Leaving Kentucky due to state income tax issues (sorry, long) (Frankfort: for sale, vehicle registration)

[matalove]

Hi Everyone:

I am posting this because a) I'm very frustrated with the state, as I am sure others are as well, and b) because I want to make others aware so they can thoroughly check their bills so hopefully they aren't deceived by the state.

I moved to Kentucky in June 2006 from Indiana. When I filed in 2007 for '06, most of 2006 was spent living in Indiana, so I filed Indiana's state taxes.

In 2008, as I did my Kentucky taxes for 2007 and was floored by the amount I owed compared to what I had previously paid in Indiana in years past. I chalked it up to being a first-time home owner and having paid Indiana the year before. I didn't do my research.

After paying what I owed early (in February 2008), I received a bill for $330 for a "pre-payment penalty." I was upset and confused, so I called Frankfort, where the offices are located. I spoke with a rep who advised that this was a computer glitch and would be corrected. Alas, a few weeks later I received a 2nd bill. I called again and demanded a supervisor. I took her name down, and she promised to take care of everything, again citing a computer glitch, saying it was mailed in error. A 3rd bill soon arrived. I called again and spoke to rep, who was adamant that I owed the money. I asked to speak directly to the supervisor who I last spoke with. I admit I was harsh (rightly so, I feel) and she apologized. I finally did received a correction notice saying I owed $0...after my 3rd call.

I understand mistakes happen, so I didn't necessarily let it put a bad taste in my mouth.

Now comes the payment for 2008 taxes. In April 2009, we sent the state $750, which was the amount we could pay until we received the rest owed back from Indiana (we work there and most employers just pull for Indiana and then we get the refund). The check to Kentucky for the $750 cleared on 5/4/09. On May 18th, I received a bill (dated May 16th) for $2400 from Kentucky, which seemed a bit high, but I expected it and was waiting on my refund from Indiana so I could pay Kentucky what I owed them.

On June 2nd, I received my refund from Indiana. On June 4th, I called to verify how much I owed to Kentucky. I asked the rep if he received my payment of $750. He said yes. I asked him to verify that I owed $2400. He said yes. I verified that the $2400 was owed after the payment of $750 was applied. HE SAID NO! I asked for verification, and he said that he could correct the bill immediately and send me a new one. I asked what I owed, and he now said $1650. I asked why my payment wasn't automatically deducted from what I owed, especially since it cleared well before the bill was sent and they are telling me they have proof of payment. He said he didn't know, but could take care of it immediately. I was very upset.

After reviewing more in-depthly, I noticed they charged me interest based off the $2400. When I called to have that re-adjusted, a rude woman told me it had been fixed when they got the payment on April 15th. I have no idea what she was talking about and she refused to clarify.

My house is going up for sale Monday. I am not going to deal with this. I love the people of Kentucky, I love the scenery, and I love the hospitality, but I refuse to be treated this way. Indiana is right up the road, and their 3.4% rate is more appealing than Kentucky's 5.8% that I'm paying, as well as their competency in dealing with my taxes.

I hope everyone who does pay Kentucky checks their bills thoroughly and concisely. Don't let the state steal money from you.

Good luck and thanks for reading.

[tomocox]

Originally Posted by matalove

Hi Everyone:

I am posting this because a) I'm very frustrated with the state, as I am sure others are as well, and b) because I want to make others aware so they can thoroughly check their bills so hopefully they aren't deceived by the state.

I moved to Kentucky in June 2006 from Indiana. When I filed in 2007 for '06, most of 2006 was spent living in Indiana, so I filed Indiana's state taxes.

In 2008, as I did my Kentucky taxes for 2007 and was floored by the amount I owed compared to what I had previously paid in Indiana in years past. I chalked it up to being a first-time home owner and having paid Indiana the year before. I didn't do my research.

After paying what I owed early (in February 2008), I received a bill for $330 for a "pre-payment penalty." I was upset and confused, so I called Frankfort, where the offices are located. I spoke with a rep who advised that this was a computer glitch and would be corrected. Alas, a few weeks later I received a 2nd bill. I called again and demanded a supervisor. I took her name down, and she promised to take care of everything, again citing a computer glitch, saying it was mailed in error. A 3rd bill soon arrived. I called again and spoke to rep, who was adamant that I owed the money. I asked to speak directly to the supervisor who I last spoke with. I admit I was harsh (rightly so, I feel) and she apologized. I finally did received a correction notice saying I owed $0...after my 3rd call.

