Tax Districts Can Grab 2.1% in 2018 — 38 Comments

  1. Where is the Jack Franks Property Tax Cut 10 Bully Pulpit?

    The Jack Franks plan to cut property taxes 10% in each property taxing district in the county is now 47 days overdue.

    His Cut 10 campaign website, which redirected to Cut McHenry Taxes, said he would deliver the plan on his first day in office, which was December 5, 2016.

    Instead of delivering a Cut 10 plan Jack Franks hired two Democrat patronage workers (Geenen, Serafini) to work for the County and put a resolution on the County Board Agenda as County Board Chair to hike property taxes $80,000.

    The Northwest Herald mentioned the plan in its endorsement of Jack Franks.

    Every single mayor in McHenry County endorsed Jack Franks for County Board Chair (did they endorse him only to not follow his signature campaign pledge)?

    If only you believe in miracles.

  2. Mark, NOT EVERY Mayor in the County Endorsed Franks.

    BUT the Fourteen local mayors and village presidents who did, have continually increased government spending .

    Birds of a Feather!

    Cal, can we get a list of the 14 (I only saw 10 when I did a search on this site)

  3. These Mayors / Village Presidents endorsed Jack Franks for County Board Chair for the November 8, 2016 election:

    Algonquin – John Schmitt

    Crystal Lake – Aaron Shepley

    Fox River Grove – Robert Nunamker

    Greenwood – John Ferris

    Harvard – Jay Nolan

    Huntley – Charles Saas

    Lake in the Hills – Paul Mculcahy

    Lakewood – Erin Smith

    Marengo – Don Lockhart

    McCullom Lake – Terry Counley

    McHenry – Susan Low

    Oakwood Hills – Paul Smith

    Richmond – Peter Koenig

    Spring Grove – Mark Eisenberg

    Union – Robert Wagner

    Wonder Lake – Tony Topf

    Woodstock – Brian Sager


    Unknown if the following endorsed Jack Franks for County Board Chair in 2016:

    Unincorporated areas are not listed as they don’t have an elected Mayor / Village President.

    Bull Valley – Emily Berendt

    Cary – Mark Kownick

    Hebron – John Jacobson

    Holiday Hills – Dan Drury

    Johnsburg – Edwin Hettermann

    Lakemoor – Ryan Weihofen

    Port Barrington (formerly Fox River Gardens) – Shannon Yeaton

    Prairie Grove – Stan Duda

    Ringwood – Rick Mack

    Trout Valley – Bob Baker

  4. Only pension funds, firemen and police would be permitted property tax increases if Springfield passes their current budget legislation PACKAGE which consists of Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13.

    If you want to read why businesses leave this state, read all of SB0009.

    If I were in the non-alcohol beverage industry and I added natural sweeteners to my product, I would be making plans now to leave.

    The convoluted tax collection process / licensing of beverage companies would be enough for me to leave.

  5. Just received the Real estate market analysis for 60014 (Crystal Lake) from Zillow.

    Their crystal ball tells them that homeowners can expect a 3.6% increase in their home value in 2017.

    At least taxpayers can look forward to a slight tailwind to improving the percentage of property taxes to home value.

    Of course, that doesn’t mean that we don’t need to fight to cut duplication, waste, fraud and abuse in slashing government spending to lighten the local property tax burden.

    It’s just nice to find the tiniest of silver linings.

  6. McHenry Count mean and median P-tax rate is above 3.66%
    America is 1.4%

    If general inflation drives home values here up slightly, and levies increase slightly, and p-tax rates here drop to, say, 3.5% (vs. 1.4% in America),
    you call that a silver lining? Brother you are not thinking logically.

    Every year our homes lose value relative to homes everywhere else in America.

    That is the store of negative value that these homes represent.

    Smart players will get a huge mortgage they can walkaway from,, and a government job with defined bennies and a big COLA, then it wont matter to them what happens here.

    I resent the implication that things are looking up here.

    That is an inaccurate assessment.

  7. A oversight group of concerned unpaid volunteers willing to take a look at how the government does business is needed.

    They will be shocked at the waste in govermment.

