[Normajo]

Why are Alabama sales taxes so outrageous?
Why is there no senior homestead property exemption? For instance, Mississippi has the first $60,000 value of a residential house free from property taxes, Louisiana has the first $75,000 free from property taxes.

[Twostep]

I cannot follow you. Are you talking about homestaed or outright purchase?

[Normajo]

Originally Posted by Twostep

I cannot follow you. Are you talking about homestaed or outright purchase?

Purchase has nothing to do with property taxes charged.
Senior citizens need a homestead property tax exemption & Alabama does not give them that.
As I wrote, the state of Louisiana gives the first $75,000 value of residential property belonging to seniors free from taxes, Mississippi gives the first $60,000 value of the property free from taxation.
The AL sales taxes are unbelievable.
In SC, in the county where I now live, we pay a 5% sales tax, we only pay $3% on food. The first $50,000 value of residential property for senior citizens is tax free.
Now, considering the rates that banks pay for savings, money market & CD's, the AL sales taxes are unGodly!
I don't see why AL citizens agree to pay such huge sales taxes!

[marysally]

I can only compare sales and property tax in Huntsville Al with Houston TX where I lived before I moved here. The sales tax rate in Huntsville is 8% whereas it was 8.25% in Houston. I believe that different cities and municipalities in AL set sales tax rates (in addition to the state sales tax rate). From what I understand I believe that ~8 % is not considered high -- in fact there are many places with higher rates. The major concern in AL is that food is taxed at the same rate. As far as property tax is concerned, the property tax rates in AL are so low that I don't think that most people see a need to give a break to seniors (and I am one!!). My house in AL is appraised for about $35K more than the house I had in Houston. It is also ~200 sqft larger. My taxes in 2006 on my house were $707. The last year I lived in Houston (1998) my property taxes were $3200. Given this information I don't see how anyone could consider AL taxes to be high!!

[Twostep]

I do disagree about the full tax on food. On the other hand homestead excemption brings property taxes down almost 50%. Considering that Germany now has 19% Alabama is not bad off.

[steveklein]

alabama does have high sales taxes. that being said, home prices and wages compare favorably to many states in the country, so our overall cost of living is below the national average.

i wouldn't try to get so caught up in certain aspects of taxes and instead just take into account the whole cost of living scene.

let's compare two areas... say... central florida and northern alabama. you might not have any taxes in florida... but when the same 2500sf home that costs you $475,000 in florida only costs you $250,000 in alabama...well... that's a lot of taxes that you will have to save before florida even comes close to alabama in terms of cost of living!

[jetjockey75]

Originally Posted by Normajo

Why are Alabama sales taxes so outrageous?
Why is there no senior homestead property exemption? For instance, Mississippi has the first $60,000 value of a residential house free from property taxes, Louisiana has the first $75,000 free from property taxes.

I wouldn't get all bent out of shape about it. According to MSN Money, Alabama ranks #50 (yes, dead last) in overall tax burden. Having lived in both AL and MS, I can guarantee you that, even though AL sales tax is 2-3% higher, income tax is lower in AL, and their property taxes are the lowest you will find anywhere. MS car tags for a new car can cost as much as property taxes!!!

[nalabama]

Alabama has high sales taxes (and applies them to medical and food) because that is the only tax that counties can increase without having to put the increase to a vote. IIRC, if a county wants to increase any other tax, they must get the approval of the entire Alabama legislature; one "no" by one individual legislator kills the whole deal and requires at least a local referendum and sometimes a statewide vote by the citizens.

Alabama does in fact have homestead exemption, it's just not a whole lot of $$$. Seniors get an additional exemption on their homestead as well, but--again--it's not a whole lot of $$$.

[Normajo]

Originally Posted by marysally

I can only compare sales and property tax in Huntsville Al with Houston TX where I lived before I moved here. The sales tax rate in Huntsville is 8% whereas it was 8.25% in Houston. I believe that different cities and municipalities in AL set sales tax rates (in addition to the state sales tax rate). From what I understand I believe that ~8 % is not considered high -- in fact there are many places with higher rates. The major concern in AL is that food is taxed at the same rate. As far as property tax is concerned, the property tax rates in AL are so low that I don't think that most people see a need to give a break to seniors (and I am one!!). My house in AL is appraised for about $35K more than the house I had in Houston. It is also ~200 sqft larger. My taxes in 2006 on my house were $707. The last year I lived in Houston (1998) my property taxes were $3200. Given this information I don't see how anyone could consider AL taxes to be high!!

A house I considered seriously about buying in Sylacauga would cost - city & county - almost $3,000 a year in property taxes.

[Normajo]

Originally Posted by steveklein

alabama does have high sales taxes. that being said, home prices and wages compare favorably to many states in the country, so our overall cost of living is below the national average.

i wouldn't try to get so caught up in certain aspects of taxes and instead just take into account the whole cost of living scene.

let's compare two areas... say... central florida and northern alabama. you might not have any taxes in florida... but when the same 2500sf home that costs you $475,000 in florida only costs you $250,000 in alabama...well... that's a lot of taxes that you will have to save before florida even comes close to alabama in terms of cost of living!

FL property taxes are unbelievable! I would not live there because of taxes first, the storms second, & the potable water third.
Greenwood, SC for now has a 5% sales tax, 3% tax on food, a $50,000 property tax exemption for seniors & some legislators are trying to up that amount or eliminate property taxes on residents altogether. After all, you can never own your house - which should be your castle - as long as you have an eternal mortage on it, as property taxes are.
We voted in a temporary 1% sales tax increase beginning in May to build a new $10,000,000 library & upgrade a dam.
I did not move to AL because of the enormous property taxes & sales taxes. Your utilities are all much higher too, so are your gasoline prices. If you don't believe me, just come here for a visit.
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