State Income Tax (Seattle, Pacific, Index: sales, real estate, 2010)

[tylersminerals]

I read that there is no state income tax in Washington. Just need clarification, is this true ? If so, just curious as to why? I think thats fantastic considering Cali's state taxes are insane now.

Amy

[Ira500]

Washington has no state income tax. Why? Because it would be very politically unpopular. we have a high sales tax, 10% in the city of Seattle. We have a high gas tax. We have a real estate excise tax on the sale of property, but any office holder who proposes an income tax, even if this tax were advisable and fair, would never advance past the office they currently hold, and might get booted out of office.
Our neighbor to the south, Oregon, has an income tax but no sales tax.

[tylersminerals]

Thanks Ira500! That is very interesting. The politicians actually listen to the people of the state and go by what the people want, WOW, Wahsington just gets better and better lol. Our politicians charge us for Miley Cyrus tickets and limos for there teenage children. I vote but it never seems to help.

Our sales tax jumped up this year in Los Angeles to 10% and our gas taxes are pretty high as well (not sure of the percentage), we have some of the highest gas prices in hte country because of our tough emissions laws and taxes. Now our vehicle registration has jumped up. I got my registration the other day and it is almost $200.00 more than it was last year. My property taxes are going up even though my property value has gone down, go figure. Any suggestions on booting politicians, we need to get Arnold (and a few others) outta here lol. I can honestly say "I didnt vote for him" lol! Anyway thanks again have a good one!

[scirocco22]

Amy, in addition to Washington, eight other states also do not have state income tax:

Alaska, Florida, Nevada, South Dakota, Texas, and Wyoming ...with New Hampshire and Tennessee taxing only income earned through interest and dividends.

However, don't let not having a state income tax fool you. Actually, the total tax burden as a percentage of income comparing Washington with California are similar.

[pw72]

Originally Posted by scirocco22

Amy, in addition to Washington, eight other states also do not have state income tax:

Alaska, Florida, Nevada, South Dakota, Texas, and Wyoming ...with New Hampshire and Tennessee taxing only income earned through interest and dividends.

However, don't let not having a state income tax fool you. Actually, the total tax burden as a percentage of income comparing Washington with California are similar.

Perhaps, but only if you own property, and tend to make a lot of big-ticket purchases. If you are young, renting, and/or don't make those purchases, you come out ahead in WA.

[scirocco22]

Originally Posted by pw72

Perhaps, but only if you own property, and tend to make a lot of big-ticket purchases. If you are young, renting, and/or don't make those purchases, you come out ahead in WA.

You're right. I was going by my research when selecting a state to retire several years ago. At that time, from what I recall, Washington was actually ranked higher (13) compared with California (15).

[AzDreamer]

Usually Washington State rates pretty well in how heavily it taxes people compared to other states. Below is an article rating WA 9th best for it's Business Tax Climate. CA is a dismal 48th.

"The Tax Foundation has published its 2010 State Business Tax Climate Index, which ranks the fifty states according to five indices: corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax. Here are the ten states with the best and worst business tax climates:"

TaxProf Blog: 2010 State Business Tax Climate Index

[tylersminerals]

Scirocco22,
I knew about Nevada, but I did not know about the other states. Very interesting thank you.

AzDreamer,
the TaxProf Blog is really interesting thanks. You would think a huge state like Cali with all the money they have here, we would not be as broke as we are and they would have a way to give back to the people rather than continually take from them.

Anyway thanks everybody for the info, its a great help and I appreciate it.

Amy

[StealthRabbit]

Originally Posted by tylersminerals

Scirocco22,
I knew about Nevada, but I did not know about the other states. Very interesting thank you.

... You would think a huge state like Cali with all the money they have here, we would not be as broke as we are and they would have a way to give back to the people rather than continually take from them.
...

What are you looking for in a move? WA has lots of variety of climate and activities, but there may be other choices that suit you better. The danger of WA is that it (and OR are on the path to be just like CA (Over-regulated and restrictive for economic growth). Some states such as Colo have an overall tax burden that is more favorable.

CA really lost a great opportunity for wealth retention, when they let the huge property valuation increases flee to other states (Thus ruining 'affordable' property ownership in most western states). If they would have required all equity EXCEPT the 'national mean housing cost' to remain invested in CA, they would have saved the occupants of the rest of the other states, HUGE property tax burdens (which are not as big of a problem in CA (Prop 13)). Unfortunately this has resulted in local residents (sometimes for may generations) to have to relinquish their properties and move. Very typical in WY, CO, MT. Too bad for all...

I think the TaxprofBlog is missing some significant business expenses that are HIGH in WA (Personal property Tax, Use Tax, B&O, Insurance rates ...)

[tylersminerals]

Hi StealthRabbit, To be honest the main reason for my interest in moving up north is due to health. I have an illlness that requires I move to a climate that is much cooler than the one I am in now. I have little to no heat tolerance, anything over 85 degrees and I am in extreme pain and very ill. WA has alot of the climeate factors I need ti live a good quality of life. Alot of people say oh you wont like it because of the small town thing, no night life, bla bla bla. Well I live in northern LA county now in a small farming community. I love it, I dont do the night life thing very often and if I want to go out I am just as happy going to dinner and a movie with my hubby. Or we take a road trip to Laughlin NV. A very very small gaming town on the Colorado River (even my vacations seem to be in small towns). I am drawn to the small town at atmosphere. I love the senseof community and I love knowing my neighbors, I love going any place in town and running into people I know. So for me its not so much the political reasons that I would pick a place to go. It's the enviroment. Tax info and such is importent to know though and so I have to ask, it probably wouldn't sway me one way or another though. I have lived in LA since I was 9 and there are many things I love about it, mostley the frendships that I have developed over the years and the Pacific Ocean. But I was born in Indiana which makes me very fond of nature and forrests, rivers wildlife, etc.. Moving back to Indy is not an option for me. The humidity is off the charts and it is too flat lol. I have always had a fondness for Washington. My grandfather had taken me there as a child and I real a very strong connection to it.

As far as CAli goes, it really is a big fat mess. We cant afford enough police, we are laying people off in droves, yet the city of Los Angeles felt it nessicary to pay for Michael Jacksons Memorial. I mean people really have there priorities screwed up. we had one member of government buy Myley Cyrus tix, rent a limo for her daughter and friends and take the train from Sac to LA and then handed the bill to the state, as if it were a biz trip. These types of things infuriate me, yet no matter what we do, no matter how many votes are cast, it never seems to make too much difference. Every single promise made by the Govenator has been broken and dont getme started on our kids education. There are just infinate problems here, yet they are not the reason I want to leave lol. I have to or I will end up spending the majority of my life indoors and I am only 35 so that is really not an option. I want to be outdoors, sitting on a lake or at the beach or on a mountainside in the snow, rain or sun. AS long as its 80 or less I will be happy.

You know whats really sad too. All those people that have lost there homes are now looking for homeless shelters that are closing because there is no money to keep them open. Venice had to pass an ordinence banning RV's from the neighborhoods because so many people are now living full time in their's. Where I live there is one homeless shelter and it is only open in the winter, now it may not open at all this winter. Alot of families living in the street. It really is heartbreaking.