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Old 06-24-2012, 07:09 PM
 
Location: East Grand Rapids, MI
845 posts, read 3,018,325 times
Reputation: 236

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Quote:
Originally Posted by actinic View Post
Minneapolis doesn't charge an income tax like GR does.
True, but it's a small price to pay and amounts to 1.5% (I think... I don't live or work in GR).
Not to mention, if that is the big reason you don't want to live in GR, I'm pretty sure you can live in a town outside of GR and avoid that income-tax.
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Old 06-25-2012, 10:28 AM
 
Location: West Michigan
12,083 posts, read 34,948,836 times
Reputation: 16907
Quote:
Originally Posted by actinic View Post
Minneapolis doesn't charge an income tax like GR does.
MN State income tax MORE than makes up for a local income tax GR imposes though. Anything above an income of $23,670 is taxed at a State level 2.7% higher than MI state income tax... income above $77,730 is 3.5% higher than MI. Below $23,670 MN rates are still a full 1% higher than MI taxes. GR income tax is nowhere near those rates so the taxes are LOWER overall in GR. Thanks for bringing taxes up, the OP might have forgotten to check those fully and made a costly error choosing Minneapolis. Sales tax is also higher in MN than MI (6.875% vs 6%) Really... 6.875% for a sales tax... that right there is screwed up.
Income tax rate in Grand Rapids for 2012 is 1.4% for residents and corporations; 0.7% for non-residents who work in the city limits. (Go down the the "Uniform City Income Tax" section of the link to see cities that charge their own income tax and what the rates are for 2012.)

State income tax rates.

Last edited by Bydand; 06-25-2012 at 10:46 AM..
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Old 06-25-2012, 10:31 AM
 
Location: Grand Rapids Metro
8,872 posts, read 17,741,219 times
Reputation: 3833
Quote:
Originally Posted by suydam View Post
True, but it's a small price to pay and amounts to 1.5% (I think... I don't live or work in GR).
Not to mention, if that is the big reason you don't want to live in GR, I'm pretty sure you can live in a town outside of GR and avoid that income-tax.
It's 1%. But property taxes in GR aren't bad. Mpls has a 7.775% sales tax and 16.75% tax on alcohol in downtown Mpls.
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Old 06-25-2012, 01:38 PM
 
1,426 posts, read 2,655,240 times
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Quote:
Originally Posted by Bydand View Post
MN State income tax MORE than makes up for a local income tax GR imposes though. Anything above an income of $23,670 is taxed at a State level 2.7% higher than MI state income tax... income above $77,730 is 3.5% higher than MI.
GR is taxed on the first dollar earned, not above any income threshold. This makes the effective tax rate higher for lower wage earners.

Magellan, it's 1.5% - Income Tax General Information
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Old 06-25-2012, 01:46 PM
 
1,426 posts, read 2,655,240 times
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Quote:
Originally Posted by suydam View Post
True, but it's a small price to pay and amounts to 1.5% (I think... I don't live or work in GR).
'Small' is a relative term. To a higher wage earner it's a savings of a couple of hundred dollars a month or more simply by living on the other side of the street from the city.
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Old 06-25-2012, 01:49 PM
 
Location: East Grand Rapids, MI
845 posts, read 3,018,325 times
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Quote:
Originally Posted by actinic View Post
'Small' is a relative term. To a higher wage earner it's a savings of a couple of hundred dollars a month or more simply by living on the other side of the street from the city.
Not when the decision is GR vs. MSP.

In that situation, MSP is costlier (according to the post above).

When the decision is GR vs. (say EGR) you might make up the difference in property taxes, or you might choose to live in Ada and avoid both.
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Old 06-25-2012, 02:16 PM
 
Location: Grand Rapids Metro
8,872 posts, read 17,741,219 times
Reputation: 3833
Quote:
Originally Posted by actinic View Post
GR is taxed on the first dollar earned, not above any income threshold. This makes the effective tax rate higher for lower wage earners.

Magellan, it's 1.5% - Income Tax General Information
Ah, it's been a few years since I worked in the city. Whoops.
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Old 06-25-2012, 03:10 PM
 
1,332 posts, read 1,275,395 times
Reputation: 2111
I grew up not too far from Grand Rapids, and have been to Minneapolis multiple times. Of the two towns, I far prefer Minneapolis. It may be a bit colder, but it also actively makes the most out of its winters, with festivals and events. It still has a fairly lively downtown, and lots of fun things to do. Grand Rapids on the other hand, well, let's just say there's a reason that the locals sometimes call it "bland" rapids. Other than the stuff Meijer and the Van Andels have brought in, not much goes on there. Really, the cultural resources you will have in Minneapolis will just far outweigh what is available in GR--if I were you, I'd take Minneapolis in a heartbeat. BTW, this conversation about the relative importance of tax percentages that's gone on in the thread above: that's classic Grand Rapids for ya.

Last edited by jerbear30; 06-25-2012 at 03:22 PM..
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Old 06-25-2012, 03:17 PM
 
Location: West Michigan
12,083 posts, read 34,948,836 times
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Quote:
Originally Posted by actinic View Post
GR is taxed on the first dollar earned, not above any income threshold. This makes the effective tax rate higher for lower wage earners.
If you had read all of my post I made that clear as well in the very next sentence you didn't quote. I have a feeling though that the higher sales tax will wipe out that small difference in a hurry though. If a person lives outside the city limits of GR and works in the city though, even at the lowest income levels, the State of MN income tax is higher than MI income tax + GR income tax combined.
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Old 06-25-2012, 06:29 PM
 
1,426 posts, read 2,655,240 times
Reputation: 832
Quote:
Originally Posted by Bydand View Post
If you had read all of my post I made that clear as well in the very next sentence you didn't quote. I have a feeling though that the higher sales tax will wipe out that small difference in a hurry though. If a person lives outside the city limits of GR and works in the city though, even at the lowest income levels, the State of MN income tax is higher than MI income tax + GR income tax combined.
It wasn't clear at all. Your next sentence states: 'Below $23,670 MN rates are still a full 1% higher than MI taxes.' This suggests a GR resident's tax bill would be less. Unless Minneapolis *also* hits you with taxes on the first dollar earned then it's possible your tax bill in GR would be greater.

Last edited by actinic; 06-25-2012 at 06:48 PM..
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