Illinois woman’s property tax is poised to pop from $756 to over $10,000

[GON]

Wow, blown away by this article. Illinois woman’s property tax is poised to pop from $756 to over $10,000, a shocking 1,222% spike. Here’s why she’s not alone.

I had to read the article a few times. Seems the computation of woodland now comes in at the same rate as a homeowner land. What the article doesn't discuss is the underlying reason for the increase in the first place- a state with massive debt, deficit, ten plus continual years of population decline, and a exodus of private businesses that use to pay taxes to the state. The money has to come from somewhere. Can't force people to spend money on sales tax that left the state, guess only people left to pay the debt and deficit are the property owners.

If you live in a state with huge unfunded entitlements, large debt and deficits, and declining population- might be worth looking at your options, I can see a like scenario happening in the future in a handful of other states.

https://finance.yahoo.com/news/illinois-woman-property-tax-jumping-130100135.html

 

[dishdude]

Wow, blown away by this article. Illinois woman’s property tax is poised to pop from $756 to over $10,000, a shocking 1,222% spike. Here’s why she’s not alone.

I had to read the article a few times. Seems the computation of woodland now comes in at the same rate as a homeowner land. What the article doesn't discuss is the underlying reason for the increase in the first place- a state with massive debt, deficit, ten plus continual years of population decline, and a exodus of private businesses that use to pay taxes to the state. The money has to come from somewhere. Can't force people to spend money on sales tax that left the state, guess only people left to pay the debt and deficit are the property owners.

If you live in a state with huge unfunded entitlements, large debt and deficits, and declining population- might be worth looking at your options, I can see a like scenario happening in the future in a handful of other states.

https://finance.yahoo.com/news/illinois-woman-property-tax-jumping-130100135.html

It's for 96 acres of land! Not a common scenario for most people.

 

[GON]

It's for 96 acres of land! Not a common scenario for most people.

Non concurrence. In rural areas (and most non rural areas), woodland is often taxed at a like rate as farmland.

 

[SC Maintenance]

If you live in a state with huge unfunded entitlements,

This is every state. They either have huge unfunded entitlements, or their books are cooked.

This is always been the issue with real property as an investment. As soon as they’re short money, they’re going to extort it from the owner.

 

[dishdude]

Non concurrence. In rural areas (and most non rural areas), woodland is often taxed at a like rate as farmland.

That's fine, but the headline reads like some little old lady's property tax on her 3 bedroom 1.5 bath ranch spiked.

Not sure what an individual is doing with 96 acres of woodland?

 

[JohnnyG]

"In rural areas (and most non rural areas), woodland is often taxed at a like rate as farmland."

....as it should remain. Except for the reasons you state of course.
Kinda like California,right?

 

[supton]

Not sure how sad/shocked I am. Coworkers with "normal" houses (for the area) have had taxes like that for years--but not on 96 acre lots. [But on the flipside, no income/sales tax, I get it--but the number itself isn't shocking to me, that's all.]

 

[GON]

This is every state. They either have huge unfunded entitlements, or their books are cooked.

This is always been the issue with real property as an investment. As soon as they’re short money, they’re going to extort it from the owner.

Six states/or jurisdictions have fully funded pensions (funded status above 100%): South Dakota, Wisconsin, Washington, Tennessee, Utah and Washington, D.C. I can't say to the condition of their accounting practices.

On top of that, at least one state has zero long term debt and no operational deficits- South Dakota.

 

[SC Maintenance]

That's fine, but the headline reads like some little old lady's property tax on her 3 bedroom 1.5 bath ranch spiked.

Not sure what an individual is doing with 96 acres of woodland?

When they run out of Woodland to tax, they will go after the little old lady.

 

[SC Maintenance]

Six states/or jurisdictions have fully funded pensions (funded status above 100%): South Dakota, Wisconsin, Washington, Tennessee, Utah and Washington, D.C. I can't say to the condition of their accounting practices.

On top of that, at least one state has zero long term debt and no operation deficits- South Dakota.

I stand corrected. 44. And likely Puerto Rico.

