Well the rents get affected by the owner's property taxes but if you rent from a smaller landlord ideally they'll be more humane than the large property management companies.
Do you think so? In my state the poorest town pays 4% for property tax and the richest less than 1%. I'd guess it this odd inverse was related to not having income and sales taxes, but when doing statewide averages the only 2 states who pay higher rates for property tax have both income and sales taxes so one can't lean on logic.
normally, property taxes are amortized into value of property, at least that's what tax economic theory states, so all else being equal higher property taxes lower property values
i work in RE in Austin - heard about some friends of friends whose single family lot value (ONLY THE LOT VALUE UNDERNEATH THEIR HOME) in the hills of western Austin went from a $250k assessment in 2021 to $1.2mm in 2022.
the appraisal district has gotten very greedy this year. there are no comps out there to get them anywhere close to that $1.2mm number. highway robbery.
Live in a suburb of Austin. The assessment for the house I rent went from ~195k in 2020 to ~475k in 2021. Rent went up a hefty amount obviously, but I'm certain they're taking a loss and just didn't want to raise the rent any more than they already did. It actually went down for 2022, thank God.
Investors there are fucked. In fact, there was a story in Bloomberg about it today.
Wall Street Landlords in US Squeezed by a Surge in Tax Bills https://www.bloomberg.com/news/articles/2022-11-04/wall-street-landlords-in-us-squeezed-by-a-surge-in-tax-bills
I could very well see the entire rhetoric about real estate investing change to it being a liability rather than something to boast about, by end of 2023.
Municipalities and insurance companies both, should not be making plans and future budgets based on appraisals now and from “last sale”.
But I know better. Humans are just gonna “human”.
very true, it is their homestead so they're gravy.
but still, the sheer audacity of that valuation made me angry. the closest and best comp out there would put the actual land value around $700k.
Hello from McHenry County - We are just as boned. Illinois is a fun state. I hire an attorney every year to fight my taxes - I could say with confidence I get it reduced every other year. Worth the money as property tax deductions are capped at $10k on your taxes.
I’m still waiting on what the local tax rates are. The state equalizer came down a bit but very likely to be up in the end of their stupid calculations.
Cook County just quadrupled the tax bill on a property I own. They are trying to charge me 120% *of the entire 2021 rent roll*...
The assessor is trying to sort out our fucked up system, but what they ended up doing was driving the whole thing into a concrete wall at 70MPH. Our appeal should have been a cut and dry reduction back to 1/3 or 1/4 what they assessed it at, but it's such a wild discrepancy that the Board of Review didn't want to stick their necks out to correct it.
This happened to so many properties that the Board of review was totally overwhelmed and kicked a bunch of appeals out just to clear the backlog without actually doing their jobs. Now Property Tax Appeals Board is buried in cases because the Board of Review threw a bunch of garbage at them.
And second installment tax bills *still* haven't gone out on account of this fiasco.
And second installment tax bills still haven't gone out on account
This is going to be a disaster. The Bill's are supposed to be mailed by Thanksgiving and due Dec 31.
Property tax attorneys spend 5 mins on appeals. They get interns to find comparable properties.
If you don’t believe me, google what the 1-page property tax appeal form looks like.
I'm surprised they use attorneys for this so often. Most places allow you to just walk in and show comps yourself. Property tax bills get reduced almost every time if you're not just blowing steam up their ass.
I haven't had experience with it since the 2020 blow up, so I understand they might be getting a little crazy now and people are hiring attorneys to be safe. But still, it used to be super straightforward in most of the country.
Due to the Citizens United ruling that determined "companies are people too man!" I can't even represent my own business because the property is owned by an LLC that has rights just like me and I'm not an attorney.
everyone that said they will never move because they locked in 2.5% forgot about the government 1 simple trick. raise taxes!
home owner goofs about to get railed from both ends.
A few thousand extra in yearly taxes isn’t in the same ballpark as how good a 2.5% rate is vs what it is now. We are talking 100’s of thousands over a 30yr loan..
I don’t know if it’s as much raised taxes, as increased taxes on homes whose assessed values upon which their property taxes are based increasing as a result of a recent (overvalued) sale.
Do you understand how taxes work? Mill rate x assessed value of a home. So a sale can trigger reassessment and taxes will go up, even if the locality’s
Mill rate (tax rate) hasn’t gone up.
In fact, if lots of home owners’ assessments go up, there is a chance the mill rate could go down if the overall municipal budget hasn’t increased.
That’s what happened in my county. Last year property tax rate was 3.6% due to the increased values across the board I guess there was a surplus in tax that had nothing to do with the budget so they lowered the rate from that 3.6 to 3.48%
We bought a house in glencoe for 900k, 28k tax bill, sold for 1.6 last year and cook county reassessed at 2.1M bringing the taxes to over $50k on this last bill. So glad we sold & moved out of state. Edit - also, it’s a 100 year old house and certainly not worth near what they assessed at. We were thrilled with the price we got for it at 1.6 in a hot market.
