Property Tax Increases

[HCBailly]

Question: Is a 50% increase in property taxes every three years normal?

I’m just wondering if this is normal, or if there are municipalities out there that are actually able to stabilize their budgets a whole lot better. Granted, I live in Cook County (suburbs of Chicago, IL), which I know has a budget crisis, so maybe I’m just in a bad area. Then again, for all I know, this is just part of real life, and I just have to find ways of making more money, which I have so far.

Just so everyone knows, I’ve had my property taxes challenged each time they’ve been increased, and gotten a reduction every time. However, it’s still close to 50% more every three years. At this rate, my property taxes will exceed my mortgage in the next 6 years.

This is unsustainable and intolerable for me long-term. Are there any other alternatives? I’ve heard of unincorporated areas, but I would think that they’re still subject to county taxes. Of course, there’s retirement communities, but I’m nowhere near old enough to live there anyway.

In any case, I’ve reached an agreement with one person to rent out a room in my home. Plus, I have another who is also strongly interested. At least this will help to offset the increase in costs until I am able to otherwise increase my income or sell the home.

Thanks for the info.

 

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[EastWind]

That's not normal. Quite excessive, if you don't mind me asking, where about do you live in IL? I ask because I'm thinking of moving there, and have been thinking about the North shores and North west burbs.

 

[Runum]

Wow HC. 50% a year increase is a lot. This is coming from someone in a state where property taxes are real high. Maybe Mich. is trying to catch us.

 

[randallg99]

absolutely out of line.

have you spoken first hand with your tax assessor to find out the reasons? there is usually a reason for real estate taxes to ramp up in a short time as yours did... most of the time it's a school or some other large township project (think sewer plant, senior center, etc). and this typically leads to temporary increases but almost never goes down from these levels.

That said, I am seeing across the country many townships are not able to sell all of their tax liens at their auctions thus creating shortfalls in budgets. (read Moody's municipality bond reports) If that's the case with your situation, then your town/city and the tax paying residents are pretty much screwed for the short term because housing prices will decine due to higher taxes and those who can pay taxes are subsidizing those who cannot pay....

a viable option is to participate in local politics and demand lower taxes via balancing budgets and eliminating wasteful spending....

 

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[TaxGuy]

Wow didn't know that you live in "Crook" County too?

Anyways ours went up about $100 this yr, however, we didn't get the form for the homeowners exception and I have to go to Skokie tomorow to turn in the form and get my $2300 back

And speaking of roommates we just had our first "bad" one in the 2yrs we've been doing this and he'll be moving out mid next month

 

[HCBailly]

EastWind, I live in Wheeling, about 30 miles NW of Chicago. I used to have a 1-bedroom condo, and now a 3-bedroom townhome, both of which have suffered the same effects over the past 7 years. I’ve heard Lake County (my only other viable alternative) is even worse, because at least Cook County has more people to dilute the burden among.

Runum, that’s 50% every THREE years, not every year. I think Cook County re-assesses their taxes in three regions, of which only one gets hit per year.

Randalg99, according to my tax bill, the largest increase in my property taxes was for school taxes, which accounts for 75% of the increase. This has always been the case and accounts for 2/3 of my total property taxes.

This may be too political, but you asked for it.

I don’t believe in political participation, because neither side will actually change anything. Both sides SAY they want to lower taxes and end wasteful spending, but in the end we get more of the same regardless of which side is in power. The only difference is who gets the tax breaks and where the wasteful spending goes. At best, even if successful, I might get lower taxes, but they won’t be willing to offend the opposition by cutting back on entitlements and other wasteful spending, so we end up in the same boat anyway. Besides, who’s going to campaign on a tax policy of cutting school taxes?

In any case, I believe as RK does, “It’s far easier to find a way to make more money or otherwise compensate for problems with the system than it is to try to change it.â€

 

[hakrjak]

My property taxes here in Colorado Springs have stayed the same, or gone down in some cases over the past 10 years. El Paso County has a reputation for being a very frugal part of Colorado.

- Hakrjak

 

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[hatterasguy]

Property taxes in my city actualy went down after a big hike a few years ago. They dropped the mill from 32 to 27, and their was talk of dropping it further to 24.

Sounds like your city is pretty screwed up. They better be careful, if they keep jacking taxes property values are going to tank.

 

[HCBailly]

Property values ARE tanking. I put 20% down on a $212K home. A year later, I asked a few realtors about possibly selling it, because I saw the writing on the wall, but it was too late. They said that after closing costs and everything, I would be $20-25K in the hole, due to all the foreclosures in the area.

It's a good thing I've got a handle on my cashflow or I'd be screwed right now.

 

[NoMoneyDown]

Mine went down this year after very small increases the past several years. We bought a new personal residence in Dec of last year and were able to challenge our property tax value (a $325k home, bought for $250k, and taxed at $240k). All of our rental properties also had a decrease in taxes (no challenges there, tho).

 

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