Perils of moving to a no-tax state

[TuborgP]

Originally Posted by Submariner

Ct around 2000 began a sales tax that was on some food items. They drew the line a 'value-added' foods. For example; Saltine crackers unsalted were not taxed, but salted crackers were taxed. In my mind, both items were made in a factory by a row of machines. But that was where they decided to draw the line.

Taxed: sugar coated nuts or salted nuts, pre-made frozen meals, gum, soda pop

Food sold ready-to-eat or wrapped as “take-out” including “snacks,” donuts, cookies, single slices of cake, are taxed.

“Junk food,” [donuts, cookies, and chips] are taxable as meals, unless it is sold in bulk.

SALES TAX ON FOOD AND PERSONAL CARE ITEMS

"... For example, a sale of five or fewer donuts, cookies, rolls or pastries is considered a meal and therefore taxable, while sale of more than five such items is a non-taxable bulk sale."

Yeah I did a search and couldn't find an updated list.

[Submariner]

Originally Posted by TuborgP

Yeah I did a search and couldn't find an updated list.

I heard some of the public debate as they were passing the law. It made as much sense to me as taxing things according to which colors were using in print the labels.

[ukiyo-e]

Originally Posted by jghorton

Seems like this article is focused on "The perils that could follow you from your previous high tax state, that doesn't want to lose your tax dollars." It doesn't really say anything about the advantages of moving to and living in a 'no state income tax' state. But, the headline "The advantages of not paying state income taxes" is probably too obvious and doesn't provide enough of a 'reader hook.'

I moved from CA to WA several years ago. I can't see any "perils" to saving thousands in state income tax or paying just slightly more 1/3 the amount of property tax on a house that's 3/4 the size of the one I had there. Our sales tax is kind of high, but it's only 0.1 percent higher than the county sales tax I was paying in CA.

[Curmudgeon]

I think the bottom line is that there is no way to really make across the board comparisons when it comes to taxes. What may look like a low tax state because they don't tax income may not be when sales, property and vehicle taxes are taken into consideration. I don't believe that the many "tax burden" comparisons out there really tell the true stories either because they don't take into account other elements of COL; most particularly such things as housing and utility costs.

We moved from a state that doesn't tax food to a state that does although at a very low rate. However, the property tax on our home is about a third of what it would be in the state we left. Our pensions would also be taxed in the former state but here we pay no income tax at all. We do pay a personal property tax on our vehicle as well as registration but the totals are several hundred dollars less than just registration and smog checks would be costing us had we not moved, and gas is considerably cheaper here as well.

Just looking at income tax vs. no income tax doesn't come close to telling the whole story. Cost of living index paints a much truer picture - 98.8 from whence we came compared to 77.6 where we are. Now that's significant!

[loveautumn]

small college towns in New York, well there are alot of colleges in New York State but I would say Ithaca, home of Cornell University (although not inexpensive and a bit isolated, but beautiful, very liberal), and
Brockport.