  8. An increase of 3.6% in the value of my home increases my net worth and I am happy about that.

    As I said, it’s nowhere near the whole answer, but growth is certainly part of the solution.

  9. No you are horribly wrong and so you are serving as a useful tool.

    Everything is relative.

    As long as you are content to show “growth” without quantifying the relative value or deficit of the “growth,” you are helping condemn your neighbors to an inescapable negative feedback loop of falling home value and rising nominal taxes.

  10. Not only that, Susan, but he actually believes the falderal that they are feeding him.

    Put your house on the market and see what really goes on!

    Housing is dropping like a rock.

    No one but the government dole people can afford to buy AND pay taxes!!

    (They don’t. The government picks up their tab.)

  11. Warning! Financial math ahead!

    Assuming that Zillow’s numbers are true and that the assertion that home values are “dropping like a rock” is fake news:

    Assume that my 1/1/2017 home value in Crystal Lake is, for simplicity, $100,000.

    Assume that I have an $80,000 mortgage balance making my net equity $20,000.

    Now, assume that Zillow is right and that my home value increases by that 3.6% to $103,600.

    Even if I didn’t pay down any of my loan balance, my net equity has increased from $20,000 to $23,600. ($103,600-$80,000).

    $23,600-$20,000 divided by the $20,000 original equity equals an 18% increase in the home equity portion of my net worth!

    Steve and/or Mark, I would especially value your comments on the above.

  12. All is irrelevant as the Great Exodus from the tax and spend Democrat utopia of Illinois
    will continue unabated as property and business owners flee the state in record numbers
    year over year.

    Why stay or move to Illinois only to be preyed upon by that evil leprechaun Mike Madigan ?

  13. Whackamole: Pay attention to Susan.

    Just because the value of your real estate increases has absolutely no positive impact on the taxes you pay!

    The government levies affect your taxes.

    If your assessment based on the market value of your home goes up, it may lower the tax RATE but it does absolutely nothing to lower your taxes.

    There is only one solution to lower your taxes: GOVERNMENT UNITS MUST LEVY FOR LESS!!

    AND if and when they lower the property tax levy keep a close on what else they tax!!!!

  14. … and grab they assuredly will! ….

    actually snatch, steal or seize might be more apt than ‘grab’

  15. What whack fails to consider is his relative
    (loss of )value.

    It is like being happy about getting a 3.6% raise while cost of living rises 6.6%.

    Year after year, that has been put plight.

  16. Bless you, Susan but you’re making my point.

    You just have one number wrong.

    Cal’s article states that the cost of living as measured by the Consumer Price Index rose by 2.1%, not 6.6% as you assert.

    Admittedly, a 1 1/2% gain ain’t much, but it’s a baby step in the right direction.

  17. If Zillow is right, doesn’t that mean when I sell my house to get out of this state, I will indeed get more $$$

  18. Nob: HB6630 died when the new Session started.

    It was nothing but a publicity stunt!

  19. No, I said it is the same as being happy about a 3.6% raise during 6.6% inflation.

    You are failing to take relativity into account.

    Because our property tax rate is 2%-3% higher than everywhere else in America, our homes lose 2%-3% relative to everywhere else.

    So if your home here goes up 3% at the same time homes everywhere have risen 5-6%, you have fallen behind.

    In this county that has happened year after year.

    A home investment 10 years ago cannot be traded for anywhere near the price of homes elsewhere today.

  20. Whackjob?

    Calling me fake news is typical of a libtard.

    You have no undestanding of a comments section.

    You are a moron!

    Sorry, Susan.

    You are wrong – I don’t think he is even useful as an idiot.

  21. When facts and logic fail, there’s always the tried and true ad hominem.


  22. Liars figure and figures lie.

    Most of the people can’t see the nose on their face; so instead what you get are more politicians promising tax cuts.

    Enter ‘Lying Jack Franks’ and a ‘really’ great deal on a used truck!

    And two unfunded and unnecessary stooge employees.

    Don’t say you weren’t warned.

  23. Thanks for the chuckle, Whacka doodle.


    Knee slapper for that faux pas.

