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Old 12-04-2008, 01:19 PM
 
Location: Florida
56 posts, read 211,243 times
Reputation: 53

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US News & World Reports came out with its list of the top 10 towns in the U.S. for being tax-friendly. It's a good list (see below), mostly in the west, and mostly in states that either don't have an income tax or a sales tax. Obviously that makes sense, but not perfect sense. Once we retire (that would be me) a state income tax isnt that much of a problem because we have to have income before we pay it (and even then, most state income tax %'s are small). State sales tax is less of an issue unless you have lots of money to spend and buy expensive items like cars. So to me the real tax-friendly issue for me is the property tax. Your friendly local tax assessor in the northeast could care less what your income is - it could be $0 or it could be $1MM, you still pay the same amount. So my long winded point, and i wonder if anyone else agrees, is - most people should concentrate on property taxes if choosing a tax friendly town is important to you.
The US News list:
Billings Montana
* Cheyenne, WY.
* Doral, FL
* Henderson NV
* Juneau, AK
* Manchester, NH
* Nashville, TN
* Sioux Falls SD
* Spokane WA
* Stafford, Texas

Last edited by somwhathip; 12-04-2008 at 01:31 PM.. Reason: fix broken links
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Old 12-04-2008, 01:34 PM
 
48,505 posts, read 96,483,446 times
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Well if you have no inconme then youm don't have t wrry about any tax really. You need to look at the overall txa reate really.But thehn i9n places where there are low taxes you really get few services and that can cost unless you think trash;garbage ;water;sewer and other services are not important.Many of the lowest taxed places look pretty bad many times.
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Old 12-04-2008, 02:43 PM
 
Location: The beautiful Rogue Valley, Oregon
7,785 posts, read 18,731,562 times
Reputation: 10782
It's an interesting list, except: I have no interest in living in any of those places.
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Old 12-04-2008, 03:16 PM
 
365 posts, read 1,248,791 times
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I tend to agree with you, because some states, such as IL and NY, have discounts for seniors when it comes to property taxes. And, depending on where you live, property taxes take a huge bite out of your bank account.

Also, just because a state doesn't have an income tax doesn't necessarily mean it's a cheaper place to live (TX and AK perhaps being the exceptions). States need money, and they find ways to get it from you: personal property tax on your car, sales tax, liquor and gas taxes, license plate (tag) fees, etc.

There are also differences on how states tax retirement and SS benefits. I've found this website to be helpful and to put it in perspective:

Taxes by State

FWIW, the only town from that list I'd be interested in is Manchester, NH, but I can't afford to buy a house there.
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Old 12-04-2008, 04:23 PM
 
Location: Iowa
14,283 posts, read 14,512,878 times
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I remember the Chicago Tribune publishing a list years ago that had Iowa and Wisconsin as 49 and 50 in terms of taxing seniors, taxing pensions, social security, etc. Illinois doesn't tax pension checks.

In the meantime I left Illinois and moved to Wisconsin. I decided the tax situation was a trade off because I got away from congestion, poor roads, scarey neighborhood (shootings), and Wisconsin has since changed some laws and no longer taxes social security. I don't pay tax on food, real estate tax is way less than Illinois. Utility prices, garbage, water/sewer way cheaper and so is gas for the car.

It really is a trade off in terms of what becomes important and how you want to live. Me, I wanted peace and quiet in a small town, nice neighborhood where I could walk to a park, the lakefront even at night if I wanted.
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Old 12-05-2008, 08:59 AM
 
Location: Forests of Maine
37,213 posts, read 60,926,856 times
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Default Taxes are very subjective

Many times when groups do studies like that, they seem to pull numbers out from some magic box, that just do not reflect reality.

Case in point; for decades studies have been showing that Maine has very 'high' taxes.

We moved to Maine after I retired, and we have been struck by the amazing low taxes.

I don't pay income taxes so I do not have a dog in that race. If I were still bringing in $80k, then I might earn a high enough income to qualify to pay income taxes. But I don't. I am on pension, I have an apartment building income stream, and my Dw works part time in a grocery. Between these three income sources I just do not earn a high enough income to qualify for income taxes here.

