Government & Taxes

Year established - 1841
System of government - council-manager
Number of council members - 7 - divided by wards
City annual budget - $69,480,279

The City of Rock Island is a council-manager form of local government. The mayor and city council establish policy direction for the city, approve the city budget, and decide on taxing levels to fund municipal services. They appoint a full-time city manager who has responsibility to oversee city operations and make recommendations to the City Council.

Home Values

A small sample of homes was recently compared from Rock Island, Illinois and Davenport and Bettendorf, Iowa.

Similar homes were priced from $163,000 to $249,000.

Iowa average sales price - $104 per square foot
Rock Island average sales price - $84 per square foot

Sale prices for homes in Rock Island are 25% less than in Iowa.

Conclusion: You get more house for the money in Rock Island.

Property Taxes

Considering you get more house for the money. Let's compare property taxes on similar valued homes.

Rock Island, IL	$100,000 home	$150,000 home	$200,000 home
average rate	9.0988	9.0988	9.0988
property tax	$3,033	$4,549	$6,066

Davenport, IA	$125,000 home	$187,500 home	$250,000 home
average rate	4.3879	4.3879	4.3879
property tax	$1,828	$2,742	$3,657

Difference	$1,205	$1,807	$2,409

Income Tax

Finally, income taxes need to be taken into account as Illinois and Iowa have very different income tax systems.

Illinois	$75,000 income	$150,000 income	$250,000 income
Iowa total federal & state tax	$11,210	$32,684	$71,530
Illinois total federal & state tax	$9,155	$28,566	$60,611

Difference	$2,055	$4,118	$10,919

Conclusion: For most people, property taxes and income taxes tend to cancel each other out. Property taxes may be higher in Illinois, however income taxes are higher for most people in Iowa.

While in depth study may indicate there is no tax incentive to live on one side of the river for most people, most homebuyers don't get into that level of detail. Payroll deduction of income taxes removes the sticker shock of that annual property tax bill. The tax impact of one state versus another requires a case-by-case analysis by a knowledgeable tax advisor.

Conclusion: Each individual is different. Before you buy a home, take a look at the entire picture to see what is most beneficial for you.

Click here for additional information on taxes can be found on the Quad City Development Group's web site.

Data collected by RE/MAX realtor Jerry Wolking - five similar properties from each side of the river were compared. In a study conducted for Ruhl & Ruhl, RSM McGladery recently analyzed typical state income taxes paid by households in both states.