I understand mistakes happen, so I didn't necessarily let it put a bad taste in my mouth.

Now comes the payment for 2008 taxes. In April 2009, we sent the state $750, which was the amount we could pay until we received the rest owed back from Indiana (we work there and most employers just pull for Indiana and then we get the refund). The check to Kentucky for the $750 cleared on 5/4/09. On May 18th, I received a bill (dated May 16th) for $2400 from Kentucky, which seemed a bit high, but I expected it and was waiting on my refund from Indiana so I could pay Kentucky what I owed them.

On June 2nd, I received my refund from Indiana. On June 4th, I called to verify how much I owed to Kentucky. I asked the rep if he received my payment of $750. He said yes. I asked him to verify that I owed $2400. He said yes. I verified that the $2400 was owed after the payment of $750 was applied. HE SAID NO! I asked for verification, and he said that he could correct the bill immediately and send me a new one. I asked what I owed, and he now said $1650. I asked why my payment wasn't automatically deducted from what I owed, especially since it cleared well before the bill was sent and they are telling me they have proof of payment. He said he didn't know, but could take care of it immediately. I was very upset.

After reviewing more in-depthly, I noticed they charged me interest based off the $2400. When I called to have that re-adjusted, a rude woman told me it had been fixed when they got the payment on April 15th. I have no idea what she was talking about and she refused to clarify.

My house is going up for sale Monday. I am not going to deal with this. I love the people of Kentucky, I love the scenery, and I love the hospitality, but I refuse to be treated this way. Indiana is right up the road, and their 3.4% rate is more appealing than Kentucky's 5.8% that I'm paying, as well as their competency in dealing with my taxes.

I hope everyone who does pay Kentucky checks their bills thoroughly and concisely. Don't let the state steal money from you.

Good luck and thanks for reading.

You have every reason to be upset, and if I were in your shoes, I would likely leave too. Before you go, however, be careful. While Tennessee does not have a personal income tax, they have a huge sales tax. Living there could cost you more than you pay for Kentucky taxes. Many other states have similar back door taxes. Bottom line, a government requires so many dollars to waste and a few to operate and it doesn't matter which state you are in, they are gonna cost ya. Some states have high property taxes, others sales taxes (even allow cities to have separate sales taxes), many Kentucky cities and counties have occupational taxes that require you to pay 1-3% of your earnings above state and federal taxes.... just be careful out there.. somebody's gonna tax ya.

[The Dissenter]

Originally Posted by tomocox

You have every reason to be upset, and if I were in your shoes, I would likely leave too. Before you go, however, be careful. While Tennessee does not have a personal income tax, they have a huge sales tax. Living there could cost you more than you pay for Kentucky taxes. Many other states have similar back door taxes. Bottom line, a government requires so many dollars to waste and a few to operate and it doesn't matter which state you are in, they are gonna cost ya. Some states have high property taxes, others sales taxes (even allow cities to have separate sales taxes), many Kentucky cities and counties have occupational taxes that require you to pay 1-3% of your earnings above state and federal taxes.... just be careful out there.. somebody's gonna tax ya.

Yeah, you got that right. Statezilla will find a way to extort money for you any way.

In Virginia we have a car tax for every year and a tax on internet sales. If you live in Northern VA its worse. Just in my current city of Alexandria there is a tax on food, a decal tax in addiction to the car tax, and an car emissions inspection fee that other jurisdictions outside Northern VA dont require.

I'm somewhat at peace with Virginia taxes. I mean our K-12 schools are some of the best in the country, a low crime rate, a good police force, an excellent college system. At least my VA tax dollars are somewhat worth it.

Alexandria taxes i'm not happy with. Extra taxes and our school system is the lowest-scoring in Northern VA and vandalism is running rampant in my part of the city, the roads are very poorly maintained, and our city council refuses to do something with our shopping mall which has a location that has a whole mess of potential.

Taxes are guaranteed just try to relocate somewhere you'll get your money's worth.

[shilo0854]

I know how this can be. I rarely owe but one year I was hit. I have a friend who just made an appt. with them and that helped her. I also agree that states have there cost of living. I came from AZ paid vehicle registration of 4x, car insurance that was 3x of what it is here. Look at the whole state picture. Plus healthcare insurance costs (copays, drug costs, etc) can be a big difference as I have found. Also AZ you can't sell a house (you pretty much take a huge $$$$ loss on the value) KY has been pretty stable. Best of luck to you in whatever you do.