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It's all down to where you want to live. If he loved Nebraska he would find some way to justify in his mind that that tax was okay and/or a non-issue.
I think it's pretty clear we all do that...
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I do love Nebraska Minnesconsinite. It is just that I like the Western part of the state more than the East end of the state where I live. I like Montana also and have thought about making the move there for many years. Nebraska taxes are fairly high compared to Montana but otherwise I think the cost of most everything averages out. We do have cheap electricity here in Lincoln, Nebraska but how it compares to Montana I don't know. My 1,100 sq/ft apartment averages out to about $90 per month over a year (all electric).
By the way, you do know that "some" towns in Montana do have a sales tax. Or at least, that's what I understand. I have not encountered one in my travels, but then again, I don't travel the "swankier" routes.
Where I live, in Wyoming, the sales tax is 6%. I remember growing up in South Dakota everybody complained when they raised it from 1% to 2%. People had a fit.
I have to admit that the overall cost of living is higher here than in West Virginia. Food prices, eating establishments, property taxes.. We've noticed the increase in the overall cost.
We went out to eat breakfast this morning (My wife, daughter and I) at a local joint- nothing fancy just eggs, sausage, some flapacks.. We did splurge a little and had milkshakes with our meal- it was a $35 bill. Same breakfast at a local WV eatery would've been $25 or so (milkshakes included).
We don't eat out very often, but it is noticeable.
I agree, restaurants here are waaayy more expensive, but groceries seem to even out. The biggest difference between shopping in MT and in the midwest/east is a lack of variety. Many products just aren't available here, or are hit-or-miss at the supermarket (so when you see something you really like, stock up!). Basically it's difficult to get stuff to the stores, transport-wise, especially in the winter.
GL, we have family in Lincoln, NE and they came to visit us in Missoula this summer. They've lived there for forty years, give or take, and would never move; but they kept telling us "Oh, NOW we understand why you live here..." I think they were surprised that we have modern amenities here, like paved streets and a shopping mall.
One thing I've found since moving away - Montana may not have tax, but the base price is higher. Everything from milk to houses. In Great Falls, I never found a gallon of milk for under 2.99 (occasionally 2% would go below that price on sale, but that was rare, and I prefer not to drink 2% normally anyway). I thought I was getting a good deal when I bought the brand name Viva (Meadow Gold) at Walgreens for $2.99 per gallon.
Since moving back to tax-paying Wisconsin, I now buy my milk at Kwik Trip - a large chain of gas stations found in Wisconsin, Minnesota, and Iowa. Last gallon I bought was $2.59... no tax (I guess they don't tax milk... some items in some places they just choose not to tax.. I'm still hazy on the whole rhyme and reasoning behind what they tax and what they don't). That's regular price there all the time. And I have a milk punch card. So after so many gallons I'll get one free.
We also have a discount grocery store called Aldi. The whole concept behind it is very cheaply-priced groceries. Not a huge selection, but you can get some things very cheap. Milk is under $2.50 a gallon (don't quite remember... I wanna say between $2.20 and $2.30, but I'm not going to buy milk made in another state when I live in Wisconsin. I think the kind sold at Aldi comes from Iowa. I'm very proud of my state and will buy local anytime possible, especially dairy.)
So yeah... the "no tax" thing sounds glorious, but the base price is where they get ya. It's almost like they calculate the tax in the price for ya. lol
milk for 2.59 a gallon? heck, I live in Wisconsin with a creamery in town as well and cant get any milk here for less than 3.49 a gallon.
milk for 2.59 a gallon? heck, I live in Wisconsin with a creamery in town as well and cant get any milk here for less than 3.49 a gallon.
Interesting, what city?
Well, if there's a Kwik Trip anywhere nearby I recommend you get to it. My part of the state is relatively affordable all-around though, mostly if you're a renter and not paying property tax. I know milk is expensive at the Wal-Mart here. In Montana I always bought the off-brand kind at Albertson's called Shopper's Value, the Viva Meadow Gold cheap at Walgreens, or the Great Value brand at Wal-Mart. It was always about $2.99 or so. But Wal-Mart here in WI has milk over $3 at all times, even their Great Value brand. And the local brand they carry for us is Kemps. I love Kemps dairy products (that's the brand we missed after we left, mom & I), but damn. Why would I buy a gallon for around three and a half bucks there when I can get it so cheap elsewhere in town... and still made locally? Kwik Trip carries their own Nature's Touch products out of LaCrosse.
I also heard from a New York poster on this site that we don't have ice cream in WI either, only "frozen custard." (???) lol
I don't live in Montana but I may make the move in the future. Currently I live in Lincoln, Nebraska but I am considering a move. A thread I started in the Nebraska Forum explains one reason why.
