Tax Question (Berea, Liberty: credit, property taxes, appraise)

[Firefighterdon]

Currently living in NE PA, my wife & I are considering retiring in possibly middle KY or near the TN border. I understand there is a state income tax and yearly registration tax on autos. Is there also a separate tax on other personal property such as stocks and bonds? Our taxes in this area are going out of site and we are looking for a less crowded atmosphere where the cost of living is not as bad. I've been looking at rural housing in the Liberty area and have found several interesting homes with acreage but the tax situation has us hesitant. Thanks for any input.

[Kichenwich]

http://startup.wsj.com/runbusiness/t...05-herman.html

Here's a link to an interesting article about taxes/deductions. I know we have a slightly higher tax rate than some areas, but it seems to level out when you consider the lower property costs. Here's a few more links that might help:

http://www.savewealth.com/taxforms/filing/ky/
http://revenue.ky.gov/
http://www.thinkkentucky.com/kyedc/pdfs/mptxinky.pdf
http://www.statetaxcentral.com/Kentucky/

Also remember that KY has many deductions, too. I would advise calling a tax professional (H&R Block, TaxWize, etc) and ask some specifics. I hope this helps, and we'd be glad to have ya in KY! ~joanna~

[Firefighterdon]

Thanks for the links. I'll check them out. We prefer central KY over TN as far as the area goes but I need to see what consequences all of the different taxes will have on retirees. Our area here in NE PA has become a suburb of NY/NJ and getting crowded for someone like me that grew up out in the sticks. We're hoping to get a nice home with some acreage so we can breathe again! We live in the fastest growing county in PA and as a result our school systems can't keep up and our taxes are going through the roof.

[kimmieyky]

You will absolutely find the 'sticks' again coming into KY - I am proud to say! And, moving to Central KY is the best place to find great land, great price and still be close to things you need everyday.

Curious - as my family is nothing but Firefighting and paramedics - are you volunteer or professional? That may play a part in where you land exactly, as the paid positions are hard to find the further out you get.
If you need help in that arena - let me know!

Kimmiey

[Firefighterdon]

Although I'm volunteer, we like to be referred to as "professionals" although some paid people don't see it that way. Anyway, I've been a firefighter for over 40 years total, 35 years with one department (now life member) and about 7 years with the department I am now once again active with. I held all line officer positions in my former dept., 11 years as chief. Now I'm just an active firefighter and am enjoying it. I'm one of the "old men" who is still active enough to do interior structural firefighting. Our department runs in the neighborhood of 400 - 500 calls per year as this area is really growing. I also ran with a volunteer ambulance squad for 10 years while I was with my old department. Gets in the blood if you know what I mean. I also notice your post about not forgetting 9/11. My old department was in the town of Portland, PA right on the Delaware River and about 1 mile from Route 80 leading to NYC. We were on stand-by for 3 days during 9/11 for a possible response to the city. Another story.

We definitely love KY but I'm not sure I'm sold on the vehicle license fee yet. We have nothing like that here but our property taxes are killing us. I still have to look into the situation a bit. We're heading back down in July, first stop Renfro Valley and then south.

Again, thanks for the info.

[kimmieyky]

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Although I'm volunteer, we like to be referred to as "professionals" although some paid people don't see it that way.

I know exactly what you mean! We have been fighting that fight for years around here. My ex-hubby is Chief, Dh is Lieutenant/Engineer/Trainig officer, Oldest son id FF. youngest jins next week on his 18th B-day, after being a junior since he was 15.

9/11 will alwys be in are hearts - we sent word and had a crew ready to go - as I am sure most of the country did. Yes, another story.

Property taxes, you will find, will not be as bad here as they are in other parts of the country. It is based generally on the price of your home - however, that is not always based on the selling/buying price. The farm we lived on - house w/10 acres and pond - stayed valued at 46,000.00 for years - even after they came through and re-evaluated after we purchased from dh's mom. It is based on square footage, bathrooms, etc. - but does not generally reflect the 'appraised vale'. Confusing, but still far less expensive than some states.

The vehicle tax come only once a year - or when you buy a new one. It is based on blue book value. You pay for tags, and taxes for say the Library, Schools, etc. It falls in your birth month.

And - we do have only a 6% sales tax - without tons of other fees and liscenses other states may have.

