I don't get the no state income tax hype (Dallas: property tax, living in)

[Need4Camaro]

Originally Posted by MurphyPl1

I would much rather pay to a local entity to where I can actively engage in where my tax dollars go rather than have a dysfunctional state legislature be involved.

Recapture is a good example. I pay taxes to PISD, know several school board members and speak up on tax rates and budgets. But the state see fit to steal some of that money and move it to parts unknown. Where taxation without representation rules. Ex: https://abc13.com/texas-water-park-s...nding/4162905/

If I am not mistaken, the state does not collect Property Tax, The county collects them and they are distributed through local schools (taking the largest share) and so forth. I believe that the state only collects sales & fuel tax.

[TheOverdog]

The county collects them and they are distributed through local schools (taking the largest share) and so forth. I believe that the state only collects sales & fuel tax.

The locality collects them, but then via Recapture the localities distribute to the state, which then adds it to the General Fund, so your local school taxes are paying for whatever the State Government wants to spend it on, with some percent (but less than 100%) going to pay for public schooling.


I actually don't have a problem with recapture in general, but definitely feel the recapture caps should be lower than they currently are, so localities retain more of their collected taxes, and the model determining 'economically disadvantaged' is not very good and needs some adjustment.

[StealthRabbit]

Originally Posted by hereticiam

Elon Musk sure loved the no-state income tax.

We narrowed down our choices to GA and TX.
I did create a spreadsheet ...
We are leaning towards TX for the excellent public schools in North Dallas, ...
TX is 8.6%
GA is 8.9%

As shown here TX and GA are very close.

3 friends moved to Lucas / McKinney JUST for the schools, but... that's not a sure thing either, schools and leadership change.

while AK, WY, TN look pretty good for tax burden, they all have issues (Employment / wages for one, proximity to services ...), and the tax burdens as calcualted are distributed quite differently depending on your style of living. (housing, food, assets, cars, (personal property taxes).

Several friends have lived in AK and it is good earnings for teachers (if you can quallify for a position). WY also has decent schools and funding for teachers. Bust energy years are a problem for each state (as it is for Texas).

Schools... really depends on your kids and ages and objectives. I would move to Singapore for elementary school and get the kids in a Chinese public school. USA friends who did that kid's all aced the ACT and SAT and got FREE USA college.

Jr high age is a great time to travel (Buy a sailboat or motorhome)

Ours went to FT college for free instead of HS in Income Tax free / high wage WA. Saved them each ~$30 - 50k. Otherwise I would have stayed in Europe and they could have gone to college for free there.
https://research.com/universities-co...h-free-college
https://www.student.com/articles/cou...dy-free-europe

TO do over again... I would use my RE dollars to buy commercial property or a franchise, and rent my homes, wherever I felt like living. and travel FT internationally as a family (We did a lot of that). Tho I have owned 40+ properties and that has been good to me... ZERO property ownership sounds pretty good for flexibility and higher earnings on investment.

[lepoisson]

Needing to drive long distances, pay tolls, high car insurance rates, and high property taxes makes Texas not a low cost of living state. Sure, it’s lower COL than Los Angeles or NYC but I would argue that those cities are a lot more interesting to live in and have a better local culture than anything in Texas so that’s why some people like paying a premium to live there.

[Sunbather]

Originally Posted by lepoisson

Needing to drive long distances, pay tolls, high car insurance rates, and high property taxes makes Texas not a low cost of living state. Sure, it’s lower COL than Los Angeles or NYC but I would argue that those cities are a lot more interesting to live in and have a better local culture than anything in Texas so that’s why some people like paying a premium to live there.

I agree to a point, but here is the catch: those who are living in the burbs and driving long distances and dealing with tolls etc. are likely not the same ones who want to live in NYC anyway. They very likely prefer a different lifestyle. People like my wife and I and our friends who have lived in NYC, LA, Chicago etc. and also enjoy that lifestyle, are likely living a bit differently in Dallas than you're describing.

We, along with most of our friends fitting that description live inside 635 - most of us inside loop 12. I am not on toll roads or outside of 635 very often. I put about 2k miles a year on my car, and most of that is occasional trips to Austin. From the 'big city' perspective, while the offerings in Dallas are smaller, what Dallas offers us is nearby.

Those who are choosing to live in the burbs here are not likely to view the premium in NYC as worth it since their preferred lifestyles and priorities are obviously different.

[MurphyPl1]

Originally Posted by Sunbather

I agree to a point, but here is the catch: those who are living in the burbs and driving long distances and dealing with tolls etc. are likely not the same ones who want to live in NYC anyway. They very likely prefer a different lifestyle. People like my wife and I and our friends who have lived in NYC, LA, Chicago etc. and also enjoy that lifestyle, are likely living a bit differently in Dallas than you're describing.

We, along with most of our friends fitting that description live inside 635 - most of us inside loop 12. I am not on toll roads or outside of 635 very often. I put about 2k miles a year on my car, and most of that is occasional trips to Austin. From the 'big city' perspective, while the offerings in Dallas are smaller, what Dallas offers us is nearby.

Those who are choosing to live in the burbs here are not likely to view the premium in NYC as worth it since their preferred lifestyles and priorities are obviously different.

The Dallas area also has multiple business/entertainment districts. You really don't have to drive into Dallas for a job or to go to a concert or to dinner from the suburbs/exurbs if you don't want to.

[Sunbather]

Originally Posted by MurphyPl1

The Dallas area also has multiple business/entertainment districts. You really don't have to drive into Dallas for a job or to go to a concert or to dinner from the suburbs/exurbs if you don't want to.

Agreed except for entertainment, but then it's just a matter of preference for the type of entertainment. I am certainly not trying to speak negatively of the suburban areas. They are not areas I am interested in living in, but many people move here specifically to seek them, obviously because they enjoy what those cities provide them.

That being said, the types of things available there certainly are different. My wife and I both write/record/perform music and as such attend live music regularly. Very rarely are the shows we are interested in stopping outside of Dallas. Occasionally Irving, Denton or downtown FW. The museums we are interested in are in the urban areas of Dallas (or Fort Worth). The touring comedy, musicals, ballets, etc. we go to are in the city of Dallas.

There are of course lots of entertainment options in the surrounding cities. The ones we prefer just mostly fall in Dallas proper (and thus keeps our commute very close)

[Riley.]

Originally Posted by unknown00

All outsiders think the hype is real, and I get it if you rent, but I'd rather pay 5%-10% extra state income on my salary than pay an extra 1% on my house lol

Is anything related to education included as part of property taxes in TX?
In VT education is funded through the property tax. I pay about $1700 in town taxes but the 'education tax' tacks on another $3000.

[bgNCATL]

I haven’t read through all the post so someone may have mentioned this. It’s works out well for high earners and to an extent for renters. For average people owning a home, it usually comes out to a wash. Remember, in most other states, you will still be paying a property tax and an income tax. Even if their property tax is lower, doesn’t mean it’s going to be less overall once you factor in their income tax.

[TheOverdog]

s anything related to education included as part of property taxes in TX?
In VT education is funded through the property tax. I pay about $1700 in town taxes but the 'education tax' tacks on another $3000.

Yes,very similar, except in instances of recapture (or Robin Hood) for property poor districts, education tax is calculated, collected, and distributed by the independent school district level, not at the state level.