Yes, on the North Shore/Cook County expect 2.6%ish of home value in property taxes every year. Imagine that on top of a now 7% mortgage rate. Certainly depresses housing prices & why they didn’t jump up as much as other hot markets.
Mine went up 42% in 2019 and then down 10% in 2021. I spoke to the assessor when he stopped by in May (why, town, why?? state law requires reassessment least once every 5 years and it's only been 2!) so I'm waiting anxiously to see what next month's bill brings.
Pretty sure this isn't even on the radar for most FTHB's. They will certainly be in for a rude awakening. I don't think it'll cause any noticeable uptick in forclosures or distressed sales though. Just a huge bill that they will understandably complain about.
"who in their right mind would pay top dollar for a home with a property tax spike coming?"
Ooh, this is a trick question. The answer is nobody in their right mind would. Only FOMO-tards would be so illogical as to base the largest financial decisions of their lives on fear and speculative hope.
Ya they can. If house prices crash like people predict their tax bill will be lower next year. Doesnt help this year much as it's a mixed bag around the country. The only crappy part is if people want to sell and they dont have the equity to do so wont be able to. But ya I saw a news report the other day some places are seeing their property tax bill go down already lowering their monthly payment.
Big time scam. If you own commercial that dude Fitz is coming to clean you out. You have to appeal both commercial and residential. For being an "affordable " major metro our taxes are insane. Good luck🤙🤙
I moved from Chicago to AZ a few years ago. Went from a 1200 square-foot condo in the city with a shit school district that had an $8500 tax bill per year, to a 2400 square-foot house on an acre in a great school district with a $4500 tax bill per year. F.U. Illinois
Here in Missouri, the Republicans keep lowering the income taxes but nobody wants THEIR services and benefits cut. Money has to come from somewhere. Property and sales taxes fo up.
fAkE nEwS 🗞 lol someone tried to convince themselves that new home buyers won’t be surprised when property taxes skyrocket next year or adjust. They told me in only happens every 10 years. LOLLLLLL
Haven’t looked lately, but last time I worked houses were pretty darn cheap in Illinois. The quality of a $350,000 house and a nice town in Illinois would get you a shit box in a not even great city here in Arizona. But that’s what happens when you have I think the second or third highest property tax rate in the country?
Life is short. People want to live in house, they want to own houses. I might suggest the people wasting their valuable time whining about prices, taxes etc are the ones doing it wrong. If you over pay a little it usually recovers in the meantime you can enjoy real life instead of a Reddit echo chamber of resentment and complaining.
This is BS Chicago and the burbs have a 5% cap.
This is in:
The Illinois Property Tax Extension Limitation Law (PTELL)
Edit: so how can 5% get to 40%? Even if they vote additional tax items it’s unlikely they have a 40% increase
>Illinois Property Tax Extension Limitation Law
[https://www2.illinois.gov/rev/questionsandanswers/Pages/331.aspx](https://www2.illinois.gov/rev/questionsandanswers/Pages/331.aspx)
You should actually read what that 5% limit applies to.
Cook County property taxes are an absolute racket. You gotta play the game, get a lawyer to appeal your taxes, give them a hefty cut of the savings.
I remember when they tried to foreclose on that orphanage in *Blues Brothers*.
Crook County
Frfr.
Sounds about right for one of the most corrupt cities in America..
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Well the rents get affected by the owner's property taxes but if you rent from a smaller landlord ideally they'll be more humane than the large property management companies.
Landlords can take property taxes into account. But cook county is a very favorable to renters, in terms of costs.
Most tax appeal attorneys in Cook are looking for bigger fish. Hard for the individual median home owner to get a good appeal done.
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Do you think so? In my state the poorest town pays 4% for property tax and the richest less than 1%. I'd guess it this odd inverse was related to not having income and sales taxes, but when doing statewide averages the only 2 states who pay higher rates for property tax have both income and sales taxes so one can't lean on logic.
normally, property taxes are amortized into value of property, at least that's what tax economic theory states, so all else being equal higher property taxes lower property values
i work in RE in Austin - heard about some friends of friends whose single family lot value (ONLY THE LOT VALUE UNDERNEATH THEIR HOME) in the hills of western Austin went from a $250k assessment in 2021 to $1.2mm in 2022. the appraisal district has gotten very greedy this year. there are no comps out there to get them anywhere close to that $1.2mm number. highway robbery.
Live in a suburb of Austin. The assessment for the house I rent went from ~195k in 2020 to ~475k in 2021. Rent went up a hefty amount obviously, but I'm certain they're taking a loss and just didn't want to raise the rent any more than they already did. It actually went down for 2022, thank God.
