Real Estate Taxes (Sun City, Surprise: sales, renters, HOA fees)

[Jammie]

We were just browsing through interesting areas of the country yesterday and discovered that the real estate taxes in the Sun Cities/Surprise area are astronomically low. Has it always been this way and how does your state government make up for the tax since it isn't placed on houses/condos? We have a friend who's in-laws live in Az. and it sounds like license plates are high there, but there must be some other things that are exceptionally high to make up for that deficit. Is that correct?

Also, what are the normal Association Fees charged in communities in those areas? AND homeowner's insurance~ since you have no catastrophic weather~what are your insurance rates?

[MotleyCrew]

Sun City has lower taxes but I thought Surprise had one of the highest sales tax.

[Jammie]

Originally Posted by MotleyCrew

Sun City has lower taxes but I thought Surprise had one of the highest sales tax.

What is the sales tax in that area? Do you have the same tax on food as other items?

[Nice Nice Baby!]

Tourism is getting to be a bigger industry and jobs growth add to the tax base.

[JasonS]

Surprise is 8.5%
Sun City is 6.3%

I think food is exempt from tax but i could be wrong

[Nice Nice Baby!]

Food is exempt, but not restaurant service.

[pynkpanther]

Originally Posted by Nice Nice Baby!

Food is exempt, but not restaurant service.

...and that's some HEFTY tax!

[Bummer]

Originally Posted by Jammie

We were just browsing through interesting areas of the country yesterday and discovered that the real estate taxes in the Sun Cities/Surprise area are astronomically low. Has it always been this way and how does your state government make up for the tax since it isn't placed on houses/condos? We have a friend who's in-laws live in Az. and it sounds like license plates are high there, but there must be some other things that are exceptionally high to make up for that deficit. Is that correct?

Also, what are the normal Association Fees charged in communities in those areas? AND homeowner's insurance~ since you have no catastrophic weather~what are your insurance rates?

Good questions, Jammie

I cannot speak for the entire country since I relocated here from California about ten years ago, however, I feel the tax situation in Arizona is a "piece of cake" by comparison. That includes Vehicle Licenses, Real Estate Taxes as well as Sales Taxes.

As for HOA Fees . . . they vary greatly mainly due directly to the services or benefits offered. Some HOAs cover water and trash pick up while others do not. Some HOAs actually include the building insurance so the homeowner only needs to have "interior" insurance similar to a renters insurance policy. Some HOAs include exterior maintenance while other do not.

Bottom line . . . tough to compare unless all of the details are on the table.

I hope this makes a little sense out of a fairly complicated question.

[MotleyCrew]

We have food tax...I think it is 1.something percent. Looking for Costco receipt to verify. Yep, 1.8% on food. Not on prepared items, but on groceries.

[Jammie]

Well, I've got to tell you that 6.3% isn't really that high of a tax. Our tax is 7% since we have a bit of city tax on there. Our food is taxes at 4%, I believe. But our tax rate is a bit over $21 per 1,000.

I read some place that the Sun Cities don't pay any school taxes which could explain a bit of the low cost, but it still surprises me that this is possible.

And yes, I understand totally what you're saying about the HOA fees different. I never thought about that.

So could anyone tell me how much it costs to license a car down there? I've heard it's astronomical, but after reading Bummer's post, I'm starting to wonder about that.