Sales Taxes in Texas (Tyler, Howe: 2013, credit, homes)

[majoun]

In discussions of the Texas economic model which has proven successful in the 21st century, it is mentioned that Texas has no income tax and high property taxes. This is usually contrasted with California's model of low property taxes and high income and sales taxes, which has been largely discredited and leads to problems related to speculation and bubbles.

In these discussions, sales taxes in Texas never get mentioned much. What is the level of sales taxation in Texas? Is it high? Low? In-between?

Just wondered.

[War Beagle]

The state limits sales taxes at 8.25%. 6.25% goes to the state whereas local areas have the option to assess up to an additional 2%.

I would classify our sales taxes as medium to high.

[Willsson]

Bear in mind,

Food products (such as flour, sugar, bread, milk, eggs, fruits, vegetables and similar groceries) are not taxable.

http://www.window.state.tx.us/taxinf...s/tx96_280.pdf

So the less food you purchase, the less your tax burden.

And prescription drugs are also exempt.

And Texas does have an annual sales tax holiday...

Sales Tax Holiday
Aug. 9 - 11, 2013

Senate Bill 485 (83rd Regular Legislative Session, 2013) sets Aug. 9-11 as the dates of this year’s annual Sales Tax Holiday. As in previous years, the law exempts most clothing, footwear, school supplies and backpacks priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend.

Here's a PDF comparison on Sales Taxes in the US

www.taxadmin.org/fta/rate/sales.pdf

[SpikeSCM]

Out here in east Texas (Tyler) I've noticed that on the whole retail prices, especially for food, are much higher than when I lived in Mass/NY, so it leads to a higher sales tax burden than other states. However, the lack of personal income tax greatly offsets it. If you are someone living on a fixed income or mainly drawing income from sources that are taxed at much lower rates it would make sense to me to live in a state with lower retail prices and a higher standard of living.

[hoffdano]

Originally Posted by majoun

In discussions of the Texas economic model which has proven successful in the 21st century, it is mentioned that Texas has no income tax and high property taxes. This is usually contrasted with California's model of low property taxes and high income and sales taxes, which has been largely discredited and leads to problems related to speculation and bubbles.

In these discussions, sales taxes in Texas never get mentioned much. What is the level of sales taxation in Texas? Is it high? Low? In-between?

Just wondered.

Texas' property taxes are probably over stated. The rates are higher than in many areas. But against lower property values the actual property tax expense isn't so high. Illinois, NJ, Conn. etc. have higher property taxes (and high rates).

Even Californians pay property taxes close to what Texans pay. 1.3% x $500K is the same as 2.6% x 250K.

[Mark Senior]

Originally Posted by SpikeSCM

Out here in east Texas (Tyler) I've noticed that on the whole retail prices, especially for food, are much higher than when I lived in Mass/NY, so it leads to a higher sales tax burden than other states. However, the lack of personal income tax greatly offsets it. If you are someone living on a fixed income or mainly drawing income from sources that are taxed at much lower rates it would make sense to me to live in a state with lower retail prices and a higher standard of living.

An area in Texas with a lower city property tax is Tyler. The city tax rate of .20 per 100 valuation, has been the lowest in Texas for over 5 years. Lowest of any town over 15,000 pop. and lower than most of the others, unless you're town is sitting on a gas or oil field. So on a 200,000 valuation home with no exemptions for homestead the dollar amount would be $400 per year, your cost would be about $330 per year approx. Most other cities would average about 1,200 to 1,500 per year. Other taxes in Tyler are just state average. Anyway you do save, in that one area in Tyler.

[War Beagle]

Originally Posted by Mark Senior

An area in Texas with a lower city property tax is Tyler. The city tax rate of .20 per 100 valuation, has been the lowest in Texas for over 5 years. Lowest of any town over 15,000 pop. and lower than most of the others, unless you're town is sitting on a gas or oil field. So on a 200,000 valuation home with no exemptions for homestead the dollar amount would be $400 per year, your cost would be about $330 per year approx. Most other cities would average about 1,200 to 1,500 per year. Other taxes in Tyler are just state average. Anyway you do save, in that one area in Tyler.

Is Tyler still free of municipal debt? I believe they had no debt as of a few years ago.