Sales tax in HSV and what is taxed (Huntsville, Madison: apartment, rent)

[Blind Bruce]

What do residents of Huntsville pay in sales tax? Is everything taxed? How about used houses, is there a tax on the purchase price?

[Reactionary]

Sales tax in Huntsville, Madison, and incorporated municipalities (OXR, Gurley, New Hope) is 8%. Triana is 7 1/2%. Sales tax in unincorporated Madison County is 5 1/2%.

Groceries and stuff are subject to sales tax.

Here's a post (http://www.flashpointblog.com/2008/05/28/madison-county-property-tax-facts/ - broken link) (by me) about sales / property taxes in Huntsville and Madison County (urging voters to Vote No to 1/2 cent Increase in Sales Tax on June 3).

Used houses are subject to annual property tax, not sales tax.

[ionlife]

Originally Posted by Reactionary

Sales tax in Huntsville, Madison, and incorporated municipalities (OXR, Gurley, New Hope) is 8%. Triana is 7 1/2%. Sales tax in unincorporated Madison County is 5 1/2%.

Groceries and stuff are subject to sales tax.

Here's a post (http://www.flashpointblog.com/2008/05/28/madison-county-property-tax-facts/ - broken link) (by me) about sales / property taxes in Huntsville and Madison County (urging voters to Vote No to 1/2 cent Increase in Sales Tax on June 3).

Used houses are subject to annual property tax, not sales tax.

Isn't the 1/2 cent increase to support the new high school? as someone who has come from high property taxes over sales tax in an area where people are mostly transient, that always bugged me. Sales tax is at least fair to all.

but i might be wrong about the reason for the increase.

[Reactionary]

cglover - it's a moot point now, the Sales Tax increase failed by 64% to 36% (we voted today - June 3 - in primaries - the sales tax was on the Madison County ballot).

"the new high school"? If you mean in Madison City Schools, yes, but they have other means available that they haven't even tried (for example: TIFs - special dedicated tax zones on new development - HSV is building a new Lee HS with one from the Harris Hill development).

The Sales Tax would most benefit Madison COUNTY Schools, which pays much less in property tax and sales tax than the municipalities. Neither HSV City or Madison City 'needed' the increase.

Our property taxes are pretty low, as you might have noticed, and are even lower in the County. The County School Board could raise property taxes or sales taxes IN THE COUNTY, but decided to try to get the Cities of Huntsville and Madison to pay for their schools.

From the blog cited in my post above (which also has a commentary from Mo Brooks, newly re-elected County Commissioner, on why the sales tax is bad).

Huntsville pays 27.5 mills school tax (Huntsville City Schools); Madison pays 27 mills school tax and Triana pays 25 mills school tax for their combined school system (Madison City Schools). Rural Madison County, Gurley, OXR, and New Hope pay 16 mills school tax for the Madison County School System.

Sales taxes are a regressive tax that affects the poor disproportionately (as a percentage of expenses) - everyone has to buy food. IMO Property taxes are more 'fair' because not everybody has to live in Hampton Cove, for example. One pays more for the privilege. Note that I say that as a person with fairly conservative views

[ionlife]

Originally Posted by Reactionary

cglover - it's a moot point now, the Sales Tax increase failed by 64% to 36% (we voted today - June 3 - in primaries - the sales tax was on the Madison County ballot).

"the new high school"? If you mean in Madison City Schools, yes, but they have other means available that they haven't even tried (for example: TIFs - special dedicated tax zones on new development - HSV is building a new Lee HS with one from the Harris Hill development).

The Sales Tax would most benefit Madison COUNTY Schools, which pays much less in property tax and sales tax than the municipalities. Neither HSV City or Madison City 'needed' the increase.

Our property taxes are pretty low, as you might have noticed, and are even lower in the County. The County School Board could raise property taxes or sales taxes IN THE COUNTY, but decided to try to get the Cities of Huntsville and Madison to pay for their schools.

From the blog cited in my post above (which also has a commentary from Mo Brooks, newly re-elected County Commissioner, on why the sales tax is bad).



Sales taxes are a regressive tax that affects the poor disproportionately (as a percentage of expenses) - everyone has to buy food. IMO Property taxes are more 'fair' because not everybody has to live in Hampton Cove, for example. One pays more for the privilege. Note that I say that as a person with fairly conservative views

I guess it depends where you live: in Fairfax County, the bulk of the school funds comes from property taxes and taxes on cars/vehicles. ANd there are A LOT of apartment dwellers w/school age children here who are temporary and use the infrastructure but pay zip in sales taxes and no property taxes because they rent. So for us it was a HUGE burden. Our property taxes will be half of what we paid here for a townhouse smaller than the house we bought in Madison. I agree with your point that people don't have to buy in Hampton Cove and can live smaller if they desire, but here the argument doesn't work.

Any rate, i wasn't sure if that was the reason for the tax increase proposal--building the school in Madison. Thanks for clarifying.'

[Keeper]

But don't owner's of those apts pay property taxes? Do apt dwellers pay property tax with their rent? Inquiring little mind just asking!

I know in FL there was no sales tax on food, but property taxes were sky high. There was no income tax or car tag tax either.

[ionlife]

Well, not sure about the details, but our sales tax is super low--we were actually floored by almost 10-% in Madison--yikes--but it was okay by me... better than that high property/personal property tax.

probably u are right about the rent jacked up-- but when people have 3-4 kids in apt using the system is it really the same net? But we should be grateful to own property and have the right to pay for it eh?

c

[marysally]

When I lived in Houston, the property taxes were more than 4X what I pay on a larger house in Madison. The sales tax rate was exactly the same as here in Madison. The only difference was that TX has no state income tax but I am still better off with the much lower property tax.