 

[GON]

When they run out of Woodland to tax, they will go after the little old lady.

Bill Gates will buy the woodland, as no sane individual will with a $10k USD annual property tax bill, that will continue to rise.

Bill Gates will harvest the wood and sell it and then convert the woodland to farmland. Gates will then have the significantly reduced property tax when compared to woodland. Gates will next apply and receive payment for not farming the land. And the existing property owners will see an even bigger increase in their property tax to pay the burden of activities by Gates and his private equity pals.

 

[mrsilv04]

The problem is, woodland is typically not productive. Even if the expense is made to clear it for farming, there's likely a reason why it has been left to be woodland.... meaning it isn't suitable soil for farming. Farm ground makes income through corn, beans, and wheat... or to a lesser degree... for cattle through hay production or grazing. Woodland only makes money if the timber is desirable for logging, and if there is a mill within reasonable distance to process the timber.

 

[SevenBizzos]

I remember when that went through. There was a rush to have the land rezoned so it wouldn't be treated like residential. She's been getting a deal and probably knew about it.
Secondly, Illinois property taxes stay in the county. Two-thirds of our bills stay in the school districts. Add up townships, local colleges, municipalities, fire districts, mosquito districts, counties, forest preserves, and libraries and that's your tax bill.
The state refused to fund it's portion of the pension system for decades. The income tax was 3% flat and the sales tax wasn't bad, so revenue never could match the spending. We had a run with a (soon to be convicted) felon in charge of the legislative arm who made lots and lots of unfunded promises.

 

[GON]

We had a run with a (soon to be convicted) felon in charge of the legislative arm who made lots and lots of unfunded promises.

You think he will be convicted? I would not take that bet. Almost every sitting judge in the state had to be "signed off" by him personally.

Is he the significant reason for the state's current fiscal condition- without a doubt yes.

 

[IndyIan]

There is probably a program or designation she can get to put her property into, to get taxes back to farm levels. I do have a similar size property and the house and one acre is one line, the rest is another. Half is in a managed forest agreement, and then the other half is taxed by its usage, farming(hobby farm).
Forest usually has the lowest farm value per acre, so once she jumps through a hoop or two, she should be back to the low tax rate. Or if everyone is unreasonable, clear cut it, now its farm land....
Usually the rich guys own the land and make the rules, so I'd be very surprised if the folks with 3000 or 30,000 acres is going to be paying much taxes on it, there is usually a way to get out of taxes for those folks... She just has to find the same way.

 

[Pew]

I'm not here to fight whether the tax increase is right or wrong, but she had over 15 years to figure out a plan.

 

[doitmyself]

There is probably a program or designation she can get to put her property into, to get taxes back to farm levels. I do have a similar size property and the house and one acre is one line, the rest is another. Half is in a managed forest agreement, and then the other half is taxed by its usage, farming(hobby farm).
Forest usually has the lowest farm value per acre, so once she jumps through a hoop or two, she should be back to the low tax rate. Or if everyone is unreasonable, clear cut it, now its farm land....
Usually the rich guys own the land and make the rules, so I'd be very surprised if the folks with 3000 or 30,000 acres is going to be paying much taxes on it, there is usually a way to get out of taxes for those folks... She just has to find the same way.

https://www2.illinois.gov/dnr/xxconservation/Forestry/Documents/IFDAFactSheet6_06.pdf
"any land being managed under a forestry management plan approved by the Department under the guidelines of the FDA shall
be considered as “other farmland”. The land shall be valued at 1/6 of its equalized assessed value based on cropland."

 

[GON]

I'm not here to fight whether the tax increase is right or wrong, but she had over 15 years to figure out a plan.

The number of years is irrelevant.

Being taxed out of one's property is the issue, be it one years or twenty years. The reason being taxed out of the property is very sad, and a slap in the face to the hard-working people of Illinois.

 

[02SE]

It reminds me of well-known quote by Margaret Thatcher.

 

[GON]

It reminds me of well-known quote by Margaret Thatcher.

hmmmmmm??????