Finalizing a Budget (Boston, Sharon, Holden: section 8, sales, 2011)

[ajacques]

Ok, so now that I have things kind of narrowed down I need to make a buget; a couple budgets and do some city-comparing. The number 1 on my list right now is Sunderland, MA - The deerfield coridor-esq area.

In florida heat/electric are not seperate and we don't have gas so You really only have to budget for rent, electric & water. But I know mass is commonlty refered to as taxachussetts so are there any special things I need to budget for?

Rent - $700
Water - ?
Electric/heat/gas?? - ?
Car insurence is more expensive up north right?
Other?

[AandD]

I recently relocated from Austin to South Mass. I'm not sure how TX compares with FL, but I was really REALLY blown over by how much more pricey things were here.

My food bill went up 50%, from $400 a month to $600 a month. EVERYTHING is more expensive, not just produce.

You also pay a tax on the value of your car yearly, I believe - but mine's still registered in TX for right now, so I can't say with certainty.

I'm not sure where the town you mention is, but I've not seen any rents anywhere around me for $700 - even 1 bedrooms.

Good luck with the move. We've been very happy with our decision to relocate.

Editing to add: Childcare, if you have to access that, is hellishly expensive. If you smoke (blegh!) a lady in front of me bought a pack the other day and it was almost 9 bucks.

[ajacques]

$9 for a pack of smokes; omg. I don't some often, if I do its cloves wich is more expensive than the regular smokes.

So lets say I eat out ALOT - being a lawschool student - how much should I buget for 2 people for a month? Are there any farmers market? I would imaging that since theres farmland in wetern mass then there would reasonably priced produce.

Thankfully I don't have kids so no expenses there. I know there's a car tax - WTF? How do poeple live in mass. The more research I do the more expensive it becomes. ----- lets say I make $14p/h and my girlfriend makes $12 per hour - can we afford to even eat???

$14 is about the pay rate for the typical clerical position right? I currently make $13p/h her in orlando but I know I get paid better here than most in my field - Process of service.

[AandD]

I've said the same thing in previous posts. I'm not sure how people afford it. I was SO shocked to come up here making more than $40K per year and STILL qualifying for section 8 housing... LOL. I didn't apply since no one in Sharon takes section 8, but it was a big ego deflator to know I was that poor.

Eating out depends on where you want to eat. Fast food is comparable to Texas. Dunkin Donuts coffee is cheaper than Starbucks was. I don't eat out much since I have small kids - so for other eats someone else will have to chime in.

[holden125]

Originally Posted by ajacques

But I know mass is commonlty refered to as taxachussetts so are there any special things I need to budget for?

This Taxachussetts thing gets pretty old. That has been overblown since the 1970's. While the cost of living is high in Massachusetts, that is mostly market driven. There are a lot of high-income people living here. The total tax burden is actually ranked in the bottom half of states in the US by the Tax Foundation, which if anything is against higher taxation. You might as well go around saying Tax-iana, Tax-issippi, Tax-izona or Tax-oming.

People afford it either because they earn a lot, or because they think it's worth it and would rather have an 1,800 square foot house here than a 5,000 square foot house somewhere else.

If you have a modest or older car, the car tax is usually not that bad. The formula (found at CIS: Motor Vehicle Excise Information) under "Bill Computation" is to take the Manufacturer's Suggested Retail Price for the car and you pay $25 per $1,000 of value, but only on a percentage of that value based on the car's age.

So, if a Mass. resident bought a $20,000 2004 model car in 2004, she would pay tax on 90% of the value in the model year, 2004. That would be $25 x 18 ($18K is 90% of the car's MSRP) = $450. But in 2005 you only pay on 60% of the car's MSRP, so it goes down to $25 x 12 = $300. In 2006 it would be on 40% of the MSRP, so it's $25 x 8 = $200. In 2007 you'd be down to 25%, so it would be $25 x 5 = $125. In 2008 and every year after for the life of the car, the tax is based on 10% of the original MSRP, so it would be $25 x 2 = $50. Actual condition of the car does not matter; it's all based on the MSRP at the time the car was made.

Bottom line: if your car originally sold for under $20,000 and it's 4 years old or more, your vehicle tax will be under $50 a year.

[ajacques]

Originally Posted by holden125

This Taxachussetts thing gets pretty old. That has been overblown since the 1970's. While the cost of living is high in Massachusetts, that is mostly market driven. There are a lot of high-income people living here. The total tax burden is actually ranked in the bottom half of states in the US by the Tax Foundation, which if anything is against higher taxation. You might as well go around saying Tax-iana, Tax-issippi, Tax-izona or Tax-oming.

People afford it either because they earn a lot, or because they think it's worth it and would rather have an 1,800 square foot house here than a 5,000 square foot house somewhere else.

If you have a modest or older car, the car tax is usually not that bad. The formula (found at CIS: Motor Vehicle Excise Information) under "Bill Computation" is to take the Manufacturer's Suggested Retail Price for the car and you pay $25 per $1,000 of value, but only on a percentage of that value based on the car's age.