The best person on te board to talk to about moving from another state and adjusting to taxes would be suncoastman. He is moving up from Florida to the Berea area. He has been a wealth of info and has truly done his home work. Send him a pn - tell him Kimmiey sent ya - and you should be on your way.

Good luck on your search. Even though the taxes can be a bit confusing, I think yu will find KY is one of the cheaper staes around to live in.

Good luck - and thank you for your Firefighting years of service. You all deserve much more recognition than you get. Thanks so much for all you do and have done.

KimmieyKY

[Firefighterdon]

Thanks Kimmie. Right now it is between TN and KY and there are only a couple of areas of TN that we are considering, whereas KY has a lot more of the type of area we are looking for. Either will be cheaper in the long run compared to our area which is growing by leaps and bounds and none of it is for the best. There is a new 5,500 (yes that is the right number) housing development before our township supervisors right now for approval. I've lived here all my life and it was country when I grew up but not anymore.

It's also refreshing to talk to some about the fire service. We watch a lot of RFD TV on satellite and really like the advertisements supporting volunteers. As they say the fires are just as hot only we don't get paid. One interesting note I received from someone in KY stated they pay $40 per year for Medivac. We use a lot of Medivacs up here for accidents, etc. and they bill the insurance company. Our flight costs for about 20 minutes to the Trauma Center is $20,000. Oops, gotta go......looks like we may be "next due".

[suncoastman]

Originally Posted by kimmieyky

The vehicle tax come only once a year - or when you buy a new one. It is based on blue book value. You pay for tags, and taxes for say the Library, Schools, etc. It falls in your birth month.

And - we do have only a 6% sales tax - without tons of other fees and liscenses other states may have.

The best person on te board to talk to about moving from another state and adjusting to taxes would be suncoastman. He is moving up from Florida to the Berea area. He has been a wealth of info and has truly done his home work. Send him a pn - tell him Kimmiey sent ya - and you should be on your way.

Good luck on your search. Even though the taxes can be a bit confusing, I think yu will find KY is one of the cheaper staes around to live in.

KimmieyKY

Firefighterdon.....Here is a copy of what I found when I too, questioned the vehicle registration.

Well...I finally got my info straightened out re the first time I register my auto in Kentucky, that was purchased & used in another State. I quote....

"Tax Credit to New Residents of KY -

When offering a vehicle for registration for the first time in Kentucky which was registered in another state that levied a tax substantially identical to Motor Vehicle Usage Tax, a credit against the Usage tax equal to the amount of tax paid to the other state will be granted. No credit shall be given for taxes paid in another state if that state does not grant similar credit to substantially identical taxes paid in Kentucky.

Proof of Tax Paid can be provided by one of the following:

- Registration documentation from previous state.

- Title document from previous state can be used if the tax amount paid to the other state is clearly identified.

- Purchase Contracts can be used if the tax amount paid to the other state is clearly identified. The Purchase Contract must list the names of the buyer and seller, the amount of tax collected and paid, and the identity of the vehicle being registered. This form must accompany the completed TC 96-182. Finance Contracts are not accepted. "


Every State has their own way of taxing their residents, & to me KY taxes were somewhat confusing to me....but were actually cheaper overall, when I factored in my R.E. taxes, my house insurance, and the 6% sales tax is lower than my current one of 6.5% in Hernando County,FL. I moved here from Pinellas county (Clearwater area) & I believe it was 7 or 7 1/2%.

I will be saving over $1100.00 on my house insurance, & the property taxes will be almost the same, except I'm going from a 75' X 100' lot to that of 2 1/2 acres !

Good luck in whatever you decide to do.

God Bless.

JOE

[Firefighterdon]

Thanks Kimmieyky. Unfortunately (or fortunately) PA only levies a 6% sales tax on new autos and the registration is based upon the class, i.e. car, pickup truck, etc. Between our Explorer and F150 4x4 the yearly registration is just a bit over $100 so the added expense will probably about offset our property tax savings. Of course I believe the QUALITY of living will increase and that is the huge benefit. Right now I'm just trying to get some sort of budget set in place to ensure everything will work, and also trying to get appraisals for our current home.

Thanks again.

[Cattknap]

One thing that we found out in researching tax breaks for retirees in KY - the state gives you a $41,110 tax exclusion on pension income....pretty cool. This includes all pension incomes - even pensions derived from sources in other states.