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So my Husband and I are Born and raised Rhode Islander's and have been contemplating over the past year to move our family (two children 5 & 10 and my parents) to Massachusetts, due to the #1 reason TAXES!! Here in Rhode Island TAXES are RIDICULOUS........You name it and were taxed highly for it......CAR TAXES, PROPERTY TAXES, SALES TAXES even VEHICLE INSURANCE and HEALTH INSURANCE are so expensive and as you all know like everywhere else they only continuously GO UP and UP as the years progress. We ran a scenario by my accountant last tax year, if it would be beneficial as business owners to live in Mass vs. Rhode Island and he said Yes! But, I need more detail before making such a transformation. My husband is a General Contractor who does both residential and commercial property rehabbing and building, as well as flips properties.........Myself, I oversee our investment properties which all are located in Rhode Island. Currently, we own a home in Johnston, RI (which I truly love this town, not the home we have just outgrown it now), It's just a convenient town, you can have a nice home with a good amount of land but yet be close to the City and all its amenities (which is something I need, because as a true Rhode Islander, I hate driving far)! We have been looking for land because we prefer to build (its just easier for our situation, with my parents living with us too). As of right now, Johnston has 1 Acre land going for $95,000 and all the land we see in the area we like in Mass which we pretty much narrowed down too Seekonk (because its located close to R.I and the properties we own) are going for almost double the price. One Lot we have our eye on in Seekonk is $185,000 for an acre........But here is when the TAXES come into play........On the type of home were looking to build it's about $5,000 cheaper PER YEAR for PROPERTY TAXES in Massachusetts compared to RI. I guess my ULTIMATE QUESTION is with all the moving parts I have going on in my life.......IS IT ULTIMATELY CHEAPER/SMARTER AS A BUSINESS OWNER WITH PROPERTIES OWNED IN RHODE ISLAND, 4 COMPANY VEHICLES REGISTERED AND INSURED IN RHODE ISLAND TO MOVE ITS COMPANY TO MASSACHUSETTS?
I already know (LONG TERM) its worth it for PROPERTY TAX PURPOSES, BUT IS THE COST OF CAR INSURANCES, CAR TAXES, HEALTH INSURANCES AND OWNING A BUSINESS THAT FLIPS HOUSES IN RHODE ISLAND WORTH IT TO MAKE SUCH A MOVE. BECAUSE, IF IT'S AN ALL AROUND A SAVINGS/BENEFIT.....IM OUT OF HERE!! LOL
THANK YOU TO ALL WHO TOOK THE TIME TO READ THIS AND ALL WHO CAN GIVE ME KNOWLEDGEABLE ADVISE.
So my Husband and I are Born and raised Rhode Islander's and have been contemplating over the past year to move our family (two children 5 & 10 and my parents) to Massachusetts, due to the #1 reason TAXES!! Here in Rhode Island TAXES are RIDICULOUS........You name it and were taxed highly for it......CAR TAXES, PROPERTY TAXES, SALES TAXES even VEHICLE INSURANCE and HEALTH INSURANCE are so expensive and as you all know like everywhere else they only continuously GO UP and UP as the years progress. We ran a scenario by my accountant last tax year, if it would be beneficial as business owners to live in Mass vs. Rhode Island and he said Yes! But, I need more detail before making such a transformation. My husband is a General Contractor who does both residential and commercial property rehabbing and building, as well as flips properties.........Myself, I oversee our investment properties which all are located in Rhode Island. Currently, we own a home in Johnston, RI (which I truly love this town, not the home we have just outgrown it now), It's just a convenient town, you can have a nice home with a good amount of land but yet be close to the City and all its amenities (which is something I need, because as a true Rhode Islander, I hate driving far)! We have been looking for land because we prefer to build (its just easier for our situation, with my parents living with us too). As of right now, Johnston has 1 Acre land going for $95,000 and all the land we see in the area we like in Mass which we pretty much narrowed down too Seekonk (because its located close to R.I and the properties we own) are going for almost double the price. One Lot we have our eye on in Seekonk is $185,000 for an acre........But here is when the TAXES come into play........On the type of home were looking to build it's about $5,000 cheaper PER YEAR for PROPERTY TAXES in Massachusetts compared to RI. I guess my ULTIMATE QUESTION is with all the moving parts I have going on in my life.......IS IT ULTIMATELY CHEAPER/SMARTER AS A BUSINESS OWNER WITH PROPERTIES OWNED IN RHODE ISLAND, 4 COMPANY VEHICLES REGISTERED AND INSURED IN RHODE ISLAND TO MOVE ITS COMPANY TO MASSACHUSETTS?
I already know (LONG TERM) its worth it for PROPERTY TAX PURPOSES, BUT IS THE COST OF CAR INSURANCES, CAR TAXES, HEALTH INSURANCES AND OWNING A BUSINESS THAT FLIPS HOUSES IN RHODE ISLAND WORTH IT TO MAKE SUCH A MOVE. BECAUSE, IF IT'S AN ALL AROUND A SAVINGS/BENEFIT.....IM OUT OF HERE!! LOL
THANK YOU TO ALL WHO TOOK THE TIME TO READ THIS AND ALL WHO CAN GIVE ME KNOWLEDGEABLE ADVISE.
You and your husband sound pretty savvy and probably already know the answer to your question. The reason the acre will cost twice as much in Seekonk is it's AT LEAST TWICE as valuable as the same lot in Johnston, RI. And a no small part of the reason is everything you mention. Seekonk enjoys a better local government (less taxes) than Johnston and Massachusetts enjoys a better state government (less taxes, better economy) than RI. You'll always be a Rhode Islander even if you step across the state line to live. Nobody in RI packs a lunch to go to Seekonk!
FYI: A building contractor I know recently made the move - home and business - from Rhode Island to Dighton, Mass. He said it was the best move he ever made. He said he now saves 10s of thousands of dollars a year in taxes and insurance alone. And, it goes directly to his bottom line.
Your choice is complicated by a number of things. I've found a good website to look at to be: Massachusetts | Tax Foundation
Compare each item to RI (pick states at the bottom right side of the screen).
For example RI income tax is based on a percentage of federal paid. If you have good tax shelters, you could pay very little. If you don't, you could pay a lot. MA is a flat 5.2%.
RI corporate income tax is 9%, Ma's is 8%, so a one percent differential. Best to look every category.
Building in a semi rural area like Seekonk gets you a semi rural house. If that's what you want, there are plenty of other variables. If you found cheaper land in Foster, RI by 100K would it benefit you to do a new build there if property taxes were slightly higher over time? The point is that MA may or may not be always cheaper. Location and services matter, etc.
Compare health care on the two state exchanges.
There is currently a bill in the RI Gen Assembly on the car excise tax in this state. It is proposing taxing cars on true resale value than the set highest model value now in use. If this is passed (contact your legislator!) it could be a long term game changer.
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