    I totally agree with Wizard.

    There are lies, damned lies, and statistics.

    The modern school system for generations now has taught children to NOT THINK for THEMSELVES.

    We see this being exemplified quite often in comments here by the youngsters that have gone through that dumbing down education system.

    Spouting something you heard somewhere is not knowledge or discernment.

  24. The CPI history above averages to less than than 3%.

    If one goes further back it might average 3% or more at some point.

    3% being the annual COLA hike that all Tier I (earned creditable salary prior to January 1, 2011) government pensioners receive.


    The property value appreciation is one of many factors to consider.

    The property tax comparison among cities or states is one of many factors to consider.

    Some of the highest property taxes are found in areas that have a special service area (SSA) tax.

    Per a 2015 Chicago Tribune article looking at 2015 Chicago area property taxes, of the ten highest residential effective property tax rates in Illinois, ranging from 6.15% to 10.48% (SSA’s were not included in the study and those 10 communities may not have any SSA’s), one was in Lake County and the remainder were in southwest suburbs of Chicago.

    The overall tax / fee burden plus bond debt plus unfunded liabilities (pensions and retiree healthcare) is most useful for comparing governments within a state.

    The Institute for Truth in Accounting has done some work in the debt and unfunded liabilities of municipalities with the exception of the fees.

    Layering the state on top of the municipality is more useful, and again Truth in Accounting (TIA) has done work on state debt too.

    Layering the taxes on top of the state and local debt and unfunded liabilities is even more useful, haven’t seen such a study, although one might exist, and TIA might have taken a look at that.

    It’s most useful to look at taxes and fees from all sources such as state income tax, property taxes, sales taxes, fees, etc.

    The Tax Foundation and Illinois Policy Institute have done some studies on that, although once again, have not seen much analysis of the fees, although once again, some study may exist somewhere.


    We have structural imbalances for pensions in many Illinois local governments, the state government, and the Federal government.

    That means the current tax / fee revenue projected forward does not sustain future obligations for pensions, bonds, retiree healthcare at present service levels.

    It is a big mess.

  25. By the way the 3% compounded COLA for pensions was added to state law after 1992.

    The laws vary for each pension plan.

    For TRS, the biggest pension plan, there were multiple COLA hikes over time, eventually moving from 1.5% not compounded to 3% compounded.

    The legislative pension benefit hikes to pension systems which were already underfunded, and then those hikes are guaranteed in the state constitution to not be diminished or impaired for both any employee working while a hike was added, and for any employee who began employment after the hike was added but before it was rescinded, is one of the biggest taxpayer scams of all time.

    To make matters worse collective bargaining negotiations, mediation, and arbitration does not take into consider pension and retiree healthcare funding status.

    These are very serious problems for taxpayers.

  26. Also, the Chicago Tribune study on 2015 effective property tax rates was only for the Chicago land area, not all of Illinois.

  27. Rather than allowing the property tax crisis to be brushed aside by general political misdirection (not you Mark, but most other people do not want to know the reality we face):

    Thread by thread, the property tax rate in Woodstock is 4.6%
    National average is 1.4%

    With property taxes fully capitalized into home values, homes in Woodstock LOSE 3% of value every year relative to homes in America Every Year.

    So, whatever extra we are forced to pay here, DOUBLE IT.

    Because we are losing the store of (compounding) value in home equity in equal amounts. Every Year.

    Of course sales taxes and income taxes make up a significant portion of Household Spending as well.

    Each State must be calculated independently.

    But here is one quick check:

    how many households spend amounts equal to the prices of their homes annually?

    How many households earn the prices of their homes annually?

    When comparing these other taxes to property taxes for purposes of discovering offsets, notice that the tax rate differentials are applied, typically, to lower amounts than the amount to which property tax rate is applied.

    (When people say ‘oh but it costs more to buy a license plate here’, as how MUCH more, and how often that occurs, as opposed to Property tax –which occurs every year and is charged on the price of your home.

    but here are some examples:

    local combined sales tax rates: IL 8.6%, IN 7%, WI 5.4%, IA 6.8%, MI 6%, MA 6.3%

    state income tax rates: IL 3.75%, IN 3.3%, WI~5.3% up to $69,000. 6.27% to $244750 7.65% above
    IA ~6.32% up to $69255 8.98% above
    MI 6%, MA 6.25%

    Illinois (2012) ranks 4th to NY, CT, and NJ in State& local tax burden per capita and as a percentage of income.

