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Old 07-31-2011, 04:04 AM
 
Location: Victoria TX
42,554 posts, read 86,968,624 times
Reputation: 36644

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Quote:
Originally Posted by MINresident View Post

1) How does Texas get away with no state income tax? Less services? Higher property and sales taxes?
The simple answer to that question is Extraction Taxes. Texas has lots of natural resources (oil and gas), and there is a tax on the oil and gas that comes out of the ground. This tax is passed along to the people who are the end users of those resources, so people in New York and California pay quite a bit of our taxes for us, thank you.

Also, Texas pay higher than average sales taxes and personal property taxes, which make up for the shortfall in income taxes. Florida and Washington and a dozen or so smaller states also have no state income tax. Move across the border from Calcasieu Parish Louisiana into Orange County Texas, and the personal property tax on your house will go up about ten times as much.

Every state has a budget, and needs enough revenue to pay the expenditures. They don't all go to the same kinds of tax strategies to get it, but they all get it somehow, from somebody.
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Old 07-31-2011, 12:11 PM
 
Location: Central Texas
13,714 posts, read 31,173,187 times
Reputation: 9270
Texas' sales taxes are not much higher than the national average - most parts of Texas have sales tax in the range of 8%.

Texas has a property tax, but it shouldn't be described as a "personal" property tax. Some states tax cars, boats, and other property. Texas only taxes land-based "property." Commercial property is taxed, not just property owned by individuals.
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Old 07-31-2011, 01:23 PM
 
Location: Austin, TX
16,787 posts, read 49,063,260 times
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All of the property tax goes to counties, schools and local governments. None of the property tax goes to the State. The State of Texas makes most of its income from fee's and sales tax.

The fee's the State charge are just a way taxing you while calling it something else.
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Old 08-01-2011, 03:55 PM
 
Location: Texas
751 posts, read 1,482,525 times
Reputation: 1077
Quote:
Originally Posted by hoffdano View Post
Texas' sales taxes are not much higher than the national average - most parts of Texas have sales tax in the range of 8%.

Texas has a property tax, but it shouldn't be described as a "personal" property tax. Some states tax cars, boats, and other property. Texas only taxes land-based "property." Commercial property is taxed, not just property owned by individuals.

Some counties in Tx do indeed have a property tax on vehicles. Can't say I know for sure about boats, though...
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