$20,000 Tax Loss When This CL Family Moves Next Year

Crystal Laker Burce Samuels writes of why his family is planning to move after his teen graduates from high school. He left this comment under the article “More Leaving Chicago Metropolitan Area Than Any Other in Midwest.”

South High School has a new gator.

South High School has a new gator.

* May 2017 – last kid graduates high school in Crystal Lake* May 2017 (day after [South High School] graduation ceremony) – house goes on the market – yes we’ll sell at a loss

Hopefully by Fall of 2017 we’re relocating to an area of the country that doesn’t penalize us quite as much for being a private citizen, and not part of the government or union machine.

Please note, while we do like Crystal Lake Schools, but we’ve stayed in the area to avoid disruption, not because the school(s) itself is worth pay 4X times the property tax we’ll pay as compared to other areas of the country.

This isn’t a statistic massaged to suit a particular position or opinion, it’s just one family planning on moving from McHenry County (and Illinois) because it’s not a financially compelling place to live.

Fuzzy math results in the county and state losing ~20K in revenue (property, state income, sales taxes) from us after we leave.

Some people may say, “don’t let the doorknob hit your butt on the way out.”

I say, “we’ll miss you and God Bless!”


$20,000 Tax Loss When This CL Family Moves Next Year — 17 Comments

  1. Do you realize how lucky you are to be able to leave the most costly and corrupt state in the union.

    I for one wish you the best because wherever you go will be an improvement.


  2. Departures deepen the cycle.

    Property tax rate = total levies/township EAV.

    As people leave, property values usually decline.

    As the township EAV declines, the tax rate increases even if the levies are flat.

    Levies will always drive the math because it’s a zero-sum process.

    All that changes is how the levies are allocated among the remaining property owners.

  3. And as more property is transferred to public entities (Conservation district, group homes, county roads and facilities, municipal roads and facilities, not for profits such as the Fraternites, schools, churches, mosques and synagogues etc. etc. etc.) those assessments disappear and the tax burden is placed on the remaining property owners.

    The best example is the lost assessment from EMPTY manufacturing facilities such as Motorola left to rot after power is cut to the facility.

    Then of course we have a plethora of gravel pits in the county with a crop being produced every day while the only tax collected locally is LOCAL gravel sales and the Farm rate property tax on the hole in the ground.

    The Conservation District alone, has taken almost SEVEN percent of the land mass in the County off the tax rolls.

  4. Add 4 more such comments on other blogs, cannot afford to live in this County and State any longer. As you drive Outside of the collar counties toward the “downstate” area, you see near poverty we don’t read about. Clusters of small rundown homes, no viable employment all made possible by a greedy, overreaching government.

  5. I spent 18 years traveling nine Midwest states for work.

    Trust me, you see “near poverty level” everywhere.

    As to the savings of 4X property taxes, if you compare your house to a very similar house, in a very similar size town in another state, property taxes will be lower, but you won’t see a 4X savings.

    So if you sell at a loss, save a couple thousand in taxes every year, how many years before you break even.

    Also, are you retiring or will you need to find a job in this unknown utopia you are moving to?

    And as to the fuzzy math, if you do sell your house, even at a loss, whoever buys it will be paying property tax, sales tax,and state income tax.

    Don’t let the doorknob hit your butt on the way out.

  6. As property values decline in Woodstock Il, at 4.6% property tax rate last year, the home that is valued at $100,000 today (that was valued at $200,000 yesterday) steadily declines in value to near zero–see Decatur IL, where most property tax revenue goes to pay pensions.

    See Detroit MI.
    (Detroit MI was declared crisis level property tax rate above 3%…Woodstock Il is taxing 4.6% of total home value.)

    Poverty level everywhere didn’t happen by accident.

    All over America, there is prosperity and rising property values.

    The attitude that Illinois should continue to silently suffer status quo: a few insiders garnishing oceans of public money to carve up at their personal whim–TRUST ME, this attitude of diversion from main issues is not to the benefit of those paying the property taxes ever higher while watching property values sink ever lower.

  7. Similar house in similar state:

    $1,000,000 home in California: max property tax $10,000
    $216,000 home in Woodstock IL property tax $10,000

    $1,000,000 home in Indiana: max property tax $10,000
    $216,000 home in Woodstock IL property tax $10,000

    $400,000 home in Massachusetts: max property tax $10,000
    $216,000 home in Woodstock IL property tax $10,000

    $216,000 home in Woodstock IL will be worth less each day as a function of the fact that few borrowers can qualify for conventional mortgage as a function of income-to-debt-payment ratios.

  8. dentbla – you are very correct – whomever buys my house will be paying property tax, income, sales, etc and displace my/our contribution to the state and local coffers.

    My point is/was, we will not be paying it anymore.

    It’s about me and my family’s long term future, cost of living, etc.

    * Property tax savings – this has been answered by others already – and the 4Xs savings is very attainable. We could save ~7K per year in property taxes alone (the tax burden in McHenry County only has signs of increasing so even if we just keep pace (compared to some of our target areas) we’re not even treading water.

    * Net savings on the loss of $s value of the house. It’s a big nut and we’re going to have to eat it regardless. It’s time to cut bait and start rebuilding our financial house – obviously something the state and local government has not been willing to do with it’s financial situation – why should they when they are spending someone else’s money?