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Yesterday I needed to buy a Top Up card for my Virgin Mobile phone. I was in one of the local grocery stores that sells various Cell Phone minute cards. They had a Virgin Top Up card for $30/400 minutes. When I paid for it at the register instead of the usual 7% sales tax that would equal $1.40 the total was $4.18 in taxes in addition to the $30 purchase price. This is the Cell Phone use tax that our city council passed recently. Now I realize taxes are necessary but I also feel that if there is ANY way a citizen can legally avoid paying a tax he has a duty to do it.
I have friends and relatives living in Montana where there is no sales tax. I pay $30 plus taxes every month to buy Virgin Mobile Top Up cards. I can have a relative buy 12 $30 Top Up cards for me in Montana for $360 plus a $.44 stamp. Buying the same cards here In Lincoln would cost me $410.61. In other words I can save $50.61 by buying them in Montana. It pays to have friends in different places.
GL2
The following more global, objective analysis may be more useful to you than your anecdotal experience:
Sales Taxes
State Sales Tax: No general sales tax. A new 3% tax on accommodations and campgrounds is added to the 4% tax on rental vehicles
Gasoline Tax: 27.8 cents/gallon
Diesel Fuel Tax: 28.6 cents/gallon
Cigarette Tax: $1.70 cents/pack of 20
Personal Income Taxes
Tax Rate Range 1%; High - 6.9%
Income Brackets: Lowest - $2,500; Highest - $15,600
Number of Brackets: 7
Personal Exemptions
Single - $2,140; Married - $4,280;
Additional Exemptions: 65 or older - $2,040
Standard Deduction: (2008) 20% of AGI. If single not less than $1,780 or more than - $4,010; If married filing jointly not less than $3,560 or more than $8,020
Federal amount
Federal Income Tax Deduction Full
Retirement Income Taxes: Montana taxes all pension and retirement income received while residing in Montana to the extent it is taxable on the federal return. Tier I and Tier II Railroad Retirement benefits are 100% exempt from Montana income tax. The state allows a pension and annuity income exemption of up to $3,600 per individual, if certain income limitations are met. Early distributions from an IRA do not qualify for this exemption. Social Security benefits taxable in Montana may be different from what is taxable federally. You will need to complete Worksheet VIII - Taxable Social Security Benefits to determine your Montana taxable social security.
Regarding interest income earned, there is a partial interest exemption for taxpayers age 65 or older. If you are single and age 65 or older at the end of the calendar year, you can exempt up to $1,600 of the interest income that you reported in your federal adjusted gross income. If you are married and filing a joint return with your spouse and at least one of you is age 65 or older at the end of the calendar year, you can exempt up to $1,600 of the interest income that you reported in your federal adjusted gross income. If you are married and filing your return separately and are age 65 or older at the end of the calendar year, you can exempt up to $800 of the interest income that you reported in your federal adjusted gross income. Please note, however, that you are not allowed to exclude interest income earned by and reported by your spouse. For the purpose of this exclusion, when you determine the amount of your interest income, you should consider distributions commonly called dividends on deposits or share accounts as interest. Under no circumstances can you exclude more interest income than what you have reported in your federal adjusted gross income
Montana taxes some retirement benefits. If you have reported taxable retirement income on the federal income tax return, you may be entitled to a partial exemption of this income. Tier I and Tier II Railroad Retirement benefits are 100% exempt from Montana taxation. Also, if you have received a disability pension, which is identified as a distribution code 3 on your 1099R, you should use the state's disability pension worksheet to determine your deduction instead of the retirement income exclusion
If you have received retirement income other that Tier II Railroad benefits, you should complete state form W, Worksheet IV in order to determine the amount of your exclusion. Your retirement exclusion is limited to the lesser of your taxable retirement income that you received or $3,600, as long as your federal adjusted gross income is $30,000 or less and you are filing a single return, filing jointly with your spouse and only one of you have taxable retirement income, or you are filing as head of household. If both you and your spouse have received retirement income and you are filing jointly with your spouse, and your federal adjusted gross income is $30,000 or less, you both can exclude the lesser of your taxable retirement income that you receive personally or $3,600 each for a maximum of $7,200. If you are filing your income tax return separately on the same form, or on separate forms, the lesser of your retirement income or $3,600 applies separately to both spouses as long as your separately state federal adjusted gross income is $30,000 or less
Retired Military Pay: See above. Survivor benefits are taxed following federal tax rules.
