High Sales Tax (Knoxville, Chattanooga, Cleveland: assessor, mortgage, house)

[Kim918]

Originally Posted by tntim

I believe that most people that complain about the sales tax in TN are the ones who pay little if any federal income tax, and there for would pay little or no state income tax. You just can’t get out of paying sales tax other than limiting what you buy.

You're right! So I think that is the point in a higher sales tax. Everyone pays something this way!

[pnc66]

Originally Posted by bbkaren

Amen! Don't want to pay tax on that loaf of bread? Bake it yourself. Grow some tomatoes yourself instead of buying. It also encourages us to be more mindful of our belongings and our food and less wasteful in my opinion.

But the increase in sales tax is more than compensated for by the lack of income tax--which we pay tax on every dime we make!

Like Tennessee, here in Texas we don't pay an income tax, but our property taxes are quite high. Our groceries are not taxed though, and neither are prescription medicines. We do have 8.5% sales tax where I live in Texas.

Oh, I'd love to be able to grow my own tomatoes (and other veggies)! It's something I'm told is very, very difficult to do in our climate. It just gets too hot for them here - too hot, too fast and they burn up.

[gemkeeper]

Originally Posted by Kim918

You're right! So I think that is the point in a higher sales tax. Everyone pays something this way!

And, they should be paying what they can afford. If you are lower income, I would suggest that you do not buy a lot of consumer goods, thus, lower sales tax/yearly.

If you have a higher income, you will probably be buying more consumer goods - including groceries. (You probably will spend more on your food than Mrs. Low Income because you can afford better cuts of beef, more fresh fruits and veggies, wine, etc. - and TWINKIES!) Therefore, you will be paying more in sales taxes than the lower income folks. Very fair.

[lakerat]

Originally Posted by Lake.Lady

In Arizona we paid $2,000 a year for our motorhome registration, here it's $85! That alone more than makes up any difference in sales tax. Then there are our cars and boats to register.......and property taxes are cheaper, car insurance is cheaper and no income tax. Not only do we save money living here, but it's BEAUTIFUL here with the friendliest people I've ever met. I couldn't imagine living anywhere but here.

Very true. Not to mention, In California, they were charging $650 a year for tax on a small boat, just for the honor of owning it. Plus state income tax.$$$$

Yes. You're right. $2000 a year in Arizona vs. $85. a year in Tennessee for a motorhome.

Oh yeah. I forgot. Anywhere from $400-$600 for registration per year for your normal vehicle out west compared to under $100 here in Tennessee.

Let's see?
Beer and cigarettes=cheapers out west.
OMG, I'm a heathen.

Pricre of gas= 30-50 cents per gallon less in Tennessee.

I'll take Tennessee over any of those west coast states any day of the week.
Not to mention, the people here are way nicer that the people out west.

[TeeJayMaJay]

I thought I would about die when we went to Cookeville and bought groceries and saw the different taxes but I do agree - I think in the long run TN may come out better than other states....it was just that initial shock to see such high sales tax on such a little amount of food! Was not ready for that. But as I read your comments above it makes sense and I do think it comes out better. Right now, even though I live in FL, my property taxes are lower than TN (that is because we have a 3% cap on taxes down here plus homestead exemption of 25,000 in our home of 10 yrs old) but we can't move to any other place in FL or we will get zapped! So I guess it is somewhat like "darned it you do and darned if ya don't" - mildly put!
But over all it was the initial shock of buying groceries at Walmart that made me go "WHOA BETSY!".....but ok now once I felt my heartbeat back and look at the FULL PICTURE!

[mrs1885]

In Florida - Naples specifically - property taxes exceeded in many areas the tens of thousands of dollars a year. And the deduction for Homestead was a measly $25,000 of your property's value, which came out to very very little.

Now, I've got a 5 bedroom 2552 sq ft home on 7.25 acres and my taxes are $300 a year. That puts us way ahead of where we came from.

No complaints here!

[AlisonL]

Originally Posted by mrs1885

In Florida - Naples specifically - property taxes exceeded in many areas the tens of thousands of dollars a year. And the deduction for Homestead was a measly $25,000 of your property's value, which came out to very very little.

Now, I've got a 5 bedroom 2552 sq ft home on 7.25 acres and my taxes are $300 a year. That puts us way ahead of where we came from.

No complaints here!

Wish my taxes were that low. We have a 3 bedroom, 2 bath manufactured home on 6.5 acres and pay $1000 yr in taxes. We cannot wait to get out of here! I won't mention car insurance and all the other overpriced stuff we also have to pay.

[Doogie]

Here in LA (in and around N.O.) we have 8.75% or 9% sales tax in addition to state income tax and property tax. Sounds like a good deal to me in TN.

One question: the tax on food here is only 4%, not the full 9%. This helps reduce the tax burden on less fortunate (poor) people who are presumably buying mostly just food. Is that true in TN?

[scarletneon]

Originally Posted by Doogie

One question: the tax on food here is only 4%, not the full 9%. This helps reduce the tax burden on less fortunate (poor) people who are presumably buying mostly just food. Is that true in TN?

no. i think if it meets some "special food rules" it gets knocked down to 8.25%... whoo hoo! i mean apparently those of us who make $20K should have to pay the same tax on a loaf of bread as those who make $100K. oh well.

(in IL, the income tax is a whopping 3%. I don't own property so I don't know about property taxes, but I'm sure it gets passed down in my rent.)

[jfwinky]

Thanks for all the info about taxes (property, income, sales tax). My finance and I are looking around for a great place to relocate (we currently live in PA) and Eastern Tennessee seems to fit the bill. Want to hear about THE dumbest tax? It is called the "Right to work tax". You pay anywhere from $10 - 52.50 per year depending on what township you work in. Doesnt sound like a lot, but PA is about taxing us to death. Our home is on a little less than 1 acre, and is valued at about $90,000 and our property and school taxes add up to $1600 per year. (and 6% sales tax on certain things, and personal income tax-not sure on the % - around 3 maybe). Anyway, thanks for the insights.