The Cook County Treasurer has announced that the 2020 2d Installment Property Tax Bills will be mailed during the end of August 2021, with an estimated due date of October 1, 2021.
Illinoisans pay one of the highest sales tax rates in the nation when local and state sales taxes are averaged. The average rate of 8.83% was up slightly from a year earlier.
If you buy something in Illinois, combined state and local sales taxes increase the sticker price by an average of 8.83%.
That rate from July 1 is up slightly from the rate a year earlier when the Tax Foundationdid its mid-year sales tax survey. The average was up 3 cents on a $10 purchase from a year earlier in Illinois.
Illinoisans all pay 6.25% in state sales taxes. They pay an additional 2.58% on average in local sales taxes to reach the 8.83% rate, which places Illinois 7th highest in the nation. Louisiana took the No. 1 spot with a 9.55% average.
The local tax rate average was calculated by weighting rates by population. The Tax Foundation found the maximum local tax rate in Illinois to be 9.75%, which was the highest in the U.S.
Residents of Chicago pay a total rate of 10.25%. It’s the highest combined sales tax of any U.S. city with at least 200,000 residents, a title Chicago has held since the Cook County Board passed a sales tax hike in 2016.
Illinois sales tax averages have crept up to 8.83% from 8.22% between 2021 and 2015, according to the Tax Foundation. Illinois was 10th in the nation for sales taxes in 2015 but is now No. 7.
Sales taxes, income taxes, property taxes gasoline taxes and cell phone taxes are all among the nation’s highest in Illinois. An Illinoisan over a lifetime will pay $693,792 in taxes, which is 43% of everything that person will earn and is one-third more than the U.S. average.
State leaders have yet to admit nickel-and-diming residents is hurting the state, but the 2020 U.S. Census found Illinois lost population for the first time in 200 years.
A huge culprit in the exodus is Illinois’ second-highest in the nation property taxes. Illinois’ residential property taxes have grown 3.3 times faster than median household incomes since 1990. Total state property taxes outpaced population growth 14 times over since 1963.
This rapid growth in property taxes has been driven by state lawmakers’ need to meet exponentially increasing shortfalls in Illinois’ worst-in-the-nation pension crisis. State spending on pensions has mushroomed over 533% since 2000 while state spending on social services has dropped by nearly 15%.
As a result, a quarter of every dollar spent by the state in 2020 went to propping up Illinois’ pension obligations. That amount increased to nearly 30% of the total state budget in the fiscal year that began July 1.
Public pension reform received bipartisan support from state lawmakers and the governor in 2013. But a ruling in 2015 by the Illinois Supreme Court means the only way to achieve it for Illinois state and local governments is through a constitutional amendment.
Pension reform is the greatest step Illinois could take to control the constant upward creep of sales and other taxes.
Campos and her fiancee read the letter in shock. The property management company gave them four days to decide whether to commit to stay or leave by the end of July. They spent the rest of the day poring over apartment listings online, only to realize they would either have to move or downsize from their two-bedroom place to a one-bedroom.
“It almost feels like there is nowhere to go. It’s just insane everywhere,” said Campos, 28, a lifelong Phoenix resident who has noticed a growing number of California license plates in her complex’s parking lot. “It feels like I’m being chased out of my own home, and it’s the worst feeling in the world.”
Slow trickle of rental aid heightens concern about eviction crisisRents are starting to surge in many parts of the country as the economy reopens and young people return rapidly to cities. On top of the influx of millennials and Gen Z renters coming back after staying with family or friends, people who can work from anywhere are still relocating to lower-cost cities, and the hot home sale market has caused some baby boomers to sell their family homes and rent again now that their kids are grown.
Nationwide, rent prices are up 7.5 percent so far this year, three times higher than normal, according to data from Apartments.com. Analysts expect rent prices to keep climbing for the foreseeable future, a major burden for renters and a warning sign that higher inflation could linger far longer than the White House and Federal Reserve keep predicting.
The economy isn’t going back to February 2020. Fundamental shifts have occurred.“I think we’re going to see increases for the next 12 to 18 months,” said Robert Pinnegar, president of the National Apartment Association. “We’ve never had three generations in the rental housing space, at least not in the numbers we’re seeing now.”
