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Old 04-17-2007, 01:38 PM
 
8 posts, read 49,087 times
Reputation: 19
Default Let's compare the high taxes in CT to low taxes in NC

I have been following this forum and read that a lot of people complains about high taxes in CT. NC seems to be popular since taxes are lower there or is it ?
It is true that CT has a higher property tax but NC has a higher income tax. It seems to be if you look at the overall picture, both states have pretty much the same tax burden for its residents. Letís run the numbers.

A couple with a combined adjusted gross income (AGI) of $100K pays $6,787.50 in NC state income tax.
A couple with a combined AGI of $100K pays $4800 in CT state income tax

A house worth $250K (2000sqft, assessed at $177K, so about %70 of todayís real value) pays $1975 in Wake County property taxes. It will go up in 2008 with the new assessment but letís ignore that for now

I searched for a comparable house in Shelton. It is going around $400K. Generally that $400K includes recent value appreciation so its value and assessed value is lower but letís go with the usual %70 assessment value of %70, so $280K. I took the following article as the reference:

http://shelton.ctlocalpolitics.net/ (broken link)

So, with the mill rate reduction of 17.59 from 24.31 (note that though the mill rate is going down, the tax is not, perhaps going slightly up, new mill rate is just taking the appreciation into account), property tax on that house is $4925.

So, grand income+property tax total :

NC : 6787 + 1975 = $8762
CT : 4800 + 4925 = $9725

So, one has to pay less than $1000 more in taxes in CT, that is about %1 of the AGI. This is pretty much inline with what I saw on this link:

http://money.cnn.com/pf/features/lis...005/index.html

CT is #12 with 10.50% and NC is #28 with %10. Yet the difference is only 0.5%.

Of course the calculation may change depending on different AGI, house value or different mill value. Though I noticed that higher the property values in a CT town, lower the mill rate is:

http://www.georgejsmith.com/mill_rates.html (broken link)

So, that is not big of a variable. Also, one is likely to have a higher AGI in CT than in NC, so likely to pay lesser income tax on that higher income.
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Old 04-17-2007, 01:57 PM
 
Location: Connecticut
14,153 posts, read 21,997,615 times
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In CT we pay taxes on your automobiles. Do they do that in NC?
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Old 04-17-2007, 02:09 PM
 
567 posts, read 1,488,768 times
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Oh yes!

And your boat, your dog, and whatever else you have.
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Old 04-17-2007, 02:12 PM
 
Location: connecticut
181 posts, read 15,526 times
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Quote:
Originally Posted by JayCT View Post
In CT we pay taxes on your automobiles. Do they do that in NC?
I've heard yes, I've heard no. Looking online right now it seems to be that yes you do pay taxes. However, I dont know if that is annually or a one-time at the time of purchase like every state would do.

Also not every household, in fact not a single person I know in my family or friends circle makes near 100k a year. Most that I know have at most a 50k a year combined income. For those types of people that then puts the income tax burden of NC at less of a factor, while increasing the inability to buy a house and/or pay the taxes on that house. I rent so technically the cheaper property taxes in NC arent a factor for me.

It is intersting to see, however, that in that income range, the overall tax burden levels out for both states.
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Old 04-17-2007, 02:13 PM
 
8 posts, read 49,087 times
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Quote:
Originally Posted by Erin1264 View Post
Oh yes!

And your boat, your dog, and whatever else you have.
Yes, there is a car tax in NC. I have a 97 Accord valued at $5110. I paid $61.30 last year. If I had a vehicle worth $26K, I'd have paid $300. Yes, the same applies if you had a boat etc.
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Old 04-17-2007, 02:21 PM
 
Location: Connecticut
14,153 posts, read 21,997,615 times
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We pay $350 for a 8 year old small SUV and $750 for a 4 year old SUV. We pay that every year. Jay
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Old 04-17-2007, 02:40 PM
 
Location: connecticut
181 posts, read 15,526 times
Reputation: 35
Quote:
Originally Posted by JayCT View Post
We pay $350 for a 8 year old small SUV and $750 for a 4 year old SUV. We pay that every year. Jay
Lol I paid 850 the first year that I had my evo. Everything about that car was expensive, but I miss it so much

I dont think people should base where they live based on money period. I think they should base it on what will make them happy, the need for a change, their personal needs, etc. I would even say IMO that weather should be more important than money determining where you live. If you're not happy with somewhere, having a few extra grand a year isnt going to make you happy. (YES this coming from the overly depressed suicidal kid haha ) I know the advice..sometimes I just dont follow it myself.
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Old 04-17-2007, 03:54 PM
 
1,219 posts, read 2,667,842 times
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According to the chart linked in the first post, Shelton's new mill rate will be among the lowest in Ct. Most are much higher, in fact, in using the rate from the middle-class town I live in, the taxes on the example house are nearer to $8000.

THAT'S part of why NC is looking good.
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Old 04-17-2007, 04:29 PM
 
Location: New England
8,156 posts, read 12,584,719 times
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Quote:
Originally Posted by wanderintonc View Post
According to the chart linked in the first post, Shelton's new mill rate will be among the lowest in Ct. Most are much higher, in fact, in using the rate from the middle-class town I live in, the taxes on the example house are nearer to $8000.

THAT'S part of why NC is looking good.

But it's what the valuation of the home is that really counts in the end.

Manchester has a high tax mill, but my home is so far under market value according to the town it's silly. I pay no where near 8K in taxes and I'm worth about 300K.

To the OP: Great work and excersize on the tax burden. I'm by far not saying we can't use a tax break in this state but your information is eye opening for sure.

KD83: A combined income of 50K means that each person is making 12.50 per hour. You can make that at Home Depot as a cashier. Anyone claiming life sucks but are happy with 12.50 per hour are not interested in doing something better for their lives...especially if they have a college degree. Even after a few years at one of the big machine insurance companies starting in the freakin mail room or customer service you can work your way to $35K a year somewhere inside the company which is 17.50 an hour. Heck a carpenter with 3-5 years experience can make $18 per hour in CT. (And about $11 per hour in NC). Just something to think about.
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Old 04-17-2007, 06:53 PM
 
567 posts, read 1,488,768 times
Reputation: 136
And don't forget the gas tax at the pump!!
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