Reader Susan provided two commentaries on property taxes this weekend.
The first tells how to compare real estate taxes from jurisdiction to jurisdiction, state to state. It’s called the effective tax rate.
Divide one’s tax bill by what one’s property is worth (see Zillow, for estimate). The percentage obtained is the effective tax rate.
Here are her comments on that:
Present value of 55 year old $240,000 defined benefit pension is above $6 million, without factoring in COLA or health insurance benefits, which make it higher.
Illinois law puts no cap on property tax as percentage of home value.
Illinois law guarantees this $240,000 and other public employee defined benefit pension payouts for life, with survivorship rights, health insurance benefits, and with COLA.
Illinois law, on that basis, effectively enforces property tax rates on homes that can rise to higher than 100% of home values.
If you think that is absurd premise look at Detroit: as property values approached zero, the lower denominator created higher tax percentage rate. Tax divided by property value equals tax percentage rate.
My 2014 property tax as a percentage of home value is 3.67%, up from 3.285% in 2013.
As a comparison, 15 year mortgage interest rates are below 3.3%.
U.S. average property taxes as a percentage of home value are below 1.2%.
Ask yourself, to what percentage of your home value must your property tax rise before you are forced to abandon your property?
Ask yourself, if you abandon your property, who will buy it at pennies on the dollar? Whose federal tax dollars will bail out mortgage guarantors?
Will property tax laws change when the smart money owns all Illinois residential real estate?
Coincidentally, Reboot Illinois had an article that featured effective tax rates this past week. Below is the top part of its chart. (Only the top part is needed because McHenry County is so high on the chart.)
Susan also reports on what happened in her Seneca Township part of McHenry County. Seneca Township is west of Woodstock.
Insatiable appetite for more money is UNSTOPPABLE FORCE.
Only self defense against unstoppable force is IMMOVABLE OBJECT.
IMMOVABLE OBJECT= Law Capping Property Tax at some Percentage of Home Value (1.75% ?).
It is only complicated when it benefits those who make it complicated.
Take your tax bill, divide it by your property value, and you have the percentage of your home value taken as tax. [The effective tax rate.}
In California, they have long had a Property Tax Cap (Prop 13) at 1% of property value.
They seem to provide more than adequate education and governance in California with this 1% Tax Cap.
*(PLEASE NOTE: The percentage increase of stated “percentage taken for McHenry County Pension” rose 31.2%. This should alarm all homeowners in the county as we are all legally obliged to provide these funds for life of recipient and survivors, and they must rise with COLA. School District 200 Pension percentage rose 22.35% year over year.)
Percentage increases of my property tax percentage by taxing body as stated on property tax bill of 2014 (compared to 2013):
McHenry County: up 7.31%
*McHenry County Pension: up 31.20%
McHenry County Conservation District: up 10.76%
MCC: up 9.84%
School District 200: up 11.83%
School District 200 Pension: up 22.35%
Seneca Township: up 6.7%
My Property Tax data:
Taxing Body Rate Percent [of Total Tax Bill]
MCHENRY COUNTY 0.945481 8.57%
MCHENRY COUNTY PENSION 0.150564 1.37%
MCHENRY CO CONSV 0.274794 2.49%
COLLEGE DISTRICT 528 MCC 0.429772 3.90%
COLLEGE DISTRICT 528 MCC PENSION 0.000872 0.01%
SCHOOL DIST 200 7.439407 67.46%
SCHOOL DIST 200 PENSION 0.302812 2.75%
WOODSTOCK FIRE RESCUE 0.757490 6.87%
WOODSTOCK FIRE RESCUE PENSION 0.107959 0.98%
RURAL WOODSTOCK LIBRARY 0.119080 1.08%
SENECA TOWNSHIP 0.187291 1.70&
SENECA TWP RD & BR 0.312990 2.84%
Totals 11.028512 *(% of 1/3 of home value)
Taxing Body Rate Percent [of Total Tax Bill]
MCHENRY COUNTY 0.881056 8.94%
MCHENRY COUNTY PENSION 0.114753 1.16%
MCHENRY CO CONSV 0.248082 2.52%
COLLEGE DISTRICT 528 MCC 0.391268 3.97%
COLLEGE DISTRICT 528 MCC PENSION 0.000792 0.01%
SCHOOL DIST 200 6.652401 67.49%
SCHOOL DIST 200 PENSION 0.247494 2.51%
WOODSTOCK FIRE RESCUE 0.681136 6.91%
WOODSTOCK FIRE RESCUE PENSION 0.082114 0.83%
RURAL WOODSTOCK LIBRARY 0.104300 1.06%
SENECA TOWNSHIP 0.175517 1.78%
SENECA TWP RD & BR 0.277957 2.82%
Totals 9.856870 *(% of 1/3 of home value)
If you would like to see how much more or less local tax districts will get from the property tax, most district comparisons are found below:
- Find a comparison of this year’s and last year’s municipal tax takes (Crystal Lake has the highest increase) here.
- A township government tax comparison is here.
- Schools, junior colleges, McHenry County and the Conservation District are here.
- Fire Protection Districts are here.
There is a link to the County Treasurer’s web site where you can find the tax bill you will have to pay this year here.