Demand for two particular types of rentals is especially high: single-family homes and apartments in smaller cities that have less inventory. Rents for single-family homes are growing at the fastest pace in 15 years, according to data firm CoreLogic. Parts of the country that used to be considered affordable are suddenly experiencing the kind of rent frenzy with bidding wars and surging prices that had previously been exclusive to mega cities like San Francisco and New York City.
“I tell my buyers: It’s a terrible time to buy, but it’s an even worse time to rent,” said Chey Tor, a Realtor at Re/Max Ascend Realty in Scottsdale, Ariz.
$1 million over asking: D.C. bidding wars escalate as U.S. housing crunch intensifiesPhoenix is among more than a dozen cities that have seen over a 10 percent spike in rents in the past year, according to Zillow, a real estate website for sales and rentals. The top cities for soaring rents include Boise, Idaho, Riverside, Calif., Spokane, Wash., Tucson, Stockton, Calif., and Las Vegas — what Realtors have dubbed the “Inland West.” Realtors in these places say they have been inundated with calls from young people and families who want to relocate from pricier parts of California and Washington state.
San Francisco and New York City are among only a handful of cities where the typical rent price is still below pre-pandemic levels, according to Zillow, though there are signs of a rebound there, too. So-called “rent concessions” where landlords offer a month or two of free rent or waive the deposit have dropped sharply in recent weeks. In November, 60 percent of downtown urban listings on Apartments.com offered concessions. In June, just 35 percent did.
Jason Geroux, owner of 4:10 Real Estate in Phoenix, said he has managed rentals for nearly 15 years and never seen anything like this. His rental listings are often getting more than a dozen applications. People call him and offer to pay more than the asking price for the rental, effectively creating bidding wars on rental properties. On two recent listings, so many people offered to pay more money that he had all the applicants write down their best offer.
FAQ: The CDC’s final eviction moratorium expires July 31.“Potential renters are saying, ‘Hey, what if I offer $500 more a month?’ It’s just crazy stuff,” Geroux said. “For past 12 months we’ve seen supply going down and demand going up. It’s just caused things we haven’t seen before.”
Landlords in many of these inland cities are realizing the power they suddenly have. One of Geroux’s clients recently asked for a 50 percent rent increase. Geroux, an advocate for affordable housing, tried to talk the client to a lower amount, but he was not successful. Many cities outside the coasts do not have caps on how much rent prices can go up because they have never seen this kind of surge before.
If a renter is not willing to pay the higher rate, landlords are confident they can find someone else — or sell the property.
The post-covid luxury spending boom has begun. It’s already reshaping the economy.Nick Kasoff, a landlord of 15 properties in Ferguson, Mo., gets at least a call a day from investors asking if he is willing to sell one of his rental homes. So far, he has said no.
“I can’t even answer my phone anymore,” Kasoff said. “As soon as they ask for Nicholas, I know exactly what it is. No one calls me Nicholas unless they look me up on property tax records.”
For years, the United States has not had enough rental properties, especially affordable ones in urban areas. The problem is even more acute now as some building projects were put on hold during the pandemic and some rental homes were sold off this spring during the housing market boom.
Michael Kobold has been renting in Boise since he lost his home in the financial crisis of 2008-2009. A year ago, he was paying $750 to rent a house with a big garage for his art studio. The rent jumped to $1,450 this month. Kobold felt he had no choice but to pay it. He brought in another roommate to help split costs, but even with three of them now, money is tighter than it was before.
“If you leave, then you’ll end up out on the street,” said Kobold, who is 69. “The problem is all these people from California moving in here. They are paying for a house sight unseen.”
20 million Americans still don’t have enough to eat. A grass-roots movement of free fridges aims to help.The trend of small and midsize cities seeing surging rents is different from in the past. According to Zillow, the last time rent increases nationwide were jumping this much was 2015 when San Francisco and San Jose topped the list of highest rent increases along with Denver, Honolulu and Portland, Ore. So far in 2021, none of those cities appear in the top 80 for rent increases, according to Zillow data through May.
The pandemic caused Americans to put a greater emphasis on wanting more space and a more reasonable cost of living. But as prices rise in smaller cities, especially in the Inland West and Sun Belt, economists and Realtors warn there will be unforeseen consequences, and it could take years before enough housing is built in these areas to alleviate price pressures.
“It’s hard to keep up with the demand shift in the housing market because building homes is slow and encumbered by a lot of red tape and geographic challenges,” Zillow chief economist Jeff Tucker said.
