Opportunity to Move to Denver

[hammertime33]

Originally Posted by lowndes

Thanks good to know. I was already budgeting in the state income tax but was unaware of the car tax. I'll have to look into that.

It can catch new residents off guard when their car registration bill is $900 - although the tax varies widely. It's based off the weight of the car, the original MSRP of the car, and how old the car is (the tax decreases as the car depreciates).

[Texas Ag 93]

The idea that the lower property taxes will somehow "balance out" the increased tax burden from income taxes is something I have never understood. Obviously, it does not balance out if you have a middle to higher income. Yes, I now pay almost $7K less a year in property taxes than I did in TX, but I pay a whole, whole lot more than that in state income tax in CO., whereas my bill in TX was $0.

But, it doesn't really bother me because the income tax rate in CO is a flat tax and is only around 4.63%. I consider that to be very fair, and much lower than many other states we considered living in. If you just can't stomach paying state income tax, you have to live in TX, WA, FL or one of the few other places that don't have it. Either that, or don't complain, I say.

Now, the vehicle tax is something that really bothers me for a variety of reasons. One, you already paid tax on the vehicle when you bought it, and the other that the value of the vehicle factors into it at all. There is no rational argument that can be made, IMO, why vehicle value plays into it. Size, gas use, yes, but value.....sorry, No.

[hammertime33]

Originally Posted by Texas Ag 93

The idea that the lower property taxes will somehow "balance out" the increased tax burden from income taxes is something I have never understood. Obviously, it does not balance out if you have a middle to higher income. Yes, I now pay almost $7K less a year in property taxes than I did in TX, but I pay a whole, whole lot more than that in state income tax in CO., whereas my bill in TX was $0.

But, it doesn't really bother me because the income tax rate in CO is a flat tax and is only around 4.63%. I consider that to be very fair, and much lower than many other states we considered living in. If you just can't stomach paying state income tax, you have to live in TX, WA, FL or one of the few other places that don't have it. Either that, or don't complain, I say.

I never made a "balance out" argument or statement. Clearly, how a state structures it tax and fee regimes will have different effect on different classes of people. But that's not a complete analysis - you'd also have to consider how that tax money is then "given back" to these different classes via various welfare regimes.

The OP made a statement along the lines of 'now that I know the property tax rate in Colorado, I can increase my housing budget form 450k to 600k.' I was just simply making the point that there are additional taxes she'll have to pay in CO as opposed to Texas that she might not be aware of and which she should factor into any housing budget analysis.

Now, the vehicle tax is something that really bothers me for a variety of reasons. One, you already paid tax on the vehicle when you bought it, and the other that the value of the vehicle factors into it at all. There is no rational argument that can be made, IMO, why vehicle value plays into it. Size, gas use, yes, but value.....sorry, No.

The Colorado vehicle ownership tax is exactly analogous to real property property taxes - and in terms of taxing as a percentage of value, it's analogous to retail sales taxes (a shirt's a shirt - why should a 5 dollar shirt be taxed more than a 500 dollar shirt?). Do you have the same issue with them?

[Texas Ag 93]

hammertime, you are absolutely right and my response was not directed at your previous comment specifically. In fact, I had originally quoted you directly, but then edited it because I didn't want it to seem like an argumentative statement. I just tend to see a lot of comments on the C-D forums about the "trade off" between income and property taxes, and at a certain income level (which is lower than you might expect), the "savings" from lower property taxes just can't be "made up" because you will still lose out in terms of income taxes. And, yes, you also have to factor in how a State gives back and provides services with the revenue gained from income taxes. You really do have to look at the tax burden in its totality, because a State is going to get $$ from you one way or another.

The vehicle tax is, indeed, a personal property tax. Your analogy of the shirt is an interesting one, I hadn't thought of it that way. I guess my real problem with it is that it taxes you on something you already paid taxes on once. Moreover, it should be used solely for infrastructure and road maintenance, and I don't believe a 60K vehicle uses any more road than a 30K vehicle.

We obviously disagree on these points, and we have strayed off topic anyway, so I won't say anymore.

[davebarnes]

Each person/family has to do their own tax analysis.
For us, Colorado is good.
House, $600K - $3300/yr (in the City & County of Denver)
Income tax - $2300/yr (owning a small business helps keep it lower)
Car registration, 2007 Audi - $125/yr
Sales tax - I have no clue what we pay annually