Around here each town sets it's own property tax mil rate, unless your in an unincorporated area then the state sets your mil rate. [A different mil rate for each county.]

The lowest county mil rate in Maine is Lincoln county with .00463.

In you bought a 100 acres of forest with a cabin on it, the assessed value for 'Treegrowth' would be set between $94 /acre and $135 /acre [depending on the type of trees]. So the assessed value of the acreage would likely about about $115 /acre [the average between the two]. 100 acres would be assessed at $11,500, and your annual taxes would be $53.25

If you drive cars that are 20 years old, your annual property taxes on those cars would be $15 /vehicle. [In Maine they call vehicle property taxes 'Excise taxes']

I am in Penobscot county which has a much higher mil rate [0.00852]. Nearly twice as high as Lincoln county's mil rate.

For 42 acres of forest with 1/4 mile of river frontage, we have been paying $47 each year.

So you see these studies are trying to define something that is really very subjective.

A cabin in the woods, with a bunch of older vehicles, and between income taxes and property taxes we pay less than $100 /year.

Sales taxes on only added to certain things. Not everything, so again it depends on what your buying.
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Old 12-05-2008, 09:25 AM
 
365 posts, read 1,248,791 times
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Quote:
Originally Posted by forest beekeeper View Post
Many times when groups do studies like that, they seem to pull numbers out from some magic box, that just do not reflect reality.

Case in point; for decades studies have been showing that Maine has very 'high' taxes.
...
Yes, you have to read these studies carefully and see how they're calculating rates, what they're throwing together, etc. Maine is consistently rated as one of the states with the highest tax "burden," meaning, not that the taxes are inordinately high, but that wages are below average, so the taxes that exist take out a higher chunk of a Mainer's salary than the same taxes would in a state with a higher average income. It can all be very confusing.

http://maine.gov/legis/ofpr/Tax%20Info/Tax%20Burden%20Report%20-%20March%202006.pdf (broken link)
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Old 12-05-2008, 10:33 AM
 
Location: Forests of Maine
37,213 posts, read 60,926,856 times
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Quote:
Originally Posted by CarolL View Post
Yes, you have to read these studies carefully and see how they're calculating rates, what they're throwing together, etc. Maine is consistently rated as one of the states with the highest tax "burden," meaning, not that the taxes are inordinately high, but that wages are below average, so the taxes that exist take out a higher chunk of a Mainer's salary than the same taxes would in a state with a higher average income. It can all be very confusing.
I agree.

In Maine, one small corner of the state is a huge metropolitan city [Portland]. It and the surrounding suburbs comprise the majority of the state's population. They demand a very high level of municipal services, and they pay for it all with their high taxes.

There is a 'band' along the coast of small towns, that are tourist focused. They that do not demand the same level of municipal services that Portland demands, but they still have a lot, and their taxes show it.

Over 52% of Maine is rural, with population densities below 10 people per square mile.

We live within 8 minutes from the freeway, and 20 minutes from Bangor. We have easy access to colleges, hospitals, international airports, and shopping. It 'feels' like we are very rural, but we still have access all things 'urban'.

Most of Maine has very low taxes. The overall tax burden numbers are slewed by Portland's urban area.

When you can by farm land for $300 /acre, or river front forest for $900 /acre; it does make for a nice area as a retiree. [and pay less than $100 /year in property taxes]

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Old 12-05-2008, 12:14 PM
 
Location: Vero Beach, Fl
2,976 posts, read 13,334,839 times
Reputation: 2265
I have to really question these "lists" - I swear there is payment involved. When I saw "Doral, FL" all I could think of is what??? - why Doral given all the cities in Florida. Makes no sense. Simply put, Florida is a tax free state (which also comes with a caveate).

I do not agree with this list.
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Old 12-05-2008, 12:20 PM
 
Location: Forests of Maine
37,213 posts, read 60,926,856 times
Reputation: 30081
Quote:
Originally Posted by jhlcomp View Post
... Simply put, Florida is a tax free state (which also comes with a caveate).

I do not agree with this list.
No income taxes?
no property taxes?
no vehicle registration taxes?
no hunting / fishing taxes?
no sales taxes?

Cool, I did not know that.
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