Spoken by a NH-ite (Montpelier, Norwich: sales, real estate, apartments)

jipsee · 10-07-2006, 05:28 AM

Even though I live in VT but work in NH, I have to pay VT state income tax on my wages. Does anyone else think this is rather unfair? It should at least be reduced. I guess maybe so many people work across the state line that their VT tax revenues would be decreased significantly.

I knew all about the tax scenario here before I moved. I still think that state income tax is ridiculous. As if paying the federal amount wasn't enough. I'll be handing over a quarter of my income. Do I get any of the state tax back in the spring?

I know, I know...if I don't like it I should move back to NH....

Mark S. · 10-07-2006, 03:25 PM

As frustrating as it is, your situation isn't all that unusual. Here in Washingtston State, we have no state income tax. Oregon does have a state income tax, but no sales tax. So a lot of people (especially retirees) live in Vancouver, WA, which is right on the border with Oregon, and do most of their shopping in Oregon.

Even in New England, I know lots of folks who work in Massachusetts but live in New Hampshire.

I am curious though: What made you choose VT as a residence? Was real estate more affordable? Is that part of the area just nicer in VT? Do tell.

sevdie · 10-07-2006, 05:37 PM

I just can't imagine not having to pay state or income tax! I have been paying it for as long as I have been working...and I have been working most of my life! I guess it will be a refreshing change if I move to NH.

jipsee · 10-08-2006, 04:50 PM

The flip side is, I can scoot over to NH to do my shopping and pay no sales tax. I was just hoping that someone would say, "hey, you don't have to pay state income tax....here's a way out..." LOL. Right!

I knew I wanted to be near the Hanover area, as I would likely be working there. I looked at many apartments around Hanover and Lyme, and south as far as Plainfield, and they were averaging $800-$1000, which is too much money for me. Someone in a local housing office advised me to try towns on the other side of the river, as I might get more for my money. I did find, in general, that rents were a bit less expensive, with the exception of Norwich, VT. I am a 15 minute drive from Hanover now, but so far it works fine for me.
I'm living in the country, but a short drive to shopping, the college and all associated activities. So, truthfully, I didn't pick VT first, but ended up here as a compromise. I have always loved driving through the state and now I have all these beautiful areas close by. Just today I went for a foliage drive on the back roads around Lyme, NH and spent a very nice afternoon doing so.

There is a certain "something" that makes VT special. But the entire Upper Valley as a whole, including NH and VT as they both border the river, is beautiful. There are special areas on both sides of the river that offer their own unique vistas and scenery.
Even though I live in VT now, I consider myself more generally an Upper Valley resident.

Sevdie: Yes, it will be a refreshing change to move to NH! You will be pleasantly surprised to pay the exact amounts of clothing, etc.

Dwatted Wabbit · 10-31-2006, 10:32 PM

Generally speaking, if that's possible considering that each town has its own tax rate, does the high property tax and lack of state income and sales tax in NH make up for the income, property, and sales tax in Vermont? As a general rule, on which side will you pay higher taxes?
I'm a NH native but looking at VT and NH when we return to the east in a year or two.

abavt · 11-14-2006, 11:54 AM

I've seen comparisons that indicate,overall, the costs of living in NH are about the same, perhaps slightly higher. They cant run the state on air, so they get it in different ways.

Shopping in NH as a Vermonter...Look out - Vt Tax Dept is tracking purchases made in NH by Vt-ers. I recently got nailed for a purchase I made 3 years ago. i fought the law, but the law won, of course. Tho' I refused to pay, it was deducted from money owed me by the state. I knew they would get it one way or another, but I still feel VERY STRONGLY that it is an ILLEGAL tax. NH does not have a sales tax - that's where I purchased the item, so why a tax to VT?? Dictatorial, and right up there with the Feds saying that we can't purchase RXs from Canada if we want to.

arel · 11-14-2006, 04:14 PM

Vermont taxing purchases in New Hampshire????? I never heard of such a thing. In New York, where there are high sales taxes and a state income tax, people often go to New Jersey to shop for some items, and avoid a sales tax. By the way, we also have property taxes and they have gone up drastically in the past few years, probably 100% or so, but I don't think they are as high as some other places. And I don't have to pay property tax on my car, as they do in Rhode Island.

Maybe Vermont taxes purchases to make up for the fact that Vermonters can go to New Hampshire and buy, thereby depriving local merchants of their business. Or maybe they just do it to make up for lost tax revenue.

How can they track your shopping, anyway, unless stuff is mailed to you and the stores send the Vermont government your address? Or is there surveillance of credit card purchases? Is there a Big Brother in Montpelier?

abavt · 11-14-2006, 05:21 PM

It is true! The Vt tax dept is going to NH border stores and going thru those stores' sales records, for the past 3 years in my case, and I know that I am not the only one who got "caught." I dont know why it is allowed or why the NH stores have to comply. What's going on here?? It surely does feel a little "Big Brother-ish." And maybe a privacy violation? The tax dept told me that they certainly are not red-tagging folks along the border but I don't believe it for a minute. When I asked about all the Vt purchases at the Walmarts and Home Depots, I was essentially told to mind my own business and not ask, so something is up there. Maybe there are going to be sales tax toll booths along the VT/NH border. "Anything to declare....?"

nhyrnut · 11-14-2006, 08:19 PM

Quote:

Originally Posted by abavt

It is true! The Vt tax dept is going to NH border stores and going thru those stores' sales records, for the past 3 years in my case, and I know that I am not the only one who got "caught." I dont know why it is allowed or why the NH stores have to comply. What's going on here?? It surely does feel a little "Big Brother-ish." And maybe a privacy violation? The tax dept told me that they certainly are not red-tagging folks along the border but I don't believe it for a minute. When I asked about all the Vt purchases at the Walmarts and Home Depots, I was essentially told to mind my own business and not ask, so something is up there. Maybe there are going to be sales tax toll booths along the VT/NH border. "Anything to declare....?"

Hello you fools put all the Dems in charge over there. This law was passed by DEAN many years ago. SURPRISE!!!!!! You VOTE for Dems you get TAX AND SPEND Dems. All you tree huggers dug your grave now lie in it. Next Election try voting for like 50% rep and 50% Dem. thats how it works. both parties work together. You put just 1 party in charge for as many years as you did and you have problems. Now you have a Rep gov make your house or senate Rep controled as well but leave the other. As for your wining Tell the tree huggers to smartin up and vote responsibly.

Check123 · 11-15-2006, 05:29 AM

If you try to minimize or avoid sales tax by purchasing goods in a state that is different than your state of residence then you should have to pay any difference.

Same concept applies to purchases over the internet. If you buy something and pay no sales tax then you have to report it when you file your taxes.