[RexLan]

Originally Posted by GreggT

Me neither and I've bought and sold a few houses in Alabama, but you know how some people are......

You mean like you and the other party that can't read or understand?


What I said was When a home is built every nickle is taxed at generally 9% and some places 10% right out of the gate. So the state has collected the first 15 years of "normal" taxes upfront!



I did not say when a home was bought or sold ... learn to read before you look foolish.


Building materials for a new home are 100% taxable - period. That adds a pile of $$ to the home cost which works out to roughly 15 years of up front tax when it is added back into the actual tax bill. Not a bargain at all.


But like you say .... you know how some people like you are .. lol You probably have never built a home ... just a buyer/seller.



Has nothing to do with income tax or capital gains ... not sure how anyone got that far afield.

[GreggT]

Originally Posted by RexLan

Building materials for a new home are 100% taxable - period. That adds a pile of $$ to the home cost which works out to roughly 15 years of up front tax when it is added back into the actual tax bill. Not a bargain at all.

As does almost ever other state in the US, nothing unusual here!

But like you say .... you know how some people like you are .. lol You probably have never built a home ... just a buyer/seller.

Built three, one in Alabama. Paid sales tax on material on all three.

Not sure what point you are trying to make?? In every survey taken, Alabama is one of the lowest taxed states in the nation and one of the cheapest to retire in.

[RexLan]

Only making one simple point as I originally said ... It is NOT what it appears to be and taxes in Alabama are no necessarily low.


I have built 5 new homes and Alabama is the only one that collected sales tax on building materials. ALL of the others (Alaska, Virginia and Florida) have a provision to get an exemption for the materials because their position was that the construction contributed to the tax base and they collected "new" taxes as a result. They were promoting new construction instead of penalizing it.



In contrast, Alabama gets the first 15 years of property tax up-front and then a reduced tax thereafter making it on-par overall with most other states, (CA, Jersey and NY excluded cause they are not normal in any sense of the term), not a bargain.


The surveys you refer only speak to current property taxes and neglects to factor the pre-paid tax. The tax burden to folks in Alabama is ranked:


The organization Tax Foundation released a report in 2018 that evaluated local taxes to determine which states were the most tax-friendly. This report showed that the states with the lowest taxes were - no Alabama mentioned which ranks 15th actually:

• Alaska
• South Dakota
• Wyoming
• Tennessee
• Texas
• Louisiana
• New Hampshire
• Nevada
• South Carolina
• Mississippi

Additionally, AL collecting sales tax on food and medical supplies is outrageous, so again, not so cheap in the overall.


I'm done with the conversation.

[Hoping4Huntsville]

My In-Laws advised us before moving here that it was practically free to live here in Alabama when, in truth, they were equating almost no yearly personal property taxes to being "free". Their point of reference being NoVA skewed things horribly. All of the other taxes are just ridiculous, especially since they occur and reoccur multiple times weekly, monthly, etc. The first year we lived here we were taxed on our prior year tax return amount from NC. What the hell is that?!? I had already paid taxes to the state of NC where the money was earned. Not to mention the old adage "You get what you pay for". In SE Alabama we aren't getting much of anything. A quick search online indicates there are at least eight states with lower individual tax burdens than Alabama but Alabama has a lower property tax burden than any other state (50th). We are 14th in sales and excise tax. Go figure.

[zerosoma]

Originally Posted by Ynot

Well, you can add eBay to the list of places that the good old greedy state of Alabama is now taxing! The state of Alabama has become a discouraging place to live in retirement. The added sales tax applies to items purchased from out of state, whereas it used to be only on items purchased from an Alabama resident. I'm sick and tired of Alabama reaching into everyone pockets as the state continues to be an embarrassment in every way possible! Your garage sales are next, count on it!

Before ya'll go out of your way to invite me to leave, rest assured, plans are in place and I can't wait to put Alabama in my rear view mirror. It USED to be a great state to retire in, but Alabama is coming in last or next to last in so many other areas. It's not just the greedy taxing either, Alabama has plenty of things wrong with it. So for those considering Alabama for retirement, consider yourselves forewarned, there are better choices than Alabama.

