Every state uses a different combination of taxes to raise their revenues. From what I’ve read, Texas has no income tax but high property taxes. IIRC, their sales taxes are fairly high as well. Anyone looking to relocate has to look at the combination of income, sales, property and other taxes other states to see what is best for them. The answer won’t be the same for everyone. For example, retirees might not have much income but they still have to buy things and live somewhere, so states with low sales and property taxes might be better for them than states with no income tax.
Of course, there are many states where they have high taxes across the board. They often have high prices for other things as well. Quite the coincidence, I’m sure, but those states often have a long history of rule by Democrats. People moving there are screwed (cough, California, Rand).
Harris County in Texas (Houston area) does in fact have some pretty high property taxes, and the sales tax rate is above 9 percent. For example, property taxes on a house appraised at 150K are around 6000 per year, even with the homestead exemption.
Every state has infrastructure, government, and other obligations that have to be paid for. That money can come from income taxes, property taxes, sales tax, licensing fees, etc. What it comes down to is how efficient any particular state at distributing those incomes and expenditures to its best advantage. States that waste most of the income, like California, do not do well. States like Texas, that seem to have a good handle on the right proportions, do well.
and the sales tax rate is above 9 percent
That’s interesting. Here I’ve only been pay 8.25%, and that’s in the city areas of Harris. My property tax rate is less than 2.8%.
Harris County in Texas (Houston area) does in fact have some pretty high property taxes, and the sales tax rate is above 9 percent. For example, property taxes on a house appraised at 150K are around 6000 per year, even with the homestead exemption.
The sales tax number is slightly exaggerated (6.25 state + 1 metro + 1 city = 8.25%) and the property tax number is substantially exaggerated (about double). And you can buy a lot more house for the money in Harris than elsewhere; while the tax per appraised value may be high, the tax per square foot is reasonable since the appraised value per square foot is lower.
Here in New Hampshire, we have no income tax, no sales tax, but property taxes and a rooms and meals tax. The per capita tax burden is the 2nd lowest in the nation (used to be first, but Democrat Gov John Lynch screwed that up). We consistently balance our budget more than any other state while having minimal revenues (so Larry and Thomas’ contention that every state has to pay for the same thing in different ways is bogus). And yes, our state has the fourth lowest unemployment rate and this year had the largest drop in its unemployment rate of any state in the union, while at the same time our state got less than $1 billion of the stimulus package money, which on a per capita basis is less than 50% of the national average.
Yeah, I’d rather have our problems.
We consistently balance our budget more than any other state while having minimal revenues (so Larry and Thomas’ contention that every state has to pay for the same thing in different ways is bogus).
No, I said that every state has to raise revenue and each one chooses its own mix of taxes to achieve that goal. I never said that every state had to pay for the same things. It sounds like your state keeps their spending under control so they don’t have to tax people as much. That’s crucial because we keep hearing about the need to raise taxes but few people in politics seriously do anything about the need to keep spending under control. It sounds like a lot of states could learn from New Hampshire’s example. Your state still has taxes but they wisely keep the spending down so the taxes can stay low. I’m jealous!
My error…I did include MUD (municipal utility district) payments with the property tax amount. MUD is a bond that pays for water and sewer infrastructure in many neighborhoods that are being built inside Harris county but outside of Houston city limits. Once the bond is paid off the payment never seems to go away and instead goes to continued maintenance of those systems.
I should also note, however, that Harris County homeowners insurance is said to be higher than any other county in the nation…something to do with the Venn-diagram-like confluence of hurricane zones, tornado zones, nearby industry (unusually permissive zoning requirements), and crime.
It is true that you get a LOT of house for your dollar in this area compared to other areas, and it may be the best bang for your buck for any of the 50 largest metro areas in the nation.
Every state uses a different combination of taxes to raise their revenues. From what I’ve read, Texas has no income tax but high property taxes. IIRC, their sales taxes are fairly high as well. Anyone looking to relocate has to look at the combination of income, sales, property and other taxes other states to see what is best for them. The answer won’t be the same for everyone. For example, retirees might not have much income but they still have to buy things and live somewhere, so states with low sales and property taxes might be better for them than states with no income tax.
Of course, there are many states where they have high taxes across the board. They often have high prices for other things as well. Quite the coincidence, I’m sure, but those states often have a long history of rule by Democrats. People moving there are screwed (cough, California, Rand).
Harris County in Texas (Houston area) does in fact have some pretty high property taxes, and the sales tax rate is above 9 percent. For example, property taxes on a house appraised at 150K are around 6000 per year, even with the homestead exemption.
Every state has infrastructure, government, and other obligations that have to be paid for. That money can come from income taxes, property taxes, sales tax, licensing fees, etc. What it comes down to is how efficient any particular state at distributing those incomes and expenditures to its best advantage. States that waste most of the income, like California, do not do well. States like Texas, that seem to have a good handle on the right proportions, do well.
and the sales tax rate is above 9 percent
That’s interesting. Here I’ve only been pay 8.25%, and that’s in the city areas of Harris. My property tax rate is less than 2.8%.
The sales tax number is slightly exaggerated (6.25 state + 1 metro + 1 city = 8.25%) and the property tax number is substantially exaggerated (about double). And you can buy a lot more house for the money in Harris than elsewhere; while the tax per appraised value may be high, the tax per square foot is reasonable since the appraised value per square foot is lower.
Here in New Hampshire, we have no income tax, no sales tax, but property taxes and a rooms and meals tax. The per capita tax burden is the 2nd lowest in the nation (used to be first, but Democrat Gov John Lynch screwed that up). We consistently balance our budget more than any other state while having minimal revenues (so Larry and Thomas’ contention that every state has to pay for the same thing in different ways is bogus). And yes, our state has the fourth lowest unemployment rate and this year had the largest drop in its unemployment rate of any state in the union, while at the same time our state got less than $1 billion of the stimulus package money, which on a per capita basis is less than 50% of the national average.
Yeah, I’d rather have our problems.
We consistently balance our budget more than any other state while having minimal revenues (so Larry and Thomas’ contention that every state has to pay for the same thing in different ways is bogus).
No, I said that every state has to raise revenue and each one chooses its own mix of taxes to achieve that goal. I never said that every state had to pay for the same things. It sounds like your state keeps their spending under control so they don’t have to tax people as much. That’s crucial because we keep hearing about the need to raise taxes but few people in politics seriously do anything about the need to keep spending under control. It sounds like a lot of states could learn from New Hampshire’s example. Your state still has taxes but they wisely keep the spending down so the taxes can stay low. I’m jealous!
My error…I did include MUD (municipal utility district) payments with the property tax amount. MUD is a bond that pays for water and sewer infrastructure in many neighborhoods that are being built inside Harris county but outside of Houston city limits. Once the bond is paid off the payment never seems to go away and instead goes to continued maintenance of those systems.
I should also note, however, that Harris County homeowners insurance is said to be higher than any other county in the nation…something to do with the Venn-diagram-like confluence of hurricane zones, tornado zones, nearby industry (unusually permissive zoning requirements), and crime.
It is true that you get a LOT of house for your dollar in this area compared to other areas, and it may be the best bang for your buck for any of the 50 largest metro areas in the nation.