    11% of income goes to local/State taxes, they say.

    I daresay Woodstock is far higher than that figure, with median income households in median income homes paying 12% of hh income just in property taxes.

  28. With property taxes fully capitalized into home values means the following?


    The combined mortgage principal, mortgage interest, property taxes, and homeowners insurance maximum (not recommended) of gross income is 33%.

    So if property taxes are higher, that leaves less for mortgage, which means one can afford a lower priced home.

    That is part of why homes in many areas of Illinois are appreciating at a slower rate compared to the rest of the country.

  29. No.
    Capitalization of property tax rates means, all things being equal, the property tax rate can be applied as a negative or positive factor annually to full home value.

    For example, if every single property tax rate in America was 1.4%, there would be capitalization of negative (-) 1.4% to ALL homes, therefore each would depreciate equally relative to one another due to property tax rate.

    ( General price inflation tends to raise prices of homes, as materials and labor place some base on the value of homes in habitable areas).

    However, if homes in Indiana are taxed at 1% and homes in Woodstock are taxed at 4.6% and homes in Chicago are taxed at 2.3%, then

    Homes in Woodstock will be worth 3.6% less than Indiana, and that depreciation will occur each and every year so it is cumulative.

    Woodstock homes will be worth 2.3% less against Chicago homes each year.

    Homes in Chicago will be worth 1.3% less than Indiana each year.

  30. Since property tax rate is only one factor, the other factors should also be considered, when forecasting property values.

    Historically we could compare property values over say a 10 year period in Woodstock, Chicago, & Indiana.

    There are so many factors.

    Compare property taxes for an equivalent house in Woodstock, Chicago, and Indiana.

    An equivalent house is likely not the same price.

    And then we would have to define equivalent home, and buyers rank factors differently, for instance, is equivalent home based on equivalent ACT scores for kids, crime, square footage, lot size, etc.

    No clue what the prices would be, but let’s make up some figures to get the idea.

    Location, Property Value x Tax Rate = Property Taxes

    Woodstock, $300,000 property value x 4.6% tax rate = $13,800 property taxes.

    Chicago, $350,000 property value x 2.3% tax rate = $8,050 property taxes.

    Indiana, $250,000 property value x 1% tax rate = $2,500 property taxes.


    Over 10 years:

    Woodstock $130,800 property taxes.

    Chicago, $80,500 property taxes.

    Indiana, $20,500 property taxes.

    So if education is the #1 criteria for a buyer,


    Over 20 years:

    Woodstock – $261,600 property taxes.

    Chicago – $161,000 property taxes.

    Indiana – $41,000 property taxes.


    Some Illinois families have moved to Texas.

    Texas property taxes, depending on the area, can be comparable to Illinois.

    But Texas has no state income tax.


    As high as property taxes are in Woodstock, there is also the problem of underfunded Police Pension Fund, IMRF Pension Fund, and Woodstock Fire / Rescue District pension fund.

    And bond debt in the school district.

    And TRS unfunded liability (taxpayer iou to the pension fund) which is currently a state obligation on behalf of the school district.

    There are no serious discussions about fixing these problems or how to fund the obligations given taxes are already high.

    Jack Franks is nothing but hot air, no concrete plans.


    There is currently negotiations in the Illinois General Assembly, at this point the Senate, to hike the state income tax.

  31. But look what you are doing by comparing disparate issues!

    You are devaluing the importance of a well defined, objective measuring reference!

    Where on earth do you get the idea that Woodstock education is better than Chicago or Indiana, simply because it costs so much more??

    Have you looked to at the disgraceful Illinos School Report Card standardized test result comparisons?

    The College Readiness or ReadinEss for next Grade level?

