Face it: Property taxes are forcing Illinoisans out of their homes

Discussion in 'Budget & Taxes' started by MolonLabe2009, Oct 14, 2016.

  1. MolonLabe2009

    MolonLabe2009 Well-Known Member

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    One of the few positive things about California is the fact that the people decades ago ( 1978 ) voted for Proposition 13. Proposition 13 basically says that the ad valorem tax on real property shall not exceed one percent.

    My Mom and Dad bought their house in Anaheim, California in 1959 on a half-acre lot for $18,500. They paid off the mortgage in the early 80's.

    Today, the property is rated R3 (multi-residential) and is worth $1.2 million.

    They are in their early 80's and are on Social Security.

    Could you imagine the property tax they would be paying today if it weren't for Prop 13?

    They would be forced to sell it.

    Face it: Property taxes are forcing Illinoisans out of their homes
     
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  2. Steve N

    Steve N Banned Donor

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    Some folks in California tried to repeal Prop 13 many times. Had they had done so, a widowed grandma living on Social Security who who bought a $50k house in the 60's would probably now be sitting on a home worth $350-400k and the taxes would kill her. My family lives in Jersey and they say the property taxes are insane, worse than California. And they wonder why communities rot and fester when the money leaves.
     
  3. Texas Republican

    Texas Republican Well-Known Member

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    My parents bought a house in Connecticut in 1977. Their monthly property tax bill was always more than the mortgage.
     
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  4. Texan

    Texan Well-Known Member

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    I'm never moving from this state.
     
  5. Angrytaxpayer

    Angrytaxpayer Banned

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    Long Island, NY is no different. I pay $11,000 for a 1500 square foot home. And as much as I love the police the school taxes and police taxes are out of control. There was an article in Newsday how LI's middle class is shrinking. No sh!t sherlock. We also have a bad illegal immigration and gang problem as well. Look up Brentwood, NY.

    - - - Updated - - -

    If I could deal with the heat I would move there.
     
  6. Cubed

    Cubed Well-Known Member Past Donor

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    Daaamn. I have a 14-1500 sq ft townhouse that I paid 300k for and my property tax bill is about $1800. I feel for you guys :(

    Sent from my Nexus 6P using Tapatalk
     
  7. Texan

    Texan Well-Known Member

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    I have a 4/2/2 with a 2 car carport on 1 acre. I payed $155k and my school and property taxes are about $4k/year. Mortgage payment with taxes and insurance is $1400/month. And by property tax, that's only on real estate value. They don't inventory my belongings every year. No income tax and sales tax is limited to 8.25%. Groceries and medicine are exempt from sales tax.
     
  8. Darkbane

    Darkbane Banned

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    I'm not sure this is a bad thing... but I have a LOT of questions that were unanswered in this article that did not dive into the details at all... first, what was the percentage rate when they bought their home originally? has that rate been increased, or is it still at the same percentage? I have no doubt that politicians likely added a tenth of a percent here and there over a 13 year period (since they cite 2013 taxes but live there for 16 years), but since I just went and looked, the current percentage is roughly 2% for lake county illinois... that means their current house in order to pay $15,000 a year in 2013 must have been valued at $750,000 in 2013... notice how the story only talks about purchase price of $227,000 about 16 years ago... I would say in 13 years to receive TRIPLE the value of your home, is a stunning feat, and they have little to complain about...

    see we're already unraveling this "taxes are the reason we're leaving" and turning it into "our property VALUE rose too quickly and we're leaving as a result because we can't afford the taxes on that immense increase in value"... I think its no mystery on this website I am a HUGE fan of property taxes being the ultimate equalizer in society, it helps the poor and punishes the wealthy, it also serves to moderate and slow down excessive growth as well as excessive drops in value, as people won't be so quick to move in and out of areas, and when they do, they capitalize on either end of that spectrum and rebalance the growth or fall of the areas...

    so this isn't a case of politicians taxing them out of their homes like I was wondering, its roughly 2% for lake country illinois, this is merely a case of this becoming THEE destination for living, as reflected by their $227,000 home becoming worth $750,000 in a mere 13 year period... thats a PHENOMENAL rate of return and they should sell immediately to capitalize on those gains, and then use that as a stepping stone for their future financial wealth... I mean lets run some numbers guys... I love numbers...

    $750,000 - commission and previous mortgage = $550,000

    now I would advise them to take the $50,000 and use it as a down payment and go buy a new home with another 4% mortgage since rates are so low... take the other $500,000 of actualized gains, and invest that into the stock market now... how many people in 13 years make a profit of $500,000 from just about anything? and you want me to feel sorry for them because they don't want to do whats financially responsible, which is to sell and get the hell out of dodge and start over someplace else? this is literally an example of a gift horse they are looking in the mouth, and saying, ehhh, I don't want a pony anymore after I asked for a pony... capitalize on the gains!!!

    how many of you feel sorry for them now that you realize the story FAILED to mention the current home value, and intentionally was deceptive as presenting that value, and they merely talked about how much they purchased the home for originally? don't you find that insanely misleading and deceptive practice to be quite dishonest? these people hit the jackpot, and they are complaining, shut your mouths, sell your property, and take the gains while you can, because once illinois goes bankrupt, they will be jacking that 2% up to 3% or they will do what they are doing with all the other taxes and slowly hiking them up... I mean whats the sales tax in chicago up to 10% now?

    but damn, why is anyone feeling sorry for these people who are being financially irresponsible, you have a tornado of profit you're sitting on, capitalize on it already!!!