Dude I think most every state is now susceptible to eBay tax. I was alarmed too but NE and SD are doing it as well. If this was the final nail in the coffin I'm sorry, but if it was the first, maybe it's not so bad?

[OuttaFlorida2]

Originally Posted by RexLan

Only making one simple point as I originally said ... It is NOT what it appears to be and taxes in Alabama are no necessarily low.


I have built 5 new homes and Alabama is the only one that collected sales tax on building materials. ALL of the others (Alaska, Virginia and Florida) have a provision to get an exemption for the materials because their position was that the construction contributed to the tax base and they collected "new" taxes as a result. They were promoting new construction instead of penalizing it.



In contrast, Alabama gets the first 15 years of property tax up-front and then a reduced tax thereafter making it on-par overall with most other states, (CA, Jersey and NY excluded cause they are not normal in any sense of the term), not a bargain.


The surveys you refer only speak to current property taxes and neglects to factor the pre-paid tax. The tax burden to folks in Alabama is ranked:


The organization Tax Foundation released a report in 2018 that evaluated local taxes to determine which states were the most tax-friendly. This report showed that the states with the lowest taxes were - no Alabama mentioned which ranks 15th actually:

• Alaska
• South Dakota
• Wyoming
• Tennessee
• Texas
• Louisiana
• New Hampshire
• Nevada
• South Carolina
• Mississippi

Additionally, AL collecting sales tax on food and medical supplies is outrageous, so again, not so cheap in the overall.


I'm done with the conversation.

To clarify I thought Florida contractors get tax exempt from building materials when building non profit or building in certain rural areas? Also, as you have built homes in several states is the overall cost per sq/ft in Alabama to build a home less than say Florida? Wondering as we're hoping to move to Alabama soon from Florida.

I'm not gonna get in the which state pays less taxes but I pay $5000k a year on property taxes for a home I purchased for 300k 6 years ago. I pay $1500/year in tolls- however no grocery taxes in Florida is definitely nice.

[GreggT]

Originally Posted by OuttaFlorida2

To clarify I thought Florida contractors get tax exempt from building materials when building non profit or building in certain rural areas? Also, as you have built homes in several states is the overall cost per sq/ft in Alabama to build a home less than say Florida? Wondering as we're hoping to move to Alabama soon from Florida.

I'm not gonna get in the which state pays less taxes but I pay $5000k a year on property taxes for a home I purchased for 300k 6 years ago. I pay $1500/year in tolls- however no grocery taxes in Florida is definitely nice.

In Florida where we owned a second home, the building costs were between $150.00 to $160.00 a foot. Here in Delalb county, you are looking at $80.00 to $85.00 a foot in construction costs.

[AnsleyPark]

Originally Posted by OuttaFlorida2

To clarify I thought Florida contractors get tax exempt from building materials when building non profit or building in certain rural areas? Also, as you have built homes in several states is the overall cost per sq/ft in Alabama to build a home less than say Florida? Wondering as we're hoping to move to Alabama soon from Florida.

I'm not gonna get in the which state pays less taxes but I pay $5000k a year on property taxes for a home I purchased for 300k 6 years ago. I pay $1500/year in tolls- however no grocery taxes in Florida is definitely nice.

We live in Alabama, but directly on the Alabama-Florida line, so we have easy access to Florida grocery stores, which, as you pointed out, is a bonus! Our property taxes are about $2,500 per year on new construction. It is immensely more affordable than Atlanta, from where we moved. However, to build the home was on par with construction costs in Atlanta.

To where in 'Bama are you considering moving?

[GreggT]

Originally Posted by AnsleyPark

We live in Alabama, but directly on the Alabama-Florida line, so we have easy access to Florida grocery stores, which, as you pointed out, is a bonus! Our property taxes are about $2,500 per year on new construction. It is immensely more affordable than Atlanta, from where we moved. However, to build the home was on par with construction costs in Atlanta.

To where in 'Bama are you considering moving?

Are you able to claim a Homestead Exemption? $2,500.00 is extremely high for Alabama!

[AnsleyPark]

Originally Posted by GreggT

Are you able to claim a Homestead Exemption? $2,500.00 is extremely high for Alabama!

That's with the homestead exemption... Believe me, it's a blessing compared to what we were paying in the City of Atlanta.