AZ Costs of living? (Phoenix, Tucson: sales, apartments, rent)

[ReconJohn]

We plan on retiring to AZ later this year. We've done some research on anticipated costs--mortgage interest rates, gas $, RE taxes. However, we haven't yet found info on sales taxes on consumables, ie: food by type, taxes on pension income, SS, Military pension, etc. Although we will make our home in AZ, my bean-counter wife would like to plan our expenses as best as possible.
Any factual help would be greatly appreciated

[borregokid]

Food isnt taxed and either is SS. There is an income tax on pensions. If you really want to escape taxes move into one of the approximately 16 age restricted communities like Sun City where they pay no school taxes. I live in a non-age restricted community that is almost entirely retirees and we pay school taxes. If I was in Sun City my taxes would be about $800 less per year. If your wife is a real bean counter she might be interested in one of the Sun Cities. Not all of the age restricted communities are exempt from school taxes so you will have to look close. Some of the communities are gated and then if grandchildren come to visit you have to deal with rules. As an example kids like to swim in pools but an age restricted community might only allow kids for two hours a day.

[Ponderosa]

Figure 9-10% sales tax on everything - 2% on food though some of the cities exempt food. The one that puts a dagger in the hearts of most newbies, though, is vehicle registration. It can run about 500 bucks a year for a new car and several thousand for a motorhome.

[Jimrob1]

There is a lot of sales tax in this state. It seems to be broken up into state, county city, or something like that. I believe it is 2nd only to Tennessee the highest sales taxed state. I have paid sales tax on groceries in parts of the Metro Phoenix. I think it was Phoenix itself. Not all communities tax groceries. Car registration is expensive. There is income tax which I found strange because of how high the sales taxes are. For a state with such a high retiree population I would expect more. Meaning there are really no breaks here on your pension. It will be taxed but your SS will not. The school tax that is correct. Many retirees in the retirement communities do not pay it. I live in one but I don't own. Until I lived here I never heard of not paying taxes to fund schools. That was a new one for me. I paid them all the years I did own a home. So I don't know how the schools make up for lost tax revenue in this state, but I know Arizona is near the bottom of the list for schools in this country. Rather sad.

I've only been here since Sept. Truthfully other than the housing, prop tax, ins. I don't think its such a cheap place. Utilities are a constant and they are expenisive. You have to budget a lot more than $100 a month for electricity. I had no idea I would be using heat this much here in winter. It's not that it is fridgid cold, its some of these houses are not insulated very well. The indoor temp will match the outdoor temp really fast in older homes here without the required heat. I'm talking 30 year old homes. Which to me is not an old home, but here it is considered old.

I don't blame your wife for looking at the whole picture. People should there is a lot more to consider than cheaper housing in a new location. Because of the massive size and lack of transit in this particular Metro. You will drive and you will drive a lot. That means gas and lots of it. You are at the mercy of the gas stations and the current price. I think all this gas and maintenance on a vehicle is a huge cost to add to ones budget.

So do look at the overall costs. Personally I think there are cheaper places to live. Places that don't involve all this driving in this car centric dusty environment. Of course you might not want to live in the cheaper alternatives. If you ever consider other areas on cost savings for retirees. Georgia allows some 30,000 in income tax deductions for retirees. I believe it is rated very high for retirees who's prime consideration is tax deductible income.

[Bummer]

Taxes and Cost of Living expenses are a "depends on where you're from" type of thing, ReconJohn.

I relocated to Tucson from California back in the mid 90's and taxes, including Sales Taxes, Income Taxes, Property Taxes and Vehicle Registration Fees were significantly lower. From what I understand the differences are even greater now than 15 plus years ago.

Also, utilities, insurance and gasoline are all considerably less expensive.

Being from Wisconsin, you will also save on Heating Bills in the Winter not to mention Bug Spray in the Spring, Summer and Fall.

! ! ! ! ! !

Good Luck on your Retirement Relocation.

[youtamwright]

I single with two kids on with special needs, is AZ a place where you can start over? Or is it hard to get a job and desent school with a nice reseasonable priced place to live? NEED HELP

[cacto]

Originally Posted by youtamwright

I single with two kids on with special needs, is AZ a place where you can start over? Or is it hard to get a job and desent school with a nice reseasonable priced place to live? NEED HELP

It's tough here with jobs, but not impossible. Times have been tough here since the economy took a dive. You can find apartments and condos with 2 bedrooms from $500 to $900 a month. You can rent a house for around $1000 a month. Do your homework on school districts, Madison in Central PHX is good.

No way to sugar coat it, it's hot as hell for 5-6 months of the year, nice the rest of the time.

[westcoastforme]

Originally Posted by Ponderosa

Figure 9-10% sales tax on everything - 2% on food though some of the cities exempt food. The one that puts a dagger in the hearts of most newbies, though, is vehicle registration. It can run about 500 bucks a year for a new car and several thousand for a motorhome.

I wonder if someone moved to Arizona but were using their brothers car that was registered in IL, could they get away with not paying the 500 dollar registration fee? And say they drive back and forth to IL several times a year, I don't see how a person could be ticketed if the car was registered to an Illinois address. Opinions?

[corydon]

Originally Posted by westcoastforme

I wonder if someone moved to Arizona but were using their brothers car that was registered in IL, could they get away with not paying the 500 dollar registration fee? And say they drive back and forth to IL several times a year, I don't see how a person could be ticketed if the car was registered to an Illinois address. Opinions?

That ain't nice. They use al the nice interstates and highways, these fly overs don't grow by itself. But then not paying for it, cheap....

I

[westcoastforme]

I'm not saying if I ever moved to Arizona I would try it. I'm just wondering if one had a willing family member to "lend" them their name for title and registration purposes, could one get away with it? Registration in Illinois is 100 a year. So after ten years that would be a savings of 400x10 years=4000$

Just wondering!!