Too much house too soon???

[jz]

@Lithium,   does not Alaska tax oil and gas production?  So, that would be a fourth line of revenue, a state tax on natural resources such as wind, oil, minerals. With oil prices low, Alaskans has considered imposing an income tax.

[Lithium]

Hank wrote:

jz wrote:

The general principle is that states gather their revenue either through sales, property, or income taxes.

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I love your use of the phrase “or”.  As a Californian, we have sales tax of 8+%, income taxes of 9.3 to 13.3%, and a somewhat low property tax rate of 1 to 1.3% against absurdly high property valuations in most metro areas.

I’m enough of a fan of small government to think that any one of these three revenue streams should be sufficient to fund all legally necessary functions of state and local government.  With two out of three you should be able to cover necessary functions plus a fair bit of handouts, largesse, inefficiency, and corruption.  It’s stunning that we have all three sources of income at these high rates and still struggle to provide decent schools, police, fire, and roads without running massive budget deficits.

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Alaska is the only state with no income or sales tax, and their property tax is about the same.  Never been to Alaska, but makes you wonder how they can make it work and so many other states impose medium to high rates on all three.

[Zaphod]

Hank wrote:

jz wrote:

The general principle is that states gather their revenue either through sales, property, or income taxes.

Click to expand…

I love your use of the phrase “or”.  As a Californian, we have sales tax of 8+%, income taxes of 9.3 to 13.3%, and a somewhat low property tax rate of 1 to 1.3% against absurdly high property valuations in most metro areas.

I’m enough of a fan of small government to think that any one of these three revenue streams should be sufficient to fund all legally necessary functions of state and local government.  With two out of three you should be able to cover necessary functions plus a fair bit of handouts, largesse, inefficiency, and corruption.  It’s stunning that we have all three sources of income at these high rates and still struggle to provide decent schools, police, fire, and roads without running massive budget deficits.

Click to expand...

But those services have amazing benefits and pensions, overall pay is good as well. That and maybe the largesse, corruption and inefficiency is higher with all the cash swirling around.

[Hank]

jz wrote:

The general principle is that states gather their revenue either through sales, property, or income taxes.

Click to expand...

I love your use of the phrase "or".  As a Californian, we have sales tax of 8+%, income taxes of 9.3 to 13.3%, and a somewhat low property tax rate of 1 to 1.3% against absurdly high property valuations in most metro areas.

I'm enough of a fan of small government to think that any one of these three revenue streams should be sufficient to fund all legally necessary functions of state and local government.  With two out of three you should be able to cover necessary functions plus a fair bit of handouts, largesse, inefficiency, and corruption.  It's stunning that we have all three sources of income at these high rates and still struggle to provide decent schools, police, fire, and roads without running massive budget deficits.

[Hatton]

I feel location lucky.  Property tax $1600.  3200 sq feet.  In this area typical doctor home 6000sq feet.

[jz]

The general principle is that states gather their revenue either through sales, property, or income taxes.  Pick your toxin. In Illinois, we pay national  peak property taxes.   However, most would be surprised to learn that we pay only a flat  3.75% income taxes on unlimited income. Qualified retirement income is not taxed at all.  Until 5 years ago, we paid only 3% income taxes on unlimited income.

[CordMcNally]

q-school wrote:

CordMcNally wrote:

Man, this thread has given me a better perspective. A few days ago I was upset because our property taxes went UP to $5500. $5500!, I thought. How could they do that?! The fair market value is about $400k according to the county which is actually pretty fair. I’m still going to contest it…because, you know, I always do. But, I guess I won’t feel as bad when they deny me.

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i always get denied when I contest.  you got any tips?

 

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Ha! My success rate is 0%, too! I try to get a spreadsheet together with comps and then try to debate why those houses are nicer than mine. They're usually not having any of it.

[Kamban]

wrong thread

[q-school]

CordMcNally wrote:

Man, this thread has given me a better perspective. A few days ago I was upset because our property taxes went UP to $5500. $5500!, I thought. How could they do that?! The fair market value is about $400k according to the county which is actually pretty fair. I’m still going to contest it…because, you know, I always do. But, I guess I won’t feel as bad when they deny me.

Click to expand...

i always get denied when I contest.  you got any tips?

 

[CordMcNally]

Man, this thread has given me a better perspective. A few days ago I was upset because our property taxes went UP to $5500. $5500!, I thought. How could they do that?! The fair market value is about $400k according to the county which is actually pretty fair. I'm still going to contest it...because, you know, I always do. But, I guess I won't feel as bad when they deny me.

[The White Coat Investor]

Decapolis wrote:

I can’t believe how little some of you pay in property tax. I live in a LCOL Midwest town and I pay 14k a year on a 3500sqft house worth about 450k.

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It wouldn't be so bad if it's a state without income taxes. I'd rather pay $30K in property taxes than what I pay in income taxes.

[Decapolis]

I can't believe how little some of you pay in property tax. I live in a LCOL Midwest town and I pay 14k a year on a 3500sqft house worth about 450k.

[White.Beard.Doc]

The loss of deductibility of personal property taxes in the proposed tax reform legislation is going to make our expensive home prices and expensive property taxes even more burdensome, despite other great things about living here.

[CM]

White.Beard.Doc wrote:

Typical doctor house in this area: 2000 square foot house, 3 or 4 BR, 2.5 baths = 1 million dollars = $33,000/year property taxes

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jz wrote:

My prop. taxes = $12k. Home value has depreciated to $200k. $12/200=0.06.

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My condolences. That is just awful.

[Kamban]

White.Beard.Doc wrote:

2000 square foot house, 3 or 4 BR, 2.5 baths = 1 million dollars = $33,000/year property taxes

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I currently live in one such house in a medium COL. Cost to purchase it now would be $225-250K. Annual property taxes as primary property is $1600.