What's up with Columbus area taxes?? (Upper Arlington, Worthington: sales, 2013, insurance)

[danagoose]

We're considering a relocation to Columbus. One of the main positives for us when the idea was first floated was the lower cost of living (vs. Denver). Since then, I've noticed 1) property more/less everywhere around Columbus are really high, and 2) there are additional income taxes levied by cities.

First, does anyone know if these taxes are factored into the publicly available cost of living comparisons, or should I discount the "better" cost of living for the higher taxes?

Second, does anyone know which muni's collect income taxes and at what rate? So far, all I know is that New Albany collects 2%.

Bonus question: which school district provides the best return on taxes collected: Upper Arlington, Olentangy, Worthington, New Albany?

[packer43064]

Unfortunately Ohio let's the city you live AND the city you work at tax you also. You usually get a credit, but not always and it might not cover it all. Then there is the school taxes even if you don't have a child or your a 95 year old man. If where you live the school district has a levy you will pay for that too. Along with the 6.75-7% tax on everything you buy....except food. Food as in groceries aren't taxed.

That's just life in Ohio!

I believe most muni's or cities to make it easier will collect a tax based on how much you make. Thus the double tax if you work in another city than where you live.

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[danagoose]

Originally Posted by packer43064

Unfortunately Ohio let's the city you live AND the city you work at tax you also. You usually get a credit, but not always and it might not cover it all. Then there is the school taxes even if you don't have a child or your a 95 year old man. If where you live the school district has a levy you will pay for that too. Along with the 6.75-7% tax on everything you buy....except food. Food as in groceries aren't taxed.

That's just life in Ohio!

I believe most muni's or cities to make it easier will collect a tax based on how much you make. Thus the double tax if you work in another city than where you live.

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Thanks for the prompt response packer! Do you (or anyone else) have an explanation for where the higher taxes go? I admit the education piece is nice, especially the smaller class sizes. But I'm not sure that should justify a roughly 40-50% higher property tax than here, let alone the muni income tax on top. Are the additional gov't services provided that aren't typical in other areas...?

[Bodycount]

It's because the state stop paying for the schools... so the school districts put more levies out there to help recoup the money they lost from the state.

Also the state lowered the amount to libraries as well forcing a lot of libraries to push out local levies to help make up the loss in money.

Just wait though. If Columbus Schools gets this new 9.5 mill levy passed in November (which I hope they won't), then everyone in Columbus will be paying a lot more.

[streetcreed]

Not to scare you away, but a recent H&R block study (using an average income of 50,000) looked at the total tax rate a citizen would pay across all US cities. of medium/large cities columbus is # 3 for the highest.

Many here feel they get a great return on their taxes though. The city includes many services and many suburbs also provide high return. The city has been doing great economically so it doesn't seem to be having a negative affect.

Lower cost of living yes but maybe higher taxes than where you currently live.

[bam989863]

A year ago my wife and I moved from Houston, Texas to Columbus, Ohio and we were concerned about the tax issues as well but over time we learned it is essentially a push. We paid over 10k in property taxes in Texas and the same priced house here in Upper Arlington is half of that. In Texas our insurance rates for driving and our home were significantly higher than what we pay in Ohio. The schools are much better here in central Ohio than they were in Texas. The class sizes are much smaller and the focus on higher order thinking skills and the development of advanced skills in unmatched in most Texas public schools. My wife and I are getting ready to buy a home in a nice school district, the price for the home is the same as the home we owned in Texas. With all the taxes and insurance wrapped into the payment, we are paying 600 dollars less a month than we did in Texas and we are in a superior school district than what we were in Texas.

You don't have to pay taxes for the place you live and work unless the place you live has a high rate, then you just have to pay the difference to the place you live.

[packer43064]

Originally Posted by streetcreed

Not to scare you away, but a recent H&R block study (using an average income of 50,000) looked at the total tax rate a citizen would pay across all US cities. of medium/large cities columbus is # 3 for the highest.