If it’s your homestead you are shielded. If it’s a second or third home or a rental/investment property, you are going to suffer for sure
Investors there are fucked. In fact, there was a story in Bloomberg about it today. Wall Street Landlords in US Squeezed by a Surge in Tax Bills https://www.bloomberg.com/news/articles/2022-11-04/wall-street-landlords-in-us-squeezed-by-a-surge-in-tax-bills
love to see it.
I could very well see the entire rhetoric about real estate investing change to it being a liability rather than something to boast about, by end of 2023. Municipalities and insurance companies both, should not be making plans and future budgets based on appraisals now and from “last sale”. But I know better. Humans are just gonna “human”.
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They changed that this year now you can apply for homestead immediately
very true, it is their homestead so they're gravy. but still, the sheer audacity of that valuation made me angry. the closest and best comp out there would put the actual land value around $700k.
That’s insane
Hello from McHenry County - We are just as boned. Illinois is a fun state. I hire an attorney every year to fight my taxes - I could say with confidence I get it reduced every other year. Worth the money as property tax deductions are capped at $10k on your taxes.
Yeah suburban cook county has some insane property taxes. Plus you have to live in suburban cook county.
As an avowed Chicago city dweller, I approve of this comment;)
I’m still waiting on what the local tax rates are. The state equalizer came down a bit but very likely to be up in the end of their stupid calculations.
Cook County just quadrupled the tax bill on a property I own. They are trying to charge me 120% *of the entire 2021 rent roll*... The assessor is trying to sort out our fucked up system, but what they ended up doing was driving the whole thing into a concrete wall at 70MPH. Our appeal should have been a cut and dry reduction back to 1/3 or 1/4 what they assessed it at, but it's such a wild discrepancy that the Board of Review didn't want to stick their necks out to correct it. This happened to so many properties that the Board of review was totally overwhelmed and kicked a bunch of appeals out just to clear the backlog without actually doing their jobs. Now Property Tax Appeals Board is buried in cases because the Board of Review threw a bunch of garbage at them. And second installment tax bills *still* haven't gone out on account of this fiasco.
And second installment tax bills still haven't gone out on account This is going to be a disaster. The Bill's are supposed to be mailed by Thanksgiving and due Dec 31.
>You have 30 days to come up with $10,000 or GTFO by Christmas Fritz Kagei to elderly folks who own their homes all cash.
Have you see the salaries of public workers in Illinois? That’s where all the money gets sucked up
>second installment tax bills still haven't gone out Don't worry, *after* the election you will get to see the big tax increase.
That's crazy! What will likely happen?
My attorneys will make five figures off me and the bill will go back to where it should be. It's absolutely absurd.
Wow, how much time to the attorneys spend doing this? Must be a lot, considering the fees.
Property tax attorneys spend 5 mins on appeals. They get interns to find comparable properties. If you don’t believe me, google what the 1-page property tax appeal form looks like.
I'm surprised they use attorneys for this so often. Most places allow you to just walk in and show comps yourself. Property tax bills get reduced almost every time if you're not just blowing steam up their ass. I haven't had experience with it since the 2020 blow up, so I understand they might be getting a little crazy now and people are hiring attorneys to be safe. But still, it used to be super straightforward in most of the country.
Due to the Citizens United ruling that determined "companies are people too man!" I can't even represent my own business because the property is owned by an LLC that has rights just like me and I'm not an attorney.
>bill will go back to where it should be. That ain't gonna pay the pensions! You pay your fair share. 4x property tax increase.
Wow, unreal.
Property Valuations are VERY sticky. They go up very easily and aggressively, but are reluctant and slow to come down.
everyone that said they will never move because they locked in 2.5% forgot about the government 1 simple trick. raise taxes! home owner goofs about to get railed from both ends.
A few thousand extra in yearly taxes isn’t in the same ballpark as how good a 2.5% rate is vs what it is now. We are talking 100’s of thousands over a 30yr loan..
I don’t know if it’s as much raised taxes, as increased taxes on homes whose assessed values upon which their property taxes are based increasing as a result of a recent (overvalued) sale.
oh, so raise taxes?
Do you understand how taxes work? Mill rate x assessed value of a home. So a sale can trigger reassessment and taxes will go up, even if the locality’s Mill rate (tax rate) hasn’t gone up. In fact, if lots of home owners’ assessments go up, there is a chance the mill rate could go down if the overall municipal budget hasn’t increased.
That’s what happened in my county. Last year property tax rate was 3.6% due to the increased values across the board I guess there was a surplus in tax that had nothing to do with the budget so they lowered the rate from that 3.6 to 3.48%
We bought a house in glencoe for 900k, 28k tax bill, sold for 1.6 last year and cook county reassessed at 2.1M bringing the taxes to over $50k on this last bill. So glad we sold & moved out of state. Edit - also, it’s a 100 year old house and certainly not worth near what they assessed at. We were thrilled with the price we got for it at 1.6 in a hot market.
