Counties (bordering Oklahoma) (Paris, Graham: real estate, house, income)

[debbie f]

It is to my understanding that Texans work in Texas yet reside in Oklahoma due to high property taxes.

Based on logic, I'm assuming there's a real estate boom in Oklahoma counties alongside Texas.

I'm curious if the high property taxes affect the rural areas in Texas.

[Trainwreck20]

I don't know what exemptions, etc. are available in Oklahoma, but I think they typical person pays about 5% state income tax, even if they work in Texas?

Also, most of the bordering counties are not known for their high values, so the overall tax would not be that high, even if the relative rate was. Ag exemptions for larger sections of land largely negate property taxes and aren't that hard to obtain.

Finally, although OK tax rates are lower, they are not non-existent.

Edit: From TurboTax...

Example One:

A full-year Oklahoma resident that earned income in both Texas and Oklahoma. She notices that TurboTax is including her Texas income on her Oklahoma return. Shouldn't the Texas income be excluded from her Oklahoma return because Texas doesn't collect income tax?

The answer is no. It is a widely-held belief that income earned in a non-income-tax-collecting state is exempt from taxation by the resident state. This is not true. In this case, our taxpayer's Texas income would be taxed as Oklahoma income because she is an Oklahoma resident and the Texas income was not already taxed.
Example Two:

Now let's say our Oklahoma resident moved to (or from) Texas during the tax year. Part of her yearly income came from Oklahoma sources and was earned during the time she was an Oklahoma resident. The remaining income came from Texas sources and was earned while she was a Texas resident. Can she exclude her untaxed Texas income from her Oklahoma return?

You bet. In this case, she would file an Oklahoma Part-Year Resident return for the Oklahoma income she earned while a resident of that state. The income she earned as a resident of Texas would remain untaxed because she earned it In Texas while she was a resident of Texas.

Edit 2:
I just went to the Lamar County tax appraisers site (http://esearch.lamarcad.org/) and looked up a 'typical' looking house in Paris, Texas ( 3530 Graham St., Paris, TX 75460)
1740 sf, built in 1991. Taxes, without any exemptions, would be about $2,075 per year. Homestead would pull it down a little. House is valued at $80,000, up from about $73,500 in 2007. The actual owner has HS and >65 exemptions, so they pay about $1,285 per year.

Now, if we were to 'convert' that property tax to an equivalent income at 5% income tax, that would be about the tax on $40,000/year in income. For the over 65 owner here, it would be equivalent to $25,700 in income, give or take. And that is not considering the property tax in OK. So, no, I don't think there is a likely boom in OK properties...

On a related note, if I lived in Tx and worked in OK, I guess I would get taxed by OK, even if I am not a resident?