Lakewood Mayor Dodges High Property Taxes, Moves….

[Tim Liston]

The Mayor of Lakewood, Illinois finally decided enough is enough, at least with respect to Illinois’ highest-in-the-nation 2.67% property tax. He’s picked up and moved to Decatur, Alabama.

Leaving Illinois: How Simple Math Chased Away a Village Mayor and His Family (click here)

”What are his Alabama property taxes going to cost him? Just $2,200 a year. That’s a lot lower than the $15,400 he’s paying on the home in Lakewood. If Serwatka saves that $13,000 difference every year and invests it at 6 percent annually for the next 20 years, he’ll have accumulated savings of more than $600,000 dollars.”

Simple math indeed. I wonder what might have happened if his tax rate was even higher than 2.67%. Like say 3.2% or so. At 3.2%, the property taxes you pay are worth more than the home you pay them on. Obviously nobody would do that, would they?

Simple math indeed. Arithmetic actually. BTW your bill is due today....

[Bridget Conant]

People buying homes look at how much it will cost them in total - basically the monthly payment. That’s P&I and property taxes.

The higher the property tax, the less they can consider for Principal and interest, which means they have to buy a cheaper house. Which means they’ll offer less on yours.
Which means, at some point, the high taxes here exert downward pressure on sales prices.

Sure, clap your hands over the mini boom we’re having, but it’s not sustainable. The high taxes and a coming recession will impact Lakewood negatively.