Military Disability Retired Pay Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
]VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
All property (real or personal) is subject to state and local taxes. The assessed valuation of real property is based on 100% of its fair market value, then reduced by a a phase-in factor and taxed as a percentage thereof. The state established the tax rate to determine the assessed valuation while local taxing units establish the mill levies to determine the property tax. Personal property is also taxed, the most common being motor vehicles. All residential properties receive a 34% exemption (for 2008) but residents must file for the exemption. Residential property of certain disabled veterans, and the spouses of deceased veterans, is exempt from property taxation. Montana property owners can have their property taxes reduced if they meet certain qualifications. Any homeowner or renter age 62 or over can apply for a credit if they have lived in Montana for 9 months, occupied a residence for 6 months, and had a gross household income of less than $45,000. For a better understanding of property taxes, click here.
Inheritance and Estate Taxes
There is no inheritance tax and no estate tax is due for deaths occurring in 2005 and thereafter
For further information, visit the Montana Department of Revenue (http://www.state.mt.us/revenue - broken link) site or call 406-444-6900.
Note: The state has a statutory provision for automatic adjustment of tax brackets, personal exemptions or standard deductions to the rate of inflation
Sales Taxes
State Sales Tax: 5.5% (food and prescription drugs exempt); local option taxes could add an additional 1.5% to the state rate
Gasoline Tax: 26.8 cents/gallon
Diesel Fuel Tax:[/b] 26.8 cents/gallon
(Fuel taxes are variable and are reset July 1 and January 1)
Cigarette Tax: 64 cents/pack of 20
Personal Income Taxes- 2.56%; High - 6.84%
Personal Tax Credits: Single - $118; Married - $236; Dependents - $118;
Standard Deduction:[/b] Single - $5,700, Married - $11,400
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction None
Retirement Income Taxes: Railroad Retirement benefits are exempt. Out-of-state government pensions are fully taxed. Social Security is taxable to the extent of federal taxation.
Retired Military Pay Follows federal tax rules.
Military Disability Retired Pay Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office
Property Taxes
Real property is assessed at 100% its actual (market) value. A property tax credit is provided for all parcels of property based on the valuation of each parcel. The estimated credit for 2009 is $82.22 for each $100,000 in valuation. The state has a homestead exemption that provides relief from property taxes by exempting all or a portion of the valuation of the homestead from taxation. There are three groups of exemptions: A) persons age 65, B) certain disabled individuals, and C) certain disabled veterans and their widow(er)s. Call 800-742-7474 or 402-471-5984 for details or click here.
Inheritance and Estate Taxes
Nebraska's inheritance tax, which is collected at the county level, applies to bequests, devises, or transfers of property or any other interest in trust or otherwise having characteristics of annuities, life estates, terms for years, remainders, or reversions. Nebraska inheritance tax is computed on the fair market value of such annuities, life estates, terms for years, remainders, and reversions. The fair market value is the present value as determined under the provisions of the Internal Revenue Code of 1954, as amended, and its applicable regulations with respect to estate tax. The Nebraska estate tax and generation-skipping transfer tax have been repealed for decedents dying or transfers made on or after January 1,2007.
For further information, visit the Nebraska Department of Revenue site.
* The tax brackets reported arefor a single individual. For married couples filing jointly, the same rates apply for income under $4,000 to over $50,000.
Note: The state has a statutory provision for automatic adjustment of tax brackets, personal exemptions or standard deductions to the rate of inflation
In addition to the analytical approach, please factor in the subjective, i.e. it will cost you several thousand dollars to retire all those "Go Big Red" sweatshirts and purchase new maroon University of Montana Grizzly shirts.
Last edited by ElkHunter; 11-15-2010 at 05:15 AM..
Reason: Don't ever use that editor again. Had to clean up entire post.
I live in montana, and have lived in many other states, believe me a sales tax would be a blessing, our other taxes are high, to register a new vehicle in montana you have to pay a personell property tax my neighbors new duramax was 600 to register and will be untill it 5 years old, my little 1100 square foot house in a small town in central montana is 1200 yearly... or income tax is 7 percent for state more if you make over a certain amount, your cell phone will be taxed also, mine is.. also the towns of red lodge, west yellowstone have a resort tax same as a sales tax, believe me a sales tax would be good for montana... not to mention our wadges here and the cost of everything else, 20 acres in the country with a house, no water you have to haul it, has electricity though. 329.000 dollars.. my little 1100 square foot house on a lot in our small town, 148,000 dollars... and dont count on doing anything on your land, the covenants are another thing....
By the way, you do know that "some" towns in Montana do have a sales tax. Or at least, that's what I understand. I have not encountered one in my travels, but then again, I don't travel the "swankier" routes.
Where I live, in Wyoming, the sales tax is 6%. I remember growing up in South Dakota everybody complained when they raised it from 1% to 2%. People had a fit.
Wyoming has no state income tax... thats nice!!!
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