Live in MS but work in TN. How taxes work? (Southaven: sales, appliances) - Mississippi - City-Data Forum

ccarr4 · 08-12-2011, 11:38 AM

I currently live in TN and work here but thinking of moving across the border to MS but continue to work in TN. How do the taxes work when you do this. I know TN doesn't have a State Income Tax but I believe MS does, so will I have to have MS withhold from my check? Do I file MS taxes? Any help would be appreciated, I have no clue how this all works. Thank you all!

Robert_J · 08-12-2011, 01:05 PM

Yes. You will have MS tax withheld from your check.

Yes. You will file both federal and MS state taxes. Wal-Mart and Sam's here in Southaven sell both version of Turbo Tax (Fed only / Fed & state).

MetroCity2011 · 08-18-2011, 11:34 AM

Also, as a MS resident, you will have to register your car in MS and get a MS tag, even if you own another property in TN and have a legitimate reason for having a TN tag. If you don't do this, you will get a ticket in your own private drive. If you continue to ignore the nice officers, they will tow your car from your private property and it will cost you hundreds of dollars to get your car back. Then the nice officers will continue to stalk you and ticket you until you finally understand that they are not kidding.

The price of the MS tag is calculated based on the value of your car. In TN, all tags cost the same, so be prepared to pay a lot more than you're accustomed to.

However, the sales tax is less in MS, so most people in TN drive to MS for large purchases like appliances and cars.

rhymetime · 08-18-2011, 01:27 PM

Quote:

Originally Posted by MetroCity2011

However, the sales tax is less in MS, so most people in TN drive to MS for large purchases like appliances and cars.

If you live in TN, you're gonna pay TN sales tax on a car.

WestbankNOLA · 08-18-2011, 01:55 PM

Quote:

Originally Posted by MetroCity2011

Also, as a MS resident, you will have to register your car in MS and get a MS tag, even if you own another property in TN and have a legitimate reason for having a TN tag.

How do they enforce that if you have a legitimate reason for TN registration and plates? That sounds almost illegal or is the law saying that any vehicle housed in MS must have MS registration? In that case what if the the owner of the vehicle resides out of state?

Robert_J · 08-18-2011, 02:44 PM

I'm not sure what the poster means by the license post. If you are driving a work truck of a company based in TN, then you won't get a ticket.

Quote:

even if you own another property in TN and have a legitimate reason for having a TN tag

Which is your primary residence? That should be easy to approve.

MetroCity2011 · 08-20-2011, 12:33 AM

You can drive your car with a TN license plate in MS, but don't plan on parking it overnight for more than a week. Two weeks and you'll start attracting attention. Three weeks, and you'll start getting warning citations. After so many warnings, even if you have a garage, where your car is not visible, don't be surprised if you park at the grocery store and your car has been towed by the time you come out. I'm assuming if you work in TN, you'll be living in north MS, like Olive Branch. Yes it sounds illegal, and yet, that's what happened. I'm talking from personal experience of a very close friend who was going to fight the injustice. My friend didn't have the money to keep fighting and finally gave up and registered the car. But you can do whatever you want.

An Einnseanair · 08-22-2011, 11:56 AM

Quote:

Originally Posted by MetroCity2011

You can drive your car with a TN license plate in MS, but don't plan on parking it overnight for more than a week. Two weeks and you'll start attracting attention. Three weeks, and you'll start getting warning citations. After so many warnings, even if you have a garage, where your car is not visible, don't be surprised if you park at the grocery store and your car has been towed by the time you come out. I'm assuming if you work in TN, you'll be living in north MS, like Olive Branch. Yes it sounds illegal, and yet, that's what happened. I'm talking from personal experience of a very close friend who was going to fight the injustice. My friend didn't have the money to keep fighting and finally gave up and registered the car. But you can do whatever you want.

This sounds like either someone was reporting your friend (possibly someone who was obeying the law and actually paying owed taxes), he lived in an area that is heavily patrolled by the local police, or else he specifically attracted the attention of the local police somehow. And maybe in the Southaven area where a LOT of people live in MS but work in TN this is a big problem and is heavily policed. I've lived out of state for many years. I visit for multiple weeks at a time with out-of-state tags and I've never had a problem, but then my family lives in the middle of nowhere.

Either way, if your primary residence is in MS (where you have utilities, where you vote, where you live most of the time) you should register your vehicle in MS. Anything else really is breaking the law. I don't know what the law says if you split time with multiple residences in both states, but just owning a piece of land in multiple states is NOT a legal way to hide from paying taxes.

As for tag cost, TN charges a high sales tax; state plus local varies between 9 and 9.75% (lower for food and a few other items). TN does NOT have a wage-income tax, and it does NOT have a "personal property" tax (tax to own things like cars, boats, motorcycles, etc.). MS has a much lower sales tax, but it DOES charge a wage-income tax and a personal property tax. This personal property tax is added on to the cost of the tag, so your tag cost varies by the value of the vehicle AND by where you live. In a rural area your tag may be $150. A few miles away inside city limits the tag for the same vehicle may be $800.

To answer the original question, if you live OR work in MS you are legally required to pay MS taxes. Most employers near state lines are familiar with the requirements and withhold accordingly.

MetroCity2011 · 08-23-2011, 09:55 AM

Quote:

Originally Posted by jwkilgore

To answer the original question, if you live OR work in MS you are legally required to pay MS taxes.

This may make sense to someone used to MS customs, but for someone coming from TN, the part about registering your car is a little odd. I understand about paying your share of taxes, but they should tax something other than cars.

There are so many transient people in this tri-state area who are only here temporarily: students, regional employees that cover the entire SE, people who come for medical procedures, etc. (Like St Jude hospital for example, people come from out of state and bring their car, sometimes they stay here for months.)

This is the logistical capital of the world that attracts a lot of people from other areas, often for extended periods of time. Harassing visitors and causing them to have a bad experience in MS is not very welcoming. That's ok, they don't get harassed in TN, not by cops anyway.

An Einnseanair · 08-29-2011, 06:46 AM

Quote:

Originally Posted by MetroCity2011

This may make sense to someone used to MS customs, but for someone coming from TN, the part about registering your car is a little odd. I understand about paying your share of taxes, but they should tax something other than cars.

There are so many transient people in this tri-state area who are only here temporarily: students, regional employees that cover the entire SE, people who come for medical procedures, etc. (Like St Jude hospital for example, people come from out of state and bring their car, sometimes they stay here for months.)

This is the logistical capital of the world that attracts a lot of people from other areas, often for extended periods of time. Harassing visitors and causing them to have a bad experience in MS is not very welcoming. That's ok, they don't get harassed in TN, not by cops anyway.

It's not just a MS custom. Previously I worked in Kansas City, MO, but lived outside the city limits. KCMO has a 1% local income tax, which I had to pay. I knew people who lived in the city limits but worked outside. They had to pay it too.

Currently I live in Chattanooga, TN, about 1/4 mile from the Georgia border. Like MS, GA has a state income tax and also charges a personal property tax (this is the reason the cost of vehicle tags are so high in MS). If you live OR work in GA you have to pay the tax.

If you are a transient (college students, temporary job relocation, etc.), income taxes still apply. Permanent residency doesn't matter. But registering a car... there's nothing on the MS web site about registering a car if you're a temporary resident. Just says you have 30 days to register after a move. This would probably be worth a call to the Mississippi DMV for clarification. It doesn't make sense to register a car for 4 months (one school semester) just to have to re-register it again when you go back home or travel for the holidays.