    * Regarding retirement – my kid’s graduating high school, not graduate school. I’m a long way from retirement. Maybe 20 years or so – we have to finance our retirement through 401K and IRAs, etc. We’re employed in the private sector and pensions don’t exist. Over these 20 years we’ll save 140K in property taxes alone (7K * 20) – obviously not adjusted for future tax hikes. By investing the 7K every year into our retirement account with a conservative return of 5% it can grow to 231K (not adjusted).

    * Utopia – we’re definitely not living in one here from tax burden perspective. I will say we really like it here. We have many friends and the people here are awesome. We have a lot of friends who disagree with me when it comes to taxes and politics, but we all get along. They’re many places we’ve looked at where we will be in better shape financially. There’s trade-offs anywhere and nowhere is perfect. Luckily my work skills are portable; we’re just looking for a place less painful.

    Our situation is our situation and may not be indicative of anyone else in McHenry County.

    The point of the original comment was to share our specific family situation.

    We have the luxury of “voting with our feet” in a few years.

    It’s not statistically relevant, but it is real.

    The doorknob hitting me/us on the way out is expected – real estate transfer taxes, etc. will be the last bite(s).

  9. As the Exodus continues, businesses and residents alike
    leaving and taking their WEALTH with them at a record pace.

    I and many others will soon be joining them.

    A big thank you to Madigan and his power hungry corrupt
    cohorts in Springfield for destroying the once great Land Of Lincoln.

  10. Bruce Samuels, if by saying you can save 7k per year in taxes…not sure what k is?

    but assuming it is thousands…that means you are paying $35,000 a year in taxes?

  11. Thisis simple math.

    In Woodstock, property tax rates are 4.6% of total home value.

    A $200,000 home here must pay $200,000x .046= $9200.

    At average property tax rate in America (1.5% of total home value), a $200,000 home pays $3000 property taxes.

    Right there is an annual $6200 annual savings.

    And actually the assumption that taxcontributions paid by fleeing Mchenry county residents will be matched by new residents is faulty logic.

    New buyers are statistically investors buyers who rent out property.

    Far less money is cycling into local economy, because less discretionaryincome is available as property tax obligations rise at extraordinary annual rates.

  12. Well taxes are not nearly high enough in Illinois to cover the bond debt and unfunded pension and retiree healthcare liabilities; not to mention the Federal bond debt and unfunded Federal pensions, Federal retiree healthcare, Social Security, and Obamacare.

    Illinois needs to repeal in its entirety via constitutional amendment the pension sentence added to the state constitution in 1970, which will allow the state and local governments to claw back legislative benefit hikes.

    Collective bargaining agreements should be subject to voter approval.

    Administrator contracts should be subject to voter approval.

    Budgets should be subject to voter approval.

    The spending, kicking the can, hide and seek, is out of control.

  13. dentbla – I think Susan answered your question, but here are more specifics…

    The 7K is short-hand for saving $7,000.00 (seven thousand) in property taxes alone vs. a comparable home in several of our target areas.

    We’re paying ~8600 per year in property taxes – comparable tax rates in our target areas range from 1200 to 1800 per year.

    I used simple math to estimate 8600 -1600 = net 7,000.00 savings.

    Now since our real estate taxes have more than doubled in 10 years, it is possible we’d be paying 35K per year in property tax twenty years from now in property taxes (Now $8,600, ten years $17,200, twenty years 34,400) – plus high state income tax, sales tax and any other ways the government will try generate revenue (code for raise taxes).

    Can anyone even imagine paying 35K in property taxes when they retire in 20ish years?

    When you look at that way, it further confirms our decision to leave is the correct one.

  14. Our tax RATES are rising on a parabolic curve, as tifs proliferate and businesses are granted abatements and investors buying foreclosure property aggressively pursue assessment reductions.

    A shrinking number of properties with diminishing property values are forced to absorb a greater burden every year, as taxing bodies fail to lower borrowing and spending.

    Following the curve of the rate our tax rate has risen, Woodstock will be above 10% property tax rate ($10,000 on $100,000 of home value) in less than a decade.

  15. So right you are “Joe The Plumber.

    The people should be out in force at the next election, with a plan to oust the likes of Madigan.

    He has been in office far too long.

    The power of the vote can change the dynamics of politics in Illinois, but only if the people are engaged and aware of what needs to be done to make that happen.


    “A bill has to pass both Houses before it can go to the governor for his signature.

    As Speaker of the House, Madigan decides what bills can be called for a vote in that chamber.

    If a Democrat (Democrats hold supermajorities in the Illinois legislature and can pass any bill, any time they want, without one Republican vote) does vote the way Madigan wants, he will not give them money for their reelection since he controls the purse strings as chairman of their party.

    The president of the Senate, Cullerton, was Madigan’s floor leader in the House and now president of the Senate due to Madigan’s support.

    Madigan controls both chambers.

    The way to stop this mess, is to vote more Republicans into office in 2016 and take away Madigan’s power as Speaker.

    West Virginia recently did something very similar and in a state controlled by Democrats, last November they voted in enough Republicans to bring balance to their state government”


    Like his page and join the conversations.

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