Why the taxes in NW Idaho are worth it (Dalton Gardens: rental, lawyers)

[MtnFlyer]

The real estate transfer tax is certainly something of interest. I actually wasn't aware of that one.

Esselcue, have you done any research to see at what income level it averages out? I suppose my mental hurdle to get past is that I can choose to pay less in property taxes by buying a lower priced property, but to choose to pay less in income taxes, I have to choose to make less.

As Elousv pointed out above, I suppose it's a break even at around $100K of income assuming the same piece of property, so I think the point being made by the post is that for people making that or less, it's actually more economical place, (as well as a better place) to live. I suppose it's when you start looking at the 2nd or 3rd hundred thousand dollars per year that you'd start looking at the cost. For each 100K in Idaho, you'd pay another $7800 to the state. In Colorado you'd pay an extra $4630 to the state. Montana would be $6900 and of course Washington would be $0. All that being said, I'm leaving a place that is $0. As I like to say, no one is willing to pay premium prices for 3rd balcony, row ZZZ, behind the state with an obstructed view.

I don't dispute for a moment that Idaho is worth the cost, and in fact the extra few dollars may be what is making the state worth more. My original question was more of, what are the things that make Idaho worth it to you to perhaps pay the extra money.

[IdahoEagle]

I didn't know anything about real estate transfer taxes until I took real estate licensing classes last month. We have quite a few people buying second homes here that are $750,000 + so in that price range the transfer tax would add up to more than a penny or two.

I think people choose to live where they are comfortable and being comfortable where you live is more important than money.

[esselcue]

MntFlyer, No, I did not...I was only looking at my own income level, which will be only about $35K...but I plan to have no mortgage or other large expenses so I should be okey-doke. In answer to your original post, however, I just felt very much "at home" in Idaho. It's beautiful, of course, but it was the people, the attitude I encountered everywhere. And it is a rather Libertarian state, which appeals to me. I think the older I get (I am 62) the less money/things means to me and the more the quality of life.

[MtnFlyer]

Originally Posted by IdahoEagle

I think people choose to live where they are comfortable and being comfortable where you live is more important than money.

Originally Posted by esselcue

I think the older I get (I am 62) the less money/things means to me and the more the quality of life.

The older I get the more I tend to agree with you both. I suppose I see it as a bit of dilemma as I've finally reached that point in my life where I have the ability to make real money, but at the same time it came along at a time that I decided quality of life means at least as much or more to me. If fact I work less than anyone I personally know, simply because my time is worth more to me than the income. I suppose that's why I try to be so careful about how much I give away in taxes.

Someone once said that 40 is the time in a man's life when he quits counting how many years he has been on this planet, and his attention is turned to how many years he has left. I suppose if that applies to me then it's just from a standpoint of wanting to make sure that whatever the future holds, my family is taken care of, and my children never have to worry about finances. Let's face it, in this day and age there are plenty of other things about which to spend your time worrying. That's the other reason I'm looking so hard at other places to live such as Idaho. I'm not just looking for a better place to live right now, I'm looking for what holds the best hopes of being still being a good place to live when my 10 year old daughter grows up and has children of her own.

Well thanks for your input, and for letting me talk this out a little bit.

BTW, if you don't mind my asking where in Idaho do each of you live?

[Baynative]

Originally Posted by MtnFlyer

what makes you choose to live in Idaho where the state income tax quickly reaches 7.8% of your income over the Washington side just a few miles away where there is no state income tax (B&O Tax excepted for self employed persons?)

I currently live in Washington and am working on my relocation to NID. I have just a few comments on the financial differences. Washington State is a junior version of the "other" Washington. The legislators here think that there is a bottomless well of taxpayer dollars.

I bought gas yesterday in Hayden for $1.89, today in Moses Lake it is $2.45. I suspect some of that difference is in Washington's gas tax which has increased 20 cents per gallon in the 6 years we've lived here.

The B&O tax is killing our small business. Additionally we pay $17,000 in L&I Insurance even though we have no employees and all the sub contractors we use are paying the same assessment.

We pay $3,377 annual property tax on a home assessed at $388,000.

Our sales tax is 8.75%.

We are shutting down our business and moving to Idaho where we will be "semi-retired" and personal income tax will not be a big part of the equation.

[Baynative]

Originally Posted by IdahoEagle

Idaho doesn't have a transfer tax on the sale of real estate. Washington has a 1.28% transfer tax. That is something to think about when you are choosing which state to buy property in also.

1.28% is the State imposed rate in Washington. There is also a county rate and in some incorporated areas, as city rate too. In the county we live in we will pay 1.78% to sell our home and move to Idaho in the spring.

[IdahoEagle]

I live in Dalton Gardens, which is between Coeur d'Alene and Hayden. All of the lots in Dalton Gardens are at least an acre so if you zoom over the Coeur d'Alene area using Google Earth it is where all the lots are big.

Washington state has a lot more road infrastructure to pay for than Idaho. I think that is one of the reasons they have more "Nickel & Dime" taxes than Idaho does.

[MtnFlyer]

IdahoEagle, Dalton Gardens looks very interesting. In fact I think I'll be taking a much closer look at that area. If it were just me, I'd be very content farther out, but I want my kids to be close enough to enjoy shopping with their friends, going to the movies, etc. Those big lots do look very nice, especially over on the east side.

I've also noticed a huge shift in demographics & welfare numbers once you cross the state line, much of which is in the way of illegal immigrants. I had originally thought that much of it was due to the taxes, but I've been told that's not directly the reason. A long time friend is the son of a former taxing official eastern Washington. I'm not sure what the title would be as things are handled so differently there, but down here it would be similar to the County Tax Assessor, so he certainly grew up around all of this. He has assured me that it has much more to do wth the fact that Washington's liberal viewpoint funds much more in the way of welfare programs etc. which is why you will see large demographic swings between a county as a whole, and a larger city in that county. Idaho seems to have much more of a, neighbors will go out of their way to help each other, but don't come here looking for a free ride on our dime attitude. Am I correct in my analysis of this? I personally have no problems with any given racial group, but I have a big problem with the collective group from all races that would rather milk the system and think they're entitled to a free ride on the dime of those who work for a living. Personally, I've never given anyone $1000 to get them back on their feet who the very next month didn't need another $1000.

[IdahoEagle]

Idaho has very few traditional "welfare" families. At some point the state decided that if you were going to live here you should work. They have great low income school lunch programs but I think the number of welfare families is less than 1,500. some cities in California have more than that.

I think Dalton Gardens is and will continue to be an oasis among the growth. We have neighbors with horses, donkeys and sheep. It is common to see tractors on the streets here. We finally sold our home on the north end of Dalton Gardens and will be moving to the south end which is about a mile and a half if you stretch it out.

There is a real estate sales "dead zone" in the Coeur d'Alene area where houses between $300,000 and $450,000 are not selling well. We had to drop ours below that to get it sold. But there are not that many empty lots left in Dalton Gardens. We are going to list one for sale fr $220,000. The new houses that are beeing built here start at about $750,000 and go up. so I think long term Dalton Gardens will have solid increases in value based on the lot sizes and the good elementary school/

[MtnFlyer]

Originally Posted by IdahoEagle

At some point the state decided that if you were going to live here you should work.

Amen to that!

It's also good to hear about the elementary school! Is Dalton Gardens in CdA's school district or do you have your own? Also, if you don't mind my asking, why did you move from one end to the other?