    P.S. for the california example using a property value of $1,200,000 and a rate of 1% I guess, thats $12,000 a year in taxes, would $24,000 really change all that much? assuming it went to 2% like lake county illinois? but it would likely be a FAR lower rate because of the immense value of property in california they likely could do away with most of their taxes if they simply went to 1.5% and your parents had to pay $18,000 a year... are you telling me they can afford $12,000 but not $18,000 a year? is that their breaking point? if you tell me thats their breaking point, I'm going to ask you, why on earth would they still own a property valued at $1,200,000 if thats the case...
     
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  9. Louisiana75

    Louisiana75 Well-Known Member Past Donor

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    How do people afford to pay those taxes? That's crazy. My home and 40 acres has a years property tax bill of $555.
     
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  10. atheiststories

    atheiststories Active Member

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    I think the tax bill is part of the deal. The problem is not that the bill is too high. It's that they don't make enough money. I understand wanting to live in the house that you want, but you need to be able to afford it. The only reason this is a story is because you think the government might capitulate. You would never complain to a mortgage company or a home owner that your house prices are too high. You would not complain to insurance companies that your rate is too high.
     
  11. danielpalos

    danielpalos Banned

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    Why are property owners facing such high tax bills; doesn't infrastructure make it more valuable and doesn't infrastructure, also generate revenue where applicable, even if only by providing public accommodation and generating revenue through other forms of taxation.

    The right can only lower taxes so much.

    Yet, the right insists on "trampling" the concept of natural rights and "throwing it under the bus", whenever it is not about guns.

    When is the right going to practice what they preach about unalienable rights and lower taxes, and ending the red tape of regulation, when it comes to our useless and exorbitantly expensive, War on Drugs?

    In California, medical marijuana taxes are approaching the one billion dollar mark.

    Legalization of Commerce in that controversial form of private property, could surpass the national Porn sector, for revenue generation.
     
  12. MolonLabe2009

    MolonLabe2009 Well-Known Member

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    Drrrruuuugggssss!!!!
     
  13. danielpalos

    danielpalos Banned

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    nothing but appeals to emotions instead of reason, even without Drugs, goode Person on the fantastical right wing?

    The US government is "the largest purchaser in the world’s largest drug market"--http://healthcareforamericanow.org/2013/04/08/pharma-711-billion-profits-price-gouging-seniors/

    When is the right going to practice what they preach about unalienable rights and lower taxes, and ending the red tape of regulation, when it comes to our useless and exorbitantly expensive, War on Drugs?

    In California, medical marijuana taxes are approaching the one billion dollar mark.

    Legalization of Commerce in that controversial form of private property, could surpass the national Porn sector, for revenue generation.

    - - - Updated - - -

    nothing but appeals to emotions instead of reason, even without Drugs, goode Person on the fantastical right wing?

    The US government is "the largest purchaser in the worldÂ’s largest drug market"--http://healthcareforamericanow.org/2013/04/08/pharma-711-billion-profits-price-gouging-seniors/

    When is the right going to practice what they preach about unalienable rights and lower taxes, and ending the red tape of regulation, when it comes to our useless and exorbitantly expensive, War on Drugs?

    In California, medical marijuana taxes are approaching the one billion dollar mark.

    Legalization of Commerce in that controversial form of private property, could surpass the national Porn sector, for revenue generation.
     
  14. Texas Republican

    Texas Republican Well-Known Member

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    Paying taxes is the price we pay to live in a civilized society.

    If that means we end up selling our homes, living in our cars, and eating cat food, so be it.
     
  15. straight ahead

    straight ahead Well-Known Member

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    At my rate if I had 40 acres my taxes would be almost $50 million.
     
  16. APACHERAT

    APACHERAT Well-Known Member Past Donor

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    If it weren't for Prop 13, your parents would be on the streets today. Most likely living at the Santa Anna Civic Center.

    I remember back in 1978 when retired people in California were losing their homes by the tens of thousands every year because they couldn't pay their property taxes. The Democrats kept raising the property taxes every year it got out of control.
     
  17. The Wyrd of Gawd

    The Wyrd of Gawd Well-Known Member

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    People should always pay attention to their environment. High property taxes are an environental hazard on average typical houses because they eliminate the market for the house. If the tax increases sneak up on you at some point you will be unable to pay them and end up with a tax lien on the property. Potential buyers will be turned off by the high taxes since the taxes will always increase. That's a disaster when people are losing their jobs and incomes are stagnant. Even if a person is willing to spend all of his income on a place to stay other people might be so willing to do that and the property essentially becomes worthless.

