Sunday, December 09, 2018

Illinois and Westchester County's Credit Downgrade

Illinois Democrats may think they "control things" now but they're going to have to contend with the impact of caps on the State and Local Taxes deduction.  SALT may well explain loss of Congressional seats but now local towns are going feel the heat from property tax bills.

From Bloomberg on Westchester County's downgrade,
The average property-tax bill in the county last year was $17,179, the highest in the the U.S., according to a report by Attom Data Solutions. The federal tax law changes set a $10,000 limit on deductions for state and local levies and capped the mortgage-interest deduction to loans of $750,000.

There are some signs that high property taxes and the federal shift are having an impact.
The median price of single family homes in the county dipped to $675,000 in the third-quarter of 2018, a 3.6 percent decline from the previous quarter, according to an October 11 report by Miller Samuel Inc. and and Douglas Elliman Real Estate. Luxury homes prices fell even more, with a 6.4 percent decline to $2.1 million.

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