E. asks from Montgomery, IL on July 13, 2007
1St Year Property Tax on New construction-Land Value Vs. Full Taxes-Kendall Cnty
We just received our first property tax bill from Kendall County and were totally shocked. Both our builder and attorney told us that the first year would be assessed on land value and would be just a few thousand dollars. We moved in to our home in March 2006 and are now paying those taxes. I called the assessor and they told me I was told wrong. I guess I can't argue with that but was curious if anyone had heard of this before. We went and talked to the builder last night and she still says our taxes should be based on land value. I'm so confused.
D.K. answers from Chicago on July 14, 2007
Many builders tell homebuyers this and it is a scam. We were also told the same thing, but my husband checked with an attorney who gave us the real deal and we were able to save the amount of money we thought we would owe. Unfortunately, taxes are real big with new construction and many of my neighbors have had to put thier houses back on the market. Was Ryland your builder by any chance?
A.G. answers from Chicago on July 17, 2007
If you moved in back in March 2006, there was a full completed house there from March 2006 thru December 2006. At closing the builder should have given you a credit for the months they owned the property when there was not a completed home there (hence what they told you about land value) so they paid you at closing for Jan 2006 thru Mar 2006. Come 2007 when the 1st installments were due, you do pay 10 months of taxes when the value of the property is assessed at full value of the completed home.
Hope this helps!
S. answers from Chicago on July 14, 2007
You owe it, there are no tax breaks. However, you builder is responsible for their portion of the bill before you closed (Jan-March) which is just for the land value. You however can write off the full amount, even that which the builder paid for, on your income taxes.
S. answers from Chicago on July 13, 2007
Do you live in Churchill club. I do and they told me the same thing. Come to find out that taxes are more than doubled. I pay $9,000 a year in taxes and you know taxes never go down. Pretty soon taxes will be more than my mortgage.
Welcome to Oswego.
S.M. answers from Chicago on July 13, 2007
Sorry for the tax bill shock...opening those bills is never fun! Tax bills are for the previous year so any bill you received last June 2006 was for land (for 2005). Since you resided in the home from March 2006 on, I would think you would owe for the services, schools, etc from March on. Maybe you could reach someone else at the assessor's office for a better explanation!! At least we get what we pay for out here...I have been here for 6 plus years and feel schools are great!