Posted on 06/23/2015 9:10:04 AM PDT by mn-bush-man
Everyone complains about taxes. But millions of American households apparently are doing something about it: Picking up and moving.
A CNBC analysis of tax data and figures provided by two major national moving companies shows that states with the highest per-capita taxes, for the most part, are also seeing the biggest net migration out of those states.
Take Connecticut, for example.
Earlier this week, the Nutmeg State's legislature approved a collection of new taxes to close a two-year, $40 billion budget to help pay the multibillion-dollar tab to repair and replace the state's dilapidated roads and bridges. The package includes a 50-cent-per-pack hike in cigarette taxes and a bump in tax rates on corporations and the state's wealthiest earners.
The budget battle drew heated debate, along with threats from large employers like General Electric, which issued a rare statement that it might consider moving its Fairfield headquarters.
Republican opponents warned that the tax hikes would likely drive residents to flee to lower-tax states. One legislator suggested that a local moving-and-storage company up for sale should do a booming business moving households from the state.
"I think the best buy in Connecticut right now is a business for sale in Westport," Michael A. McLachlan, R-Danbury, told the AP earlier this month as the debate wore on. "For $650,000, a sharp investor can get up and increase this business into a mega moving company, because that's what people are going to be doing, starting today."
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(Excerpt) Read more at cnbc.com ...
That's cheap by NJ standards. Compare it to approx. $7,000/year in property taxes based on an estimated value of $160,000. (And, to make matters worse, the property is worth nowhere near that amount.)
Here, the property tax includes the school tax. Every tiny little town here has its own school system and police department.
I just did a quick glance at Zillow.com for recently sold homes in Minnesota with my square footage and similar location. Sold prices were 1/3rd of my appraised value (homes sell for way over tax appraisal here) and they had acreage and were newer than my tiny lot and old crappy house. The thing that holds me here is I grew up in the house but that charm is fading.
You can buy a nice house in Giles County Va for less than $100k.
Move where? The Serengeti? Taxes are the curse of the living.
I have no idea what your property is like or what comps you used on Zillow (by the way, Zillow shows my neighbor two doors down sold his home last fall for $819,000. It sold for $329,000.). Texas and Minnesota have nearly identical median home values ($179,700 for Minnesota — upper 170’s for Texas). My firm handles real estate closings, so I have a fairly good idea of the market here. Homes generally sell for between tax assessed value on the low end and 130% of tax assessed value on the higher end. If you used Zillow comps from sales in the ag-based area of Minnesota, you’ll find sellers practically begging buyers to take homes off their hands. I have a client whose dad passed away recently owning a home in a dying western Minnesota town. Two story, 2000 sq ft, 40 year old home on 5 acres with a large heated workshop and a couple of extra storage buildings. They will be fortunate to get $50k for it. More likely in the mid-$30’s if anyone actually buys it. Move that same property 100 miles east and you’re looking at around the median home price.
Yankees shut your big mouths and mind your manners!
Since I was Born and live in Texas I will take it that you have some issues.
Old Sam said it best
“Let me tell you what is coming. After the sacrifice of countless millions of treasure and hundreds of thousands of lives, you may win Southern independence if God be not against you, but I doubt it. I tell you that, while I believe with you in the doctrine of states rights, the North is determined to preserve this Union. They are not a fiery, impulsive people as you are, for they live in colder climates. But when they begin to move in a given direction, they move with the steady momentum and perseverance of a mighty avalanche; and what I fear is, they will overwhelm the South.”
oops wrong thread.. but still love that quote!
how does that work?
if i moved to bermuda, a british island, and earned $500k without leaving the island, i would still have to pay the 40% fed tax. this is the same no matter which country i move to.
yet, you're saying if i were to base myself in PR, i would only pay the local taxes on my income? why is that?
You can be at the mercy of small boards and commissions.
Maybe, but I REALLY like the idea of having two knobs....
In Fort Worth we pay just over $3,000 for a 1,800 square foot home on 1/8 acre. House is old, built in 1910, and valued around $135K. Of course the assessor values way above market value. It’s 8% property tax in Tarrant and surrounding counties. Rural property tax is the same, but if you run a farm there are exemptions so that may be the way to go. State sales tax is 8.25. Don’t know what the gas tax is. But I think you would enjoy living in Texas. Best wishes to you.
hmmm
if puerto rico bought new land, it would fall under the same tax rules... as it’d all be part of the common wealth of puerto rico
and what if that new land was... florida?
:)
Kentucky has an income tax, but really low property taxes. By “low”, I mean the annual taxes on my 20 acres I bought with a large barn and the streams are the price of one large and one medium pizza.
The annual taxes on the 12 acres with the house are one months car payment.
West and East Texas values must offset the numbers in the rest of the state.
Check your mail.
Thanks for that, Cuban Leaf. Kentucky is worth comparing on a cost basis given Texas’ high rates.
The 10 o’clock news (www.kvue.com) just reported apartments in Austin, TX average $1092/mo and studio apartments go for $1500/mo. Apartment rentals go up 5-7% per year.
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