    One reason why property taxes are so high in some areas is because the cities have to pay out $millions in claims against their thug cops. That's wasted money.
     
  18. Louisiana75

    Louisiana75 Well-Known Member Past Donor

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    You are a genius! Yes, that's exactly why property taxes are so high in some areas. No other reason could it be.
     
  19. Jack Links

    Jack Links Well-Known Member

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    The problem is they never have any accountability, so they don't care how much they spend. Do students really need Apple computers? No. Androids are much cheaper, but they don't care. It's not their money and they can always steal more from the people any time they wish. That's just one of thousands of examples.
     
  20. Professor Peabody

    Professor Peabody Well-Known Member Past Donor

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    That's why I left in 1985.
     
  21. Darkbane

    Darkbane Banned

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    I can't believe a single person hasn't responded to my posting that the taxes are NOT the problem in this scenario, and that the increase in assessed value is the issue... nobody seems to have challenged the numbers and asked the critical question I did, whats their CURRENT assessed value, and like I pointed out, in order for them to pay $15,000 in annual property taxes, at the current 2% rate in that county, their homes assessed value would have to be roughly $750,000 today, a far cry from the $227,000 the story reports they purchased it for a mere 13 years prior to the latest tax bill they discussed... so the problem is not the tax rate, its the dramatic rise in assessed value...

    but I get it, nobody here wants to talk logic and facts, they want to leave out critically important information all to manipulate the truth and what the REAL issue is...

    I mean does anyone feel sorry for someone who purchased something for $227,000 and 13 years later could likely sell it for $750,000 and reap the rewards of that?

    but I get it, lets (*)(*)(*)(*)(*) and complain about things that we can use to manipulate support to our way of thinking... why hasn't anyone told them to sell it and make a $500,000 profit!
     
  22. Jack Links

    Jack Links Well-Known Member

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    So you like to punish success. Got it. Typical Democrat.
     
  23. Darkbane

    Darkbane Banned

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    wrong, the reason so many were losing their homes is because the assessed value rose dramatically, not because the property tax percentage was being increased that dramatic... adding a tenth of a percent means nothing compared to your home being assessed at tens of thousands more every single year... and thats what happened in california and many places around the country... basically people had properties rise in value 300-400-500% and they didn't want to cash out and move, they wanted to remain in those homes despite the dramatic increase in value, and I think that was a foolish mistake when it was such a short time period that it happened within...

    this is the difference between emotional investors and logical investors... when in the OP example you have a property that in 13 years has TRIPLED in value as I demonstrated in other messages, you don't stay there, you cash out, you sell, you pocket the profit and put it towards other investments... instead these people wanted to stay and live in the homes and they are paying the price for making that foolish economic choice... while I can sympathize people may not want to move, and may have wanted to stay there, but they had an opportunity to realize true wealth and move someplace else, instead they wanted to blame tax rates which remained mostly unchanged... because they don't understand the problem wasn't the tax rates, it was them being lucky enough to have purchased property in THEE hot spot and assessed values skyrocketed as other people bought up all the inventory in that area and people couldn't build fast enough to moderate prices...

    its basically people making HORRENDOUS economic choices because they were making an emotional one to stay in that home once the assessed values went up...

    but under no circumstances was this a case of politicians jacking up property tax rates in an irresponsible way... it was a sheer supply/demand issue...
     
  24. danielpalos

    danielpalos Banned

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    Unemployment compensation for being legal to our own laws regarding employment at will, would help ameliorate this situation to some extent.
     
  25. Darkbane

    Darkbane Banned

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    lol at your stupidity, almost every single message on this website I post supports republicans or attacks democrats, but I get it, you don't like anyone who dares present information that disputes and destroys the logic you're attempting to use... please don't attempt to label me a democrat you moron... why don't you instead attempt to attak my facts and prove me wrong, instead of your bull(*)(*)(*)(*) lame comebacks "must be a democrat" attempts... PROVE ME WRONG, ATTACK MY FACTS AND INFORMATION...

    fact... they purchased the home for $227,000 per the story...

    fact... current cook county illinois property tax rates are 2%...

    fact... to pay $15,000 in property taxes at that rate you need an assessed value of $750,000...

    fact... that means their property TRIPLED in value in a 13 year period...

    fact... that means they are emotional and not logical in capitalizing on those gains by selling and moving...

    fact... you have NOTHING to dispute this logic that its the right thing to sell their home...

    fact... you are another troll who's only defense to facts and logic is "must be a democrat"...

    P.S. advising someone to sell the property isn't punishing success, its telling them to capitalize and actually GAIN the success, rather than wait for inventory to catch to demand and they will have paid all those property taxes for nothing as values drop once inventory now meets demand... YOU are an idiot if you don't understand this simple concept and instead YOU want them to suffer with terrible investment advice like stay there and just complain, they should capitalize on the situation and realize the actual wealth and go find another house with an extra $500,000 in their pockets... THATS GREAT ADVICE! they could already be in a new home that is doing the exact same thing all over again and tripling their money again, instead they are going to sit and be emotional investors and waste a great opportunity to achieve more...
     

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