Taxes too high in Arkansas compared to Florida? (Conway, Reyno: property taxes, house)

[flresbytor]

I am considering moving to northern Arkansas from southwest Florida. We have relatives in Arkansas, visit often, and like the area. When running the numbers, I'm beginning to think I am better off in Florida due to 4 things, income tax, personal property taxes, utility costs (electric and phone is high in Arkansas I hear), and homestead exemption.

Let me give you a hypothetical and see if anyone can tell me if I am wrong, assuming an equal income in both states, for discussion purposes, and in my case, it would be accurate.

Assumptions: Married, 3 kids, current value of personal property of cars, boat, furniture, clothes, just regular household personal possessions might total $40,000. Current sales tax in my county in Florida is 6.5%. Potential house in Arkansas purchase price around $300k, cash, no mortgage. Utilities in Florida currently consist monthly of electric $300, cable 75, phone 50, internet 50. I'm guessing we buy goods that have some form of sales tax as food, clothing, gas, general goods of about $2000 monthly.

Arkansas does not have a total homestead exemption as Florida does, correct? This means no matter the cost or value of your home, they can't come get it from you if you go bankrupt, for example.

Here is my hypotheticals:

FLORIDA (yearly)
Household yearly income before taxes - $90,000
property taxes on home - $4200
homeowners insurance - $3800
Home Owners Association fees - $2400
Auto registration for 2 cars total - $90
Utilities - $5700
state income tax - 0
personal property tax - 0

Total taxes and utilities living in Florida, not including sales tax $16,190


ARKANSAS (yearly)
Household yearly income before taxes - $90,000
property taxes on home - $1000
homeowners insurance - $1000
Home Owners Association fees - 200
Auto registration for 2 cars total - ??
Utilities - ??
state income tax - ??
personal property tax - ??

Total taxes and utilities living in Arkansas, not including sales tax $ ??


Can anyone in the know fill in the blanks fairly accurately given the info provided? I'd like to know if I'm correct, or if am missing something.

Thanks!

[Angelrocks]

Yes, living in Florida does have it's benefits. After 3 yrs. and so many months, if a person declares bankruptcy, you can still keep your house even if it's a million dollar house (assuming you own it or can still make all the payments). Why do you think OJ and Burt Reynolds moved down here? I would suggest talking to a lawyer though. Don't know if they are allowed to put a lien on the house. I personally don't think so, but I am not a lawyer.

I have a good friend whose husband ran up huge credit card debt. She couldn't pay it back so she just declared bankruptcy. She divorced her husband, and after so many years sold her townhome and moved into a beautiful home. Nobody put a lien on her home. Can't take your home in Florida!

Only Texas, Iowa, Florida & Kansas has full homestead protection. I think that's it, but I may have left out a state?? Mass. has up to $500,000k protection.

http://www.assetprotectionbook.com/arkansas.htm
Try that link ^^^^^^

As far as taxes goes in Arkansas, I have no idea!

[JohnN]

My house in arkansas is about $300K,
homeowners insurance and property taxes run $300 each, plus property tax (vehicles) of a couple hundred, there is a homestead exemption for a few bucks savings

we have an income tax that tops at 7%,
I'm moving to Florida!!!

[JohnN]

utilities, $250 per month average , higher in summer and winter (3000 foot home) and lower in spring/fall

your numbers look pretty close

[easyasabc]

Angelrocks,

I think you missed the bigger part of his question, but I will make a rebuttal to your wrong comment on Burt Reynolds. My sister and her husband live in Stuart, Florida, and have lived there for 30 years. One of her friends went to high school with Burt Reynolds down there in south Florida.

Burt Reynolds did not just move down there for a haven for bankruptcy. He moved to Florida in the late 1940s with his family when he was a young kid, went through school there, then college at Florida State Univ, and has owned many homes there for years, and still owns a home there today as far as I know.

To imply that he moved there to be protected for that state's homestead protections, is just not true in any way shape or form. I believe he was born in Michigan, and moved to Florida, like I said over 60 years ago, which to most people down there, makes him a true Floridian.

