obviously the trends are no good if

you’re a property tax owner because

unfortunately

the property taxes just keep going up

you know it’s a highly political topic

for

all politicians that run for office it’s

it’s highly political for the governor

it’s political for the mayor of the city

of chicago it’s political for every

local municipal mayor

village president because all the

residents that reside

within those voting districts don’t want

to pay any more money than they’re

currently paying would actually like to

pay less

in property taxes and unfortunately

the masses the people out there

while they might not be experts in

property taxes or property tax appeal

work

the masses quickly figure out that there

are less expensive places to live

which is why unfortunately we’ve seen a

pretty heavy exodus of people

from the state of illinois to other

areas even in our geographic region so

into

northwest indiana southeast wisconsin

iowa michigan

they all carry lower property tax

burdens than we do here in illinois for

example like the again you know the

the

the small municipal town that i live in

the property tax burden on residential

real estate is roughly two percent of

the property’s value so if you own a

500 000 home

your property taxes are going to be ten

thousand dollars per year

okay

if you own a million dollar home they’ll

be twenty thousand dollars per year

just to give you some comparison

in

arizona the state of arizona the

property tax burden is about 4 000 per

million or four tenths

of a percentage point per million

so it’s almost

three times

the burden

in illinois it’s the same for colorado

it’s the same for a lot of western

states wyoming

um

and so that that increased property tax

burden

is pretty significant for people that

live here and i’ll just add one more

thing and i’m going off on a little bit

of a tangent but

before

the federal government created the salt

cap which is state and local taxes

all property owners no matter where they

lived residential property owners were

able to deduct

a hundred percent of the real estate

and income taxes paid

to their given state

from their federal income taxes so let’s

just say hypothetically

you had a property tax bill of thirty

thousand a year

and you paid the state of illinois

twenty thousand dollars in state income

tax

that gave you a fifty thousand dollar

deduction

off your federal income tax liability

when they amended the tax code

in in donald trump’s

era

they put a cap of ten thousand dollars

on all state and local taxes

and that was their way of saying we’re

going to punish

fiscally irresponsible states that have

high income taxes

and high property taxes so

in my example

okay

you could only now deduct of that fifty

ten thousand dollar cap

so forty thousand dollars no longer

deductible because of the salt cap at

the federal level

if you’re in a forty percent tax bracket

that equates to sixteen thousand dollars

of actual cash per year

that you have lost

as a result of the salt cap so

prior to that cap being put in place

it was a little more palatable

when you could deduct all of your state

and local taxes from your federal income

tax liability

but with that cap being in place

it’s really um

you know flip the switch for a lot of

people that live in illinois that have a

very high

real estate and property tax burden and

investors as well