Bill S.: It erodes the value of the property because nobody wants to pay those kinds of taxes anymore

Bill and his wife Colleen own a 4,218 square foot, four-bedroom, four-and-a-half-bath Cary home that is currently assessed at $451,953.

Bill and Colleen bought their property in 1999 where they built a home in 2003. They have paid $256,356.51 in property taxes since 1999, around 56 percent of the current appraised value of their home.

“It’s about 5000 square feet on an acre of land,” Bill said. “The problem is that the house isn’t holding the value anymore. Basically, nothing in my neighborhood sells anymore.”

Bill is currently paying $1,275.24 per month in property taxes on their home, more than three percent of the McHenry County Assessor claimed value of $451,953.

Bill is currently paying $1,275.24 per month in property taxes on their home, more than three percent of the McHenry County Assessor claimed value of $451,953.

“The exceptional amount we have to pay out. That’s number one,” Bill said. “Number two, it erodes the value of the property because nobody wants to pay those kinds of taxes anymore. There’s no appreciation of the property values. In fact, just in the last few years, they’re still going down.”

Indiana has a hard 1 percent cap on property taxes. This means local governments are not allowed under state law to charge homeowner’s more than 1 percent of their home’s assessed value per year. The average property tax rate for the state of Indiana is 0.89 percent. Meanwhile the average property tax rate in Illinois is 2.3 percent.

If Bill lived in Indiana the most he could be charged in property taxes would be $4,519.53 per year or $10,783.35 less than what she currently pays in Illinois.

“Definitely thought about moving,” Bill said. “Haven’t taken any action yet. We’re underwater on our house, so that’s part of the reason. But I also have one more child in high school. She’ll be there for two more years so that has an impact as well. It is possible that we may consider leaving after she is done with high school.”