Wall Street is also starting to notice the high demand and low supply in the rental market and the potential profits that could be made. Private equity firm Blackstone recently purchased Home Partners of America, which manages about 17,000 rental homes, for $6 billion. And J.P. Morgan Asset Management and American Homes 4 Rent announced a deal last year to build more rental homes, targeting the West and Southeast.
Why is inflation rising? Our economics reporters explain and answer your questions.It is not clear yet what all of these trends will mean, but most economists and investors predict high demand for rentals for months to come. That is likely to push up inflation since rent makes up about 40 percent of the consumer price index that the U.S. government calculates each month.
The latest inflation data from May showed a modest 1.8 percent increase in rents for main residences, but experts think that could rise this summer and fall, especially given what they are seeing from sites like Apartments.com and Zillow. The fact that wages are rising at one of the fastest paces since the early 1980s also gives landlords confidence to hike rents.
“Core inflation could stick over 2 percent faster and longer in this expansion because shelter inflation should pick up,” said Logan Mohtashami, a former mortgage broker who is now lead analyst for HousingWire. “If we do really see wage growth at the bottom end, landlords will ask for more rent.”
In many parts of the country that have not seen this kind of rent pressure before, it is hitting especially hard — and making people worry that prices will keep climbing. The United States also has a growing number of people living on fixed incomes as they retire, making them especially hard hit by rent increases.
Pamela Porter, 68, lives in a one-bedroom apartment in a retirement community in Fort Worth. She just received notice her rent is rising by $40 a month to $780 — a 5 percent hike.
“I’ve noticed food prices going up. And gasoline. Oh my. That shot through the roof,” Porter said. She said $40 may not sound like a lot, but “that increase could definitely impact my ability to buy groceries and buy my medicine. I’m not going to even mention car repairs. Life shouldn’t be this hard.”
‘Senior freeze’ tax errors exposed by Sun-Times could delay property tax bills
Cook County Clerk Karen Yarbrough tells county Assessor Fritz Kaegi she won’t calculate tax rates till he fixes ‘major errors.’ Kaegi says she doesn’t have that authority.
The Illinois Department Revenue has announced that the 2020 Cook County Tax Multiplier will be set at 3.2234 an increase of 10.5% over the 2019 Tax Multiplier of 2.9160.
Many Hoosier legislators and administrators quote the Foundation’s State Business Tax Climate Index. As of July 1, 2020, Indiana ranked #9 among the 50 states. That places us in the top quintile of favorable states. Such eminence! We’re up there with Wyoming (#1), South Dakota (#2), and Alaska (#3).
How do we get to be #9? For that Index, we rank #13 in Corporate Income tax, #15 in Individual Income tax, #20 in Sales tax, and #27 in Unemployment Insurance tax. There must be something that propels us up to #9. Turns out we are #2 in Property taxes on business and that offsets all those other taxes.
In the early 1970s, Indiana got about a third of its state and local tax revenues from property taxes. Today, about a quarter of our tax collections come from property taxes.
On a per capita basis, including every infant, our property taxes are $1,033 and we rank 39th behind the highest state, New Jersey ($3,378 per capita), with Alabama 50th at $598 per capita.
Alternatively, Indiana ranks 30th with property tax paid at 0.81% of owner-occupied housing value. By this measure, Alabama is lowest (at 0.37%) among the 48 continental states, while New Jersey is again in first place at 2.13% of value.
While Indiana is low on property taxes, we make it up on sales taxes. Our 7% statewide sales tax rate is the highest in the nation (tied with MS, RI, and TN). Unlike most states, we don’t permit local sales taxes or have a statewide sales tax earmarked for local governments.
Cook County voters would be asked to weigh in on whether to raise property taxes as a way to stabilize the Forest Preserves’ finances during the November 2022 general election under a proposed referendum that all commissioners in charge of the district indicated they want on the ballot.
All 17 commissioners have signed on as co-sponsors of the potential referendum, which was sent to a committee this week for further consideration. Although their support doesn’t necessarily amount to a tax hike endorsement, the move paves the way for the voters to say “yes” or “no” next year to property owners opening their wallets to help maintain the 70,000 acres of green lands, trails and water that officials say are in dire need of more cash.
to all the hard-working dads we deal with throughout the year.