To Flresbytor,

You made me think. I never thought about it the way you mapped it out, but you are right to a point, and I'd like to run the real numbers. I'll ask my tax guy in Conway about your question, but the state income tax will add some dollars to your hypothetical, just not sure how much. I know there are people here who can figure that out in a jiffy.

The personal property is not that big of a deal, but it all adds up, and you may right that your overall expenditures on those items listed, may come out to be very close in total.

[mlrfo4]

I have a 2800 sq ft home, married and 4 boys. Our average electric bill is roughly $150 a month. Car insurance is a little higher, obviously depends on your type of car and driving record. You do get a $300 homestead credit on your property tax as long as you lived in the home on January 1st and it's your primary residence. Personal property tax is not much. It's nothing here compared to California !

Originally Posted by flresbytor

I am considering moving to northern Arkansas from southwest Florida. We have relatives in Arkansas, visit often, and like the area. When running the numbers, I'm beginning to think I am better off in Florida due to 4 things, income tax, personal property taxes, utility costs (electric and phone is high in Arkansas I hear), and homestead exemption.

Let me give you a hypothetical and see if anyone can tell me if I am wrong, assuming an equal income in both states, for discussion purposes, and in my case, it would be accurate.

Assumptions: Married, 3 kids, current value of personal property of cars, boat, furniture, clothes, just regular household personal possessions might total $40,000. Current sales tax in my county in Florida is 6.5%. Potential house in Arkansas purchase price around $300k, cash, no mortgage. Utilities in Florida currently consist monthly of electric $300, cable 75, phone 50, internet 50. I'm guessing we buy goods that have some form of sales tax as food, clothing, gas, general goods of about $2000 monthly.

Arkansas does not have a total homestead exemption as Florida does, correct? This means no matter the cost or value of your home, they can't come get it from you if you go bankrupt, for example.

Here is my hypotheticals:

FLORIDA (yearly)
Household yearly income before taxes - $90,000
property taxes on home - $4200
homeowners insurance - $3800
Home Owners Association fees - $2400
Auto registration for 2 cars total - $90
Utilities - $5700
state income tax - 0
personal property tax - 0

Total taxes and utilities living in Florida, not including sales tax $16,190


ARKANSAS (yearly)
Household yearly income before taxes - $90,000
property taxes on home - $1000
homeowners insurance - $1000
Home Owners Association fees - 200
Auto registration for 2 cars total - ??
Utilities - ??
state income tax - ??
personal property tax - ??

Total taxes and utilities living in Arkansas, not including sales tax $ ??


Can anyone in the know fill in the blanks fairly accurately given the info provided? I'd like to know if I'm correct, or if am missing something.

Thanks!

[terryt]

so what is the answer.I would like to know what the differece is.What are the taxes in Ark. and what is taxable?

[mlrfo4]

Take a look here

www.arkansas.gov/dfa/ - 23k

[Visitor2007]

flresbytor, what do you do for a living? How can you assume that you can get the same high paying job in Arkansas?

[flresbytor]

Hi everyone,

Thank you for your responses. I still haven't been able to calculate it correctly. Is there anyone who can fill in the following blanks??

Auto registration for 2 cars total - ??
Utilities - ??
state income tax - ??
personal property tax - ??

I appreciate any help.

To Visitor2007, as to what I do for a living, that is private, but I can tell you my income will be the same as Florida. I have a business that is virtual and can be run from anywhere, physical location does not matter. Household income of 90k is not a "high paying job" as you say. Try living off $90,000 with a family of 5 in Florida or any other higher cost state. It does not go far.

That is why we are thinking about northern Arkansas, but I'm not so sure when it is all said and done, that I would be saving a ton of money. I believe my income will be over 100k in 2007, but we'll see. I will say this, if I do move there, I may consider buying another existing retail business there if the numbers work and I feel that I can come in and turn it around and make it much more profitable.

Thanks again.