The real cost of Building in Newton Illinois Five Aprils Subdivision or
anywhere else in Newton Illinois.
Thinking of getting a "free" building lot from the city of Newton? Just remember If something sounds to good to be true it is
because it is to good to be true.
The City of Newton Illinois has been trying to give away or sell for pennies on the dollar (22) 1/2 acre lots to anyone who will
take them, strings are attached.
After 10 years or so of trying it appears that they have found 8 people willing to pay thousands and thousands of dollars in
the future to save a trivial amount now, its just like buying the cheapest ink jet printer available and then realize that
replacement ink costs more than the printer except this will be much harder to get out of than throwing a printer in the junk.
The reason that the city wants to give the lots away is not that they all of a sudden feel charitable, the reason is the same as
always, its all about the money. Because the lots are in a TIF district and the city will collect the entire amount of the property
tax for the new house (other taxing bodies get nothing) until the TIF expires and the clock is ticking. So they give you a lot
and once you build on it the city collects around $4,000 per house per year X length of the TIF or 23 years.
And now for the real reason why you really do not want to build a house here is that Newton Illinois has the very highest
property taxes anywhere in the area, you would have to go north of Bloomington IL to find anywhere else in Illinois as high,
as a matter of fact if anyone can tell me where there is a city in Illinois that has a higher city property tax rate please let me
know, I have looked and looked and have found none.
house value tax rate yearly tax bill 1 year savings 10 year savings 30 year savings
Newton in Town $130,000.00 10.772450 $4,021.71
Jasper County outside city $130,000.00 8.474730 $3,163.90 -$857.82 -$8,578.15 -$25,734.46
Effingham in City $130,000.00 7.326400 $2,735.19 -$1,286.53 -$12,865.25 -$38,595.76
Dieterich in Village $130,000.00 7.620000 $2,844.80 -$1,176.91 -$11,769.15 -$35,307.44
Effingham County outside city $130,000.00 5.330000 $1,989.87 -$2,031.85 -$20,318.48 -$60,955.44
Now for some math, if you borrowed 80% or $104,000 on a $130,000 house for 30 years with 4.5% interest
you would have a payment of around $527.00. if you were to build the same house in the correct part of Effingham
county you would save $2031 dollars per year or $169.00 per month. If you were to add that $169.00
property tax savings to your mortgage payment your 30 year loan is now a 19 year loan and you would save over
$35,000 in interest payments, you also would save* $60,000.00 in property taxes over 30 years for a total of
$95,000*. Or you could have a much more expensive house for the same monthly total.
Additionally The city of Newton has utility rates that are double what other area cities charge and have additional
hidden taxes in them.
*this assumes that everything stays the same for 30 years which it of course will not.
There is no indication that Newton will do anything other than continue to squeeze every dollar possible out of
residents in the future as they have in the past so the savings for going elsewhere will no doubt increase over time.
Local Property Tax Comparison