Bob Anderson recently wrote another letter about his favorite bugaboo: his belief that too many units of local government contribute to high property taxes inIllinois. In his attempt to make this connection, he offers an example. He writes, “Homeowners in Illinois pay $5,500 in real estate tax on a $217,000 home. The U.S. medium is just $1,942 on a $217,000 home.” Using Mr. Anderson’s figures, that is a difference of $3,558, which he implies is due to too many units of government.
On my real estate property tax bill, the amount going to my local township government is less that 4%. Assume that I am an average Illinois homeowner in a $217,000 house paying the average $5,500 in property taxes. Also assume that my township government can be gobbled up by McHenry County government without any decrease in services and without a corresponding increase in county taxes. (That’s a lot of assuming.) Then my average Illinois $5,500 property tax bill will go down by 4%, which is $220.
Big whoop. Too many assumptions for too little savings.