Many here feel they get a great return on their taxes though. The city includes many services and many suburbs also provide high return. The city has been doing great economically so it doesn't seem to be having a negative affect.

Lower cost of living yes but maybe higher taxes than where you currently live.

I will agree I think Ohio or Columbus if we want to be specific is doing great economically. If the "Work and Employment" subforum is any indication of how the U.S. is doing Ohio is miles ahead from other states. I don't know about higher paying jobs, but your Average Joe jobs $10-20$ are everywhere. I don't have the skills yet at least to have a $20+ an hour job, but if I lost my warehouse job tommorow I wouldn't be devastated, just annoyed I have to dress up for interviews because I know within a couple of weeks I will be working again.

Also OP once you're here you get used to it. You make sure if you work out of your city it has a tac credit. You factor in sales tax of almost 7% on big purchases. If you don't have kids, then possible try not to move where a school district tax is being issued.

I might not like all of the different taxes Ohio has to offer, but I don't think it is a hindrance. I haven't had to all the police department or the fire department, but they seem to work quickly and effectively. That is all subjectively though.

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[packer43064]

Originally Posted by bam989863

A year ago my wife and I moved from Houston, Texas to Columbus, Ohio and we were concerned about the tax issues as well but over time we learned it is essentially a push. We paid over 10k in property taxes in Texas and the same priced house here in Upper Arlington is half of that. In Texas our insurance rates for driving and our home were significantly higher than what we pay in Ohio. The schools are much better here in central Ohio than they were in Texas. The class sizes are much smaller and the focus on higher order thinking skills and the development of advanced skills in unmatched in most Texas public schools. My wife and I are getting ready to buy a home in a nice school district, the price for the home is the same as the home we owned in Texas. With all the taxes and insurance wrapped into the payment, we are paying 600 dollars less a month than we did in Texas and we are in a superior school district than what we were in Texas.

You don't have to pay taxes for the place you live and work unless the place you live has a high rate, then you just have to pay the difference to the place you live.

You pay whatever taxes where you live and work. If you live in Columbus (2.5%), but work in Pickerington which is say 2% and the tax credit of Pickerington is .5% (which it is) you still owe 1.5% to Pickerington along with the Columbus tax. Just something to remember when you move here and trying to plan finances.

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[jbcmh81]

People seem to be overblowing taxes here just a bit. Whether or not certain municipal tax rates are higher (which ARE factored into cost of living calculations), the overall cost of living anywhere in Ohio, including Columbus is low compared to the national scene. Certainly, every COL listing/calculation I've seen has Columbus much less expensive than Denver, so it doesn't really make sense to me to focus on one of the few costs that might be a bit higher.

Also, Columbus has been praised nationally for its tax system and financial stability. Not that long ago, the public voted to increase the local income tax to keep development going and to keep public services like police/fire/rec centers going during the recent recession. One of the results was that the city maintained one of the best credit ratings of any city its size, continued public infrastructure projects like the Scioto Mile and Columbus Commons, is rebuilding/renovating every rec center and most of its libraries, expanding the CMOA, had been having record years of street resurfacing, seen crime levels drop, etc. People think taxes are inherently bad, but if used correctly, they can do some good.

Here's a recent article from Colorado Springs talking about this very thing: http://csbj.com/2013/01/03/columbus-...ity-lost-here/

In any case, you can look up local tax rates in Ohio here: https://thefinder.tax.ohio.gov/Strea...municipal.aspx

[jbcmh81]

Originally Posted by streetcreed

Not to scare you away, but a recent H&R block study (using an average income of 50,000) looked at the total tax rate a citizen would pay across all US cities. of medium/large cities columbus is # 3 for the highest.

Many here feel they get a great return on their taxes though. The city includes many services and many suburbs also provide high return. The city has been doing great economically so it doesn't seem to be having a negative affect.

Lower cost of living yes but maybe higher taxes than where you currently live.

That last sentence is really what's important. It's going to be cheaper to live in Columbus than Denver, period.