Steve Balich Editors note: As taxes increase property values decrease. That is as simple to understand as the reason so many people are leaving Illinois. Those that work in government and education are now the ruling class. Those not in this class must pay increasing pensions and wages for this upper class or move. Seniors and those on a fixed income are doomed to less disposable income for their monthly budgets with increased taxes and fees. The result for those on fixed income is unfortunately, sell the home and move to another State, or loose the home at some point in a tax sale.
People who paid off their Mortgage think they own their home. Fact is they pay yearly taxes to the government or have that home taken away. I like to think of my property tax as rent. I understand I will be evicted if I don’t pay. If you are a renter remember the property owner gets increases in taxes which is passed on to you as a renter. At some point it is economically smart to leave Illinois for everyone but those working in government and education.
Some municipalities have approved, or are considering, charging a “transfer tax” on homes of a certain value.
A proponent of the additional fee is on incoming Gov. J.B. Pritzker’s transition committee, but there’s no plan to implement a statewide tax. Supporters say it generates revenue to fund needed programs, but the real estate community says it’s likely to backfire, costing renters more and ultimately depressing property values.
The city of Evanston now charges a higher transfer tax, sometimes referred to as an “exit tax,” on property sold for more than $1.5 million. Properties that sell for more than $1.5 million come with a transfer tax of $5 per $1,000 of sale price. A referendum voters approved raises that to $7 per $1,000 of sale price. For properties that sell for more than $5 million, the transfer tax will now be $9 per $1,000 of sale price.