded that the property tax
burden they’ve been toiling under has swelled beyond reason. Outmigration data
make clear that Illinoisans have been conducting their own state-by-state
comparisons. And too often, the conclusions they’ve arrived at have been drawn
with skid marks, as they race across state lines.
Illinois’ unwelcome property tax climate has been years in the making. For too
long, efforts to paper over fiscal woes have been tackled by continually upping
the ante on property taxes – absent consideration for what taxpayers can afford.
From 2008-2015, average property taxes paid grew six times faster than household
incomes.
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According to WalletHub’s analysis of U.S. Census
Bureau data, the head of an Illinois household with a home listed at
the state’s median value, or $174,800, pays an annual effective rate
of 2.32 percent. In other words, this household can expect to shell
out $4,058 in property taxes each year. Only New Jersey’s effective
tax rate of 2.4 percent ranked higher than Illinois’.
While Illinoisans have come to expect property
taxes to climb, trends in home prices have proven less reliable.
Government data suggest home prices in Illinois are still down 10
percent compared with 2006, while over the same time, property tax
bills have gone up more than 51 percent.
Research suggests these growing property tax bills, coupled with
discouraging outmigration patterns, threaten to put downward
pressure on home prices.
Until lawmakers address the causes driving up the price tag on basic
governance, homeowners should not expect their property tax bills to
drop.
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