So, if a Mass. resident bought a $20,000 2004 model car in 2004, she would pay tax on 90% of the value in the model year, 2004. That would be $25 x 18 ($18K is 90% of the car's MSRP) = $450. But in 2005 you only pay on 60% of the car's MSRP, so it goes down to $25 x 12 = $300. In 2006 it would be on 40% of the MSRP, so it's $25 x 8 = $200. In 2007 you'd be down to 25%, so it would be $25 x 5 = $125. In 2008 and every year after for the life of the car, the tax is based on 10% of the original MSRP, so it would be $25 x 2 = $50. Actual condition of the car does not matter; it's all based on the MSRP at the time the car was made.

Bottom line: if your car originally sold for under $20,000 and it's 4 years old or more, your vehicle tax will be under $50 a year.

I apologize, I didn't mean any malice in my tax comment. I'm young i'm just trying to figure out this tax thing and it just seems a little overwhelming right now because i'm digesting alot of info. I make a little over 20k a year and am scared i'm getting to be taxed more becuase I barely make it as it is. However if you make over 200k a year than yes I tottally understand and agree with paying higher taxes. (thats a long discussion I didn't mean to get into)

But I have this car tax thing figured out. Thankfully mine's a 2yo ptcruiser; the list price is 1500 so when I move there next year it'll only be around $150 which I can handle.

[holden125]

Originally Posted by ajacques

I apologize, I didn't mean any malice in my tax comment. I'm young i'm just trying to figure out this tax thing and it just seems a little overwhelming right now because i'm digesting alot of info. I make a little over 20k a year and am scared i'm getting to be taxed more becuase I barely make it as it is. However if you make over 200k a year than yes I tottally understand and agree with paying higher taxes. (thats a long discussion I didn't mean to get into)

But I have this car tax thing figured out. Thankfully mine's a 2yo ptcruiser; the list price is 1500 so when I move there next year it'll only be around $150 which I can handle.

No problem, I don't mean to give you a hard time. There have been some heated exchanges on this topic of late.

This can be a hard place to make it on a lower income, so I am sympathetic. In some cases wages are higher for comparable work, but not always. You should be careful of heating costs. Whether oil or gas, the expense can be high in the winter. Happily, many people don't feel the need to use AC all that much in the summer and the summer bills are quite low.

If your car is a 2007 and the MSRP is $15,000, you're already down to $150, but that's for all of 2009. The tax is actually prorated if you didn't live in Mass. the whole year. You only pay for months you actually live (all or part of the month) in Mass. For example, if you move to Mass. any time in September 2009, you'd only owe car tax for Sept-Dec., or 1/3 of the year. Thus it would be something around $50 for 2009. Then in 2010 you're down to tax on 25% of the value, so that's down to about $95 for the whole year. In 2011 it would only be $37.50 since it's based on 10% of the MSRP.

The vehicle excise costs you more if your car is brand new and is expensive. If you get a $70,000 car, the tax will be almost $1600 in the model year. But if you can afford $70,000 for the car, you can pretty much survive the $1600 in tax. The way it's set up is in some ways a bad incentive scheme since it may promote keeping an old car that is less fuel efficient instead of getting a new one, but for most people who hold on to an old car, it's because they can afford another one, not because they can't afford the tax. People in New England also have a thrifty gene of sorts that makes them less likely to seek out shiny new baubles while the old ones still work fine, though in the immediate Boston area this instinct has lessened in the past 10-15 years.

[ajacques]

^ I understand and i'm sure after a while you feel like your going in circles defending your state. : ) Let me say not one of thoses taxes=bad kind of people (libertarians- they're like walking puzzles of illogicalness that i'll never figure out)

The car tax I can handle and it does seem fair. My car insurence won't raise so i'm ok there. The rent is going to be the biggest increase for me. Heat/gas for each month in the winter for a 1br sized place - is $200 safe to budget for or are we talking more than that?

[dognh]

Originally Posted by ajacques

I apologize, I didn't mean any malice in my tax comment. I'm young i'm just trying to figure out this tax thing and it just seems a little overwhelming right now because i'm digesting alot of info. I make a little over 20k a year and am scared i'm getting to be taxed more becuase I barely make it as it is. However if you make over 200k a year than yes I tottally understand and agree with paying higher taxes. (thats a long discussion I didn't mean to get into).

This is a good learning moment. If you make 20K a year, you won't be paying any taxes. But by taxes, often these politicians are referring to income tax. True if you make 20K you won't pay any income tax, BUT you will be hammered by all the other taxes and fees .

As you correctly pointed out - high fees, car registration, cigarette taxes, sales taxes, gas taxes -- hurt someone making 20K a lot more than it hurts someone making 200K.

[AandD]

Originally Posted by ajacques

^ I understand and i'm sure after a while you feel like your going in circles defending your state. : ) Let me say not one of thoses taxes=bad kind of people (libertarians- they're like walking puzzles of illogicalness that i'll never figure out)

The car tax I can handle and it does seem fair. My car insurence won't raise so i'm ok there. The rent is going to be the biggest increase for me. Heat/gas for each month in the winter for a 1br sized place - is $200 safe to budget for or are we talking more than that?

$200 is probably plenty, and you can affect your costs quite a bit by temp settings or choosing a place with upgraded insulation and windows.

one thing I have noticed, that Holden touched on, there is a *different* type of consumerism up here. More emphasis is placed on durability and functionality for the most part. I think those in the NE are just more thrifty by years of practice. I know *I've* gotten MUCH more thrift conscious since moving here. I had to in order to eat... LOL.