Ky taxes? (Wilder: rental, houses, school)

[drinkthekoolaid]

Hi guys, I know some states have significant hidden taxes and fees. For example some states have annual private property taxes on things like vehicles.

How does KY get their money? What are some of the taxes that would be wise to be aware of before moving?

Property/school taxes seem very reasonable so I'm Sure they get their income elsewhere. Just want to know what to be looking for when I make comparisons.

[wrightflyer]

Watch out for vehicle property tax. Look into all that falls under the property tax. County Clerks offices tend to be the best source of that information and will know their county rate. I am sure there is a state website that houses the information as well.

As a rough estimate, my vehicle tax on a valued vehicle of $18K-$20K taxed at $250-$300. That was in 2021 on a 2019 Subaru. It is when you get into other registered vehicles (RVs, boats, trailers, side-by-sides, motorcycles, etc.) that it can certainly add up, especially if you have multiples of those.

Of course, as the vehicle depreciates, the taxable amount, and thus owed tax, goes down along with the lessened value.

[wrightflyer]

Another thing to be aware of is some jurisdictions (counties and towns/cities) levy a payroll tax AND Occupational Tax on employers (and thus their employees).

The tax only applies to where you work or are employed. It does not get levied on local residents or property owners. Rental income may need further examination if that qualifies for paying this tax on said income. I would consult a licensed CPA in Kentucky for that. The difference here with Ohio (and other income tax states) is Kentucky only taxes workers at their place of work. Ohio income tax applies to both residents and workers in that jurisdiction, though some Ohio locales have rate relief agreements between municipalities.

In Kentucky, both the Payroll Tax and Occupational Tax usually are capped at a certain level depending on the jurisdictions and rules. Payroll Tax is usually a roughly 2-3% rate with a max that varies by jurisdiction. Wilder is 2.25% with the cap being based on FICA rules. Others cap at a specified dollar amount. Campbell County maxes out $406 collected per employee. Occupational tax in Wilder is 0.075% maxed at $40,000 gross receipts and Campbell County maxes at $610, including a $25 license fee.

I think this was the most confusing part of moving to Kentucky. While Ohio rates are confusing in what you pay where and can be high (some local income taxes are 2-3% of total income - and if there is no relief, you could be paying 5 or even 6%), at least I knew I likely owed a certain percentage to my place of residence and my place of work. Kentucky is a little more confusing, especially if you work for an employer who does not have an office in the city/county and you work from home.

2022 Campbell County and Certain Campbell County Jurisdictions Occupational Tax Table