Mike F. owns a 3,230 square foot, 4-bedroom, 5-bathroom Peoria home that is currently assessed at $276,600.
“Retiring is very difficult with these property taxes,” Mike said. “You can’t do it.”
Mike took possession of the home in 1997 when it was worth around $240,000, or $377,478 in today’s dollars. He has paid $147,871 in property taxes since 1998, more than 61 percent of the original value of his home.
“I’m trying to sell my house,” Mike said. “I’m trying to get out.”
Mike is currently paying $8,662 per year in property taxes on his home, about 3.1 percent of the Peoria County Assessor claimed value of $276,600.
“They waste [our taxes],” Mike said. “People are leaving this state one out of every five minutes to get out. It’s sad. It’s sad the number of people I know that say they’re selling their house and they’re gone.”
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.
“The tax cap is reasonable,” Mike said. “You can afford that. It would be fair.”
If Mike lived in Indiana the most he could be charged in property taxes would be $2,766 per year or $5,896 less than what he currently pays in Illinois.
“The government is taking my money and wasting it,” Mike said.
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