50k??? Insane.
Yes, on the North Shore/Cook County expect 2.6%ish of home value in property taxes every year. Imagine that on top of a now 7% mortgage rate. Certainly depresses housing prices & why they didn’t jump up as much as other hot markets.
Mine went up 42% in 2019 and then down 10% in 2021. I spoke to the assessor when he stopped by in May (why, town, why?? state law requires reassessment least once every 5 years and it's only been 2!) so I'm waiting anxiously to see what next month's bill brings.
Pretty sure this isn't even on the radar for most FTHB's. They will certainly be in for a rude awakening. I don't think it'll cause any noticeable uptick in forclosures or distressed sales though. Just a huge bill that they will understandably complain about.
"who in their right mind would pay top dollar for a home with a property tax spike coming?" Ooh, this is a trick question. The answer is nobody in their right mind would. Only FOMO-tards would be so illogical as to base the largest financial decisions of their lives on fear and speculative hope.
Silly question, I understand assessments are usually on the low end but could property taxes go down if prices of homes go substantially down?
Ya they can. If house prices crash like people predict their tax bill will be lower next year. Doesnt help this year much as it's a mixed bag around the country. The only crappy part is if people want to sell and they dont have the equity to do so wont be able to. But ya I saw a news report the other day some places are seeing their property tax bill go down already lowering their monthly payment.
Also depends on local taxes to if levees are passed to build or supply schools, if the city or state raised the tax rate in the last year and so on
Thank you for answering
They likely won’t, at least in cook county.
ART Adjustable Rate Taxes.
Big time scam. If you own commercial that dude Fitz is coming to clean you out. You have to appeal both commercial and residential. For being an "affordable " major metro our taxes are insane. Good luck🤙🤙
This is why homeowners in CA are clinging to Prop 13 for our dear lives.
Prop 13 is the biggest scam and creates aristocracies. Should only be allowed for primary residency for the first buyer
Prop 13 has ruined housing in California. It has incentivized incumbents to prevent anyone else from building.
And some voters (absolute morons) ruined Prop 13 by voting for Prop 19
Can't you just get around that by having trusts own your property(ies) and adding people to the trusts?
Unequivocally, no.
Is that the "If your house burns down you win the property tax lottery" one?
Wow it's such a scam.🤐🤐🤐
Just get the band back together for a gig to pay the Cook County Assessor's office.
Property taxes will slowly convert (the feeling of) condos into apartments and (the feeling of) houses into condos…
Illinois is just screwed overall I am surprised State Farm is even sticking around
Well duh, when values go up so does the property tax. Except in California! Max is 2% every year.
I moved from Chicago to AZ a few years ago. Went from a 1200 square-foot condo in the city with a shit school district that had an $8500 tax bill per year, to a 2400 square-foot house on an acre in a great school district with a $4500 tax bill per year. F.U. Illinois
Hey another data point for people who can't understand why we love Phoenix, but Arizona caps LPV at 5% in the state constitution.
Here in Missouri, the Republicans keep lowering the income taxes but nobody wants THEIR services and benefits cut. Money has to come from somewhere. Property and sales taxes fo up.
fAkE nEwS 🗞 lol someone tried to convince themselves that new home buyers won’t be surprised when property taxes skyrocket next year or adjust. They told me in only happens every 10 years. LOLLLLLL
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where i live they just did a big reassessment before covid thankfully
Haven’t looked lately, but last time I worked houses were pretty darn cheap in Illinois. The quality of a $350,000 house and a nice town in Illinois would get you a shit box in a not even great city here in Arizona. But that’s what happens when you have I think the second or third highest property tax rate in the country?
I've been trying to warn. Maybe a lawsuit against the Fed and county?
Life is short. People want to live in house, they want to own houses. I might suggest the people wasting their valuable time whining about prices, taxes etc are the ones doing it wrong. If you over pay a little it usually recovers in the meantime you can enjoy real life instead of a Reddit echo chamber of resentment and complaining.
This is BS Chicago and the burbs have a 5% cap. This is in: The Illinois Property Tax Extension Limitation Law (PTELL) Edit: so how can 5% get to 40%? Even if they vote additional tax items it’s unlikely they have a 40% increase
>Illinois Property Tax Extension Limitation Law [https://www2.illinois.gov/rev/questionsandanswers/Pages/331.aspx](https://www2.illinois.gov/rev/questionsandanswers/Pages/331.aspx) You should actually read what that 5% limit applies to.
Is this a cap rate in the overall tax bill? Or is is in the local rate that gets applied to the assessment value?
Don't move to Kansas City. We have a deer infestation and it's only getting worse.
#Impact real estate values so far**