  32. You have missed a crucial point:

    Because Woodstock property tax rates are 3% more than national average property tax rates, ALL OTHER FACToRS must outperform by AT LEAST aggregate 3% JUST To BREAK EVEN.

  33. In any case, academic studies I have seen assert that property tax rate is fully capitalized into home values without regard for quality of social service provision.

    That is, all American taxing districts are required by law to provide social services like schools, police, roads, fire& rescue, and government, and whether the quality is good or poor, tax RATE ( which is literally “public spending relative to the means of the community “) is fully capitalized.

  34. Property taxes are part of the equation.

    It’s fine to compare them in a vacuum, but at some point other factors need to be considered too.

    There is no devaluing of one factor by also considering other factors.

    There was no claim Woodstock education is better than Chicago or Indiana.

    Woodstock is in a tough situation as are a lot of communities in Illinois.

    The point is, present all the factors using dollar figures, not just property tax percentages, so people can better understand the issue.

    Property tax capitalization means nothing to the average person, they think in terms of dollars.

    So property tax capitalization should be explained in dollars in a way the average person can understand the issue.

    In the example above, which no doubt has some flaws and is not intended to be the final picture just a starter so people can grasp the basic issue, $220,000 more in property taxes were paid over 20 years for the Woodstock property compared to the Indiana property.

    Woodstock property taxes being $220,00 more over 20 years on an equivalent house in Indiana means more to Joe the Truck Driver and Jackie the Nurse than Woodstock property taxes being 3% more than the national average.

    $220,000 is more tangible than, with property taxes fully capitalized into home values, homes in Woodstock lose 3% of value every year relative to homes in America.

    When fully capitalized is not explained in dollars a lot of people don’t grasp the meaning.

    People know they pay a variety of taxes, not just property taxes, and they receive services for property taxes, so those should be presented to create a complete, not to minimize property taxes.

    A comparison of McHenry County to Walworth County Wisconsin might help people understand.

    In a recent article Illinois Policy Institute mentioned a primary destination for migrating McHenry County residents is Walworth County.

    The source of information for the IPI article was How Money Walks, which in turn obtained the information from IRS Tax Migration data.


    Illinois Policy Institute

    Shrinking McHenry County Needs to Cap and Cut Property Taxes

    January 20, 2017

    by Michael Lucci


    So if property taxes are capped and cut, then what.

    Someone will feel the pain.

    Municipal bankruptcy?

    Bond defaults?

    Collective bargaining pay freezes?

    Administrator contract pay freezes?

    The public sector unions have made it clear they do not want to negotiate the pension and retiree healthcare benefit hikes they have received.

    The Illinois Senate President John Cullerton consideration model (hike something in return for a cut) does not seem to produce enough savings.

    The Tier II pensions have been in effect for those beginning employment on January 1, 2011 or after, and most pension unfunded liabilities (taxpayer IOU’s to the pension fund) have continued to increase.

  35. The other aspect is pay.

    Is average pay higher in Woodstock or Chicago or Indiana for a particular job.

    So if the truck driver or nurse or earns more in Woodstock than Indiana, that’s an offset to higher property taxes.

    That is not an argument to justify high Woodstock property taxes, it’s just another factor.

    Obviously if a working person moves and wants to continue to work, they consider the overall compensation of their new job.

  36. Mark I expect better out of you than the ” equivalent house” argument.

    How did you base your equivalency?

    More square feet made with shoddier material than in Manhattan?

    Did you factor in costs of repairs and upkeep because property tax rates make normal maintenance by landlord owners contraindicated economically and the whole neighborhood ?

    And that is just one example of a factor to take into account when framing your argument.

    Property tax rate capitalization is a single factor that is neatly explained, and you are needlessly complicating it.

    People are buying an asset.

    That asset either appreciates, depreciates, or stays the same.

    That is the sole factor being addressed by property tax rate capitalization.

    When people purchase the asset of their home in Woodstock , there is one handicap they can quantify rather precisely, and that is that their asset value will depreciate relative to most everywhere else at a rate of 3.2% annually.

    NOW they are in a position to quantify and analyze OTHER factors such as those you mentioned.

Leave a Reply

Your email address will not be published. Required fields are marked *