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Old 07-18-2014, 07:54 AM
 
78 posts, read 95,513 times
Reputation: 42

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Hello!

I have posted here a few times in the past and finally got here (Sagamore Hills where I live and Solon where i work). As I was filling out my new hire paperwork I remembered that there are local and school district taxes you pay. Did some research on it but I'm not really sure how it works.

Just to get this straight on the taxes that I will be paying in Cleveland

Ridiculously high property taxes for a house, school district taxes, taxes in the city I work in, taxes in the city I live in, state income tax, and then of course sales tax.

I'm coming from California where they love to tax everything yet I had no idea there were so many taxes here. I was comparing some homes in San Diego, where I'm from, and their property taxes were MUCH lower than here even though it was valued more. Here is the San Diego House 5473 New Mills Rd, San Diego, CA 92115 is For Sale - Zillow and here is the Shaker Heights one 16000 Shaker Blvd, Shaker Heights, OH 44120 is For Sale - Zillow . I know Shaker Heights has the highest property taxes in the state but it was just one example to get a house comparable to San Diego's prices. Anyways, it just shocks me that the property taxes are so high here and yet there are still so many other taxes. It seems that in Texas there is no income tax and they offset with higher property taxes (same as Cleveland's tax rate) but here there are is income tax in addition to property tax.

I guess I should have expected all these since it is publicly available knowledge but I never thought to look. I was wondering how you guys, who have lived here for longer than me, justify paying all these taxes.

Thanks!
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Old 07-18-2014, 08:39 AM
 
Location: Youngstown, Oh.
5,509 posts, read 9,490,296 times
Reputation: 5621
Usually, school district taxes are taken from the property taxes. Rarely, a school district will have an additional/separate income tax.

Also, property taxes aren't high everywhere. While I'm at the other extreme end of the spectrum, my property taxes are about $200-250 per year.

Finally, cities will often have reciprocity agreements (I think that's what it's called) where you don't pay the full sum of the 2 cities' income taxes. Say the city where you live has a 1% income tax, and the city where you work has a 2%. Often, you will only have to pay the 2%, and the city where you live takes their 1% from that. But, it doesn't always work that way, so check with each municipality.
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Old 07-18-2014, 09:47 AM
 
Location: Arizona
8,270 posts, read 8,650,554 times
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Taxes are low in Ohio.

Sales in Ohio is 5.75% In California it is 8.25%

Gas tax+fees in Ohio is 28 cents in California it is 48.7.

Income in Ohio is 5.92% on $208,000. In California it is 9.3% on $50,000.

Compare taxes on comparable homes not comparable prices. The Shaker house would be how much in San Diego?

School taxes are almost always included on your property taxes.
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Old 07-18-2014, 12:57 PM
 
389 posts, read 916,616 times
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Yes, the school district taxes are already accounted for in the property tax in Ohio. I do not believe that is the case in California.
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Old 07-18-2014, 02:32 PM
 
78 posts, read 95,513 times
Reputation: 42
Yes the prices are lower in homes but the principal is that you are paying much more in taxes than you would in San Diego. Once I retire, I am not making as much income yet paying more taxes, even if my cheap home is paid off. Don't get me wrong: I love it here but it just surprised me to see all these taxes.

Good to know about the school taxes and property taxes! I rent right now so I don't have any property taxes quite yet.
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Old 07-18-2014, 03:44 PM
 
Location: Youngstown, Oh.
5,509 posts, read 9,490,296 times
Reputation: 5621
Quote:
Originally Posted by mortey View Post
Yes the prices are lower in homes but the principal is that you are paying much more in taxes than you would in San Diego. Once I retire, I am not making as much income yet paying more taxes, even if my cheap home is paid off. Don't get me wrong: I love it here but it just surprised me to see all these taxes.

Good to know about the school taxes and property taxes! I rent right now so I don't have any property taxes quite yet.
Sure you do! They're just included in the rent, and paid by your landlord.
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Old 07-18-2014, 04:45 PM
 
78 posts, read 95,513 times
Reputation: 42
Maybe that's why renting in this city is so expensive!
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Old 07-18-2014, 06:45 PM
 
Location: Arizona
8,270 posts, read 8,650,554 times
Reputation: 27675
Quote:
Originally Posted by mortey View Post
Yes the prices are lower in homes but the principal is that you are paying much more in taxes than you would in San Diego. Once I retire, I am not making as much income yet paying more taxes, even if my cheap home is paid off. Don't get me wrong: I love it here but it just surprised me to see all these taxes.

Good to know about the school taxes and property taxes! I rent right now so I don't have any property taxes quite yet.
You are not paying more. If you have a 3000sq. ft. house in Shaker vs. 3000 sq ft house in SD you are paying much more in SD. More in taxes and more for the house. You already saw how much you get for the money in Ohio. That SD house you showed was an $80,000 to $120,000 house in Ohio.

You still don't get it. If you have identical houses, drive the same miles, spend the same in goods, and have the same income your taxes are substantially less in Ohio than in California. There is no comparison!
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Old 07-18-2014, 07:16 PM
 
78 posts, read 95,513 times
Reputation: 42
Oh I don't question AT ALL that home prices are MUCH cheaper here in Cleveland than they are in San Diego. I was just saying that the property taxes are quite a bit more and that in addition to that there are other taxes. There's no doubt that Cleveland is cheaper. That's why I moved!
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Old 07-19-2014, 12:56 AM
 
Location: Cleveland
493 posts, read 639,626 times
Reputation: 104
Move to Solon. The reason the taxes are so low in Solon is because almost half of Solon is manufacturing and industry, which is the main reason for lower taxes.

In Cleveland Heights where there are no factories, so the taxes are high. They also rely on their restaurants and bars and entertainment (The best options in Cleveland), and if that fails, then Cleveland Heights will be in a big crisis.
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