Below is a re-post of something I posted on FR a while back...
I found a cheap little home in Carbondale Il just the other day.
It was a 3 bdrm with a small bungalow behind the main house.
..just 42,000 and the place was well maintained.
Looked up the tax info on the county website and it said 0.00
Turns out it was owned by something called the Southern Illinois Homeless Alliance.
They said it would have to be re-assessed once it was sold by the non-profit group.
The tax rate is 10.25% per year on the assessed value.
The tax could end up being close to 5,000/yr ..on a dinky little home like this!?!?
I said to the Realtor “I thought maybe I could rent the bungalow to pay the taxes...but I’d have to live in the tiny bungalow and rent the house instead!”
I liked the place because it’s on a quiet street and within waking distance of a WalMart Supercenter (I have small dreams..lol)
This is madness! Taxation has turned this nice little home into a money sucking nightmare.
https://www.instantstreetview.com/@37.726004,-89.198314,-136.1h,-5.48p,2z
“The tax could end up being close to 5,000/yr ..on a dinky little home like this!?!?”
This is by far, the highest property tax I ever heard of.
Isn’t there an exemption amount, before the tax kicks in, in IL? Like, if the house value is $42,000, then it is taxed on $12,000 or along that line? I thought I remembered something about an exempt amount.
Your story is exactly what is killing NJ; who buys a home with taxes starting over $10K? At this point only government employees and immigrants who convert one-family homes into three-family homes or boardinghouses.
Literally.
Property taxes are high in Illinois, but not that high. Property taxes vary from county to county, but aren't going to be that much different. A $50K house in my county has a yearly property tax of around $1.1K or so. A $100K home would have a $2.2K yearly property tax. If Carbondale is like my county, the tax assessment is about a quarter of the value of home. On a $42K home. The assessed value would be $10.5K. With the tax rate being 10.25%, the tax would come to $1,076.
My alarm bell is going off on this house. There could be all sorts of deed restrictions if Federal or State money was used to fix it up.
The tax could end up being close to 5,000/yr ..on a dinky little home like this!?!?
They divide the estimated market value by 3 to get the assessed